Chairman of New World Development Company Limited Cheng Yu Tong Group 6 Outline (Click to go to different parts) Profile of CHENG YU TONG His Career Development Position.
Download ReportTranscript Chairman of New World Development Company Limited Cheng Yu Tong Group 6 Outline (Click to go to different parts) Profile of CHENG YU TONG His Career Development Position.
Slide 1
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 2
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 3
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 4
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 5
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 6
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 7
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 8
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 9
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 10
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 11
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 12
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 13
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 14
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 15
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 16
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 17
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 18
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 19
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 20
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 21
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 22
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 23
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 24
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 25
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 26
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 27
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 28
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 29
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 30
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 31
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 32
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 33
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 34
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 35
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 36
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 37
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 38
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 39
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 40
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 41
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 42
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 43
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 44
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 45
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 2
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 3
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 4
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 5
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 6
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 7
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 8
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 9
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 10
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 11
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 12
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 13
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 14
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 15
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 16
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 17
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 18
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 19
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 20
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 21
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 22
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 23
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 24
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 25
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 26
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 27
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 28
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 29
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 30
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 31
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 32
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 33
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 34
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 35
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 36
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 37
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 38
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 39
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 40
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 41
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 42
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 43
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 44
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.
Slide 45
Chairman of New World
Development Company
Limited
Cheng Yu Tong
Group 6
Outline (Click to go to different parts)
Profile of CHENG YU TONG
His Career Development
Position of CHENG YU TONG
His personal Attributes as a leader
- Trait Approach
- Behavior Approach
His leadership style
Situational factor contributing to his success
Will Cheng continue success as a leader?
What we’ve learn from him?
Profile of CHENG YU TONG
Name: CHENG YU TONG
Year of birth: 1925
Marriage status: a wife with 2 sons and 2
daughters
Education level: primary school
Field : Business
Corporation Website: Click Here
Core business:
Property, service, infrastructure,
ports, telecommunication and
some strategic business.
Back to our outline
His Career Development
1940
worked in Chow Tai Fook, a jewelry shop, as trainee
1943
Married with daughter of Chow Tai Fook
1960
Chow Tai Fook was acquired by Dr. Cheng Yu Tong
1970
establishment of New World Development
In late 70s
diversify to other business e.g. gambling.
foreign property , TV, hotel
In 90s
diversify to telecommunication
market eg. New world Mobility
Back to our outline
Position of Cheng Yu Tong
Chairman of Chow Tai
Fook Enterprises
Limited
Chairman of the New
World Development
Company Limited
Director of the Hang
Seng Bank
Back to our outline
Personal Attributes as a
Leader
Personal Attributes as a leader
Trait approach (Big Five Model)
Behavioral approach
(Yukl’s approach)
Trait Approach (Big Five Model)
An integrative conceptual framework
small number of metaconstructs
encompass all relevant personal traits of a
leader
Simple~~
Trait approach (Big Five Model)
Surgency
• Extroversion
Always go to play golf with his friends
e.g.Li Ka Shing
Went to China with his subordinates before he made
contracts with the Chinese business
• Energy and activity level
At an age of 77, he is still the chairman of directors of the
New World Development Company Limited and makes
important strategic decisions for the company currently.
• Need for power
Try to gain as much power as he can in the New World
Development Company Limited which is a listed
company
Trait approach (Big Five Model)
Conscientiousness
• Personal integrity
Let his patron be the chairman of the New World
Development Limited for 10 years (until March,1982)
-- Need for achievement
In 1972, he decided to build the best buildings in Tsim
Sha Tsui and went to Paris to ask for experts’ opinion
about the style of construction.
• Dependability
When he came back to the office in 1991, he could
increase the profit margin from $1.168 billion (1991) to
$2.363 billion (1992)
Trait approach (Big Five Model)
Agreeableness
• Cheerful and Optimistic
Investment in gambling industry (1977) and
navigation (1983): made a loss. This did not
discourage him from expanding his company.
Optimistic about the future of Hong Kong after
1997.
• Nurturance (sympathetic, helpful)
Cooperation with and provision of assistance to
social groups (e.g. religious group) on land
development.
Trait approach (Big Five Model)
Adjustment
• Emotional Stability
Investment in gambling industry in Telran of
Iraq (1977): a loss.
This did not reduce his confidence in making
decisions afterward.
Trait approach (Big Five Model)
Intellectance
• Open Minded
Innovative: the 1st Chinese-owned Company to issue
zero coupon bond.
Made the Chow Tai Fook Enterprises Limited into a chain
store.
But not absolutely open-minded: Rule the New World
Development Company Limited in a traditional way.
• Learning Oriented
His philosophy: on learning by doing is the best.
He began his career from a position of trainee in the
Chow Tai Fook Enterprises Limited although it was owned
by his father-in-law at that time.
Back to our outline
Personal attributes as a leader
Using the trait approach alone is not
enough because ….. even when the
component traits are all relevant, they
may not have the same relationship with
leadership behavior.
Therefore we also use the behavior
approach – the three
dimensional model
Behavior Approach: Task-oriented behavior
Monitoring
He don’t reply on others to monitor the
workers. He always monitor the work
progress by going to the construction
sites frequently. Even the short-term
employed workers know his boss.
Behavior Approach: Task-oriented behavior
Problem-solving
When the debt of his company increases
continuous in 1989, he stopped his
retirement and manage the crisis. After
his effort, the debt ratio decreases. Profit
increases by double from 1991 to 1992.
Behavior Approach: Task-oriented behavior
Planning and consulting
When he prepares to invest in China in
1992 or before land bidding etc., he will
do some research beforehand. The he’ll
consult his subordinates and then make a
thorough plan together.
Behavior approach: Relation-oriented behavior
Supporting
He believe that only if you care about your
subordinates and support them, they will
do their best for the company.
Behavior Approach: Relations-oriented behavior
Networking
He has good relationship with his subordinates,
the government (he built the Hong Kong
Conventional
Centre
with
the
Trade
Development Council) and
even his competitors
(He always play golf
with Li Ka Shing and
Lee Shiu Kee)
Behavior Approach: Change-oriented behavior
His business is diversified including
property, hotel and telecommunication
business. He know when and how to
make a change to his business and he
commits to the changes.
Back to our outline
Leadership style
Leadership Style
Directive leadership + few
elements of participative
leadership
Directive leadership:
• Letting subordinates know what they
are expected to do, giving specific
guidance, asking subordinates to
follow rules and procedures,
scheduling and coordinating the work.
Leadership Style
Elements of participative leadership
found on Mr. Cheng Yu-Tung:
• Delegation
• Psychological empowerment
Leadership Style
Directive Leadership
• Investment in Tsim Sha Tsui in 1970:
Although he did not have expertise in
the construction field, he gave a lots
of opinions in the styles and designs
of the buildings.
He went to the construction sites
frequently. Even the temporary
workers in the sites knew him.
Leadership Style
• Management style
Monitor the work closely.
Gave a clear and specific direction to his
subordinate, Selina Chow, who was the
head in restructuring the Asia Television
Limited
Leadership Style
Participative Leadership
• Delegation
After Mr. Chen gave a clear
goal to Selina Chow, the major
decisions in restructuring the Asia
Television Limited are left to her.
She was free to hire anyone she found capable.
She could decide how to spend a large amount of
money to strengthen the company
Leadership Style
Psychological empowerment (Selina’s
case)
• The Asia Television Limited was a joint
venture of Mr. Chen and his partner, Mr.
Lim Por Yen.
• Mr. Lim did not like the huge expenditure
approach by Selina Chow, while Mr.
Chen believed that there would be a
large return if the investment was large.
Leadership Style
• Selina could do whatever she
wanted to do when it was Mr. Cheng that
monitored the daily operation of the
company.
• When Mr. Cheng was superseded by Mr.
Lim, Selina’s power was taken away.
• Selina dissatisfied with the arrangement
and left.
• It was evidenced that empowerment was
found under Cheng’s leadership.
Leadership Style
Prudent
He prefer a debt ratio of 20% and 30% is
only acceptable while in the industry 50%
is considered as problematic.
He spend a long time (a few years) to
observe his employee's ability and
reliability.
Leadership Style
Risk Averse
He once said to the
public:
“I prefer to earn
less at low risks.
There’s no point to
be too risky.”
Back to our outline
Situational factor contributing to
his success
Situational Factor
Turning Point in his Career
1. Marriage in 1943
2. Riot in Hong Kong, 1967
3. Cooperation with Trade Development
Council (TDC) in 1985
Marriage
Stepping stone of his career
Married with Chow Tsui-Ying, (daughter
of Owner of Chow Tai Fook Jewelry Co.)
After his marriage, he become the
manager of Chow Tai Fook Jewelry Co.
in Hong Kong
Further developed his jewel business
(Expand to Diamond business)
Chow Tai Fook Jewelry Co. provide the
capital to establish New World Group
Riot in Hong Kong
Property market collapse
Price of land dropped a lot
Cheng bought large amount of
high quality land in low price
Diversity business scope from
jewelry to property market
Those land became land reserve of
New World Development Co. Ltd
Cooperation with Trade Development Council
Trade Development Council (TDC) aimed at
promoting HK industrial product
Demand for an exhibition centre
New World get very attractive deal from TDC
• Big Project
• No need to paid the difference of land price
for changing land use
• Able to build hotels around the exhibition
centre good locations
Turn to a new page of business
• Further diversity New World Development’s
different businesses e.g. Hotel, Foreign
Property, Mass Media, Telephone
Back to our outline
Will Cheng continue success as a
leader?
Continue success as a leader?
Succeed ?
• Learning Oriented
Personal Commitment “Learning by Doing”
Accumulate experience
• Prudent, Cautious Personality
Careful in making decision
Well planned person
• Emphasize on Networking
With peers, business partner, subordinates
and government
Continue success as a leader?
--Delegation (Con’t)
• Good at delegation and empowerment
to subordinate
• Cheng could focus on the issue related
to vision and direction
• Improve decision quality
Continue success as a leader?
Not Succeed ?
• Physical Ability
Already in the age of 78
Physical strength and health condition will be
worse
• Cronyism
Trust in family members mainly
Important decision made by him or his family
members e.g. his son
His successors may not be as talented as he was
Continue success as a leader?
Not Succeed (Con’t)
• Little development
Mainly rely on experience and
intuition he had
No further development in
professional knowledge
Continue success as a leader?
As a result…
• Generally SUCCEED
Cheng do well in the most important
criteria in effective leadership
•Well planning
•Networking
•Delegating
Shades of Future Success
However, since Cheng is already 78 years
old, he may not be in charged of the
company for a long time. When his
successors is not able as he was, his
kingdom could easily fall apart since he
heavily rely his family members to make
decision for his company
Back to our outline
What we’ve learn from
him?
What we’ve learn from him?
There is no single best style that can
contribute to one’s success. We need to
have different management style eg.
Partcipative or directive style, that suits
different situations
We have to be adaptable to changes and
take the chances. As we can see from Mr.
Cheng, he always foresee the potential
benefits of different situations and grab the
chance.
What we’ve learn from him?
It is important to have good network of
people. A good network can make things get
done more easily and achieve success.