This case is about Ho Ching, a business women who in 2002 became the chief executive officer (CEO) for Temasek Holdings, a Singapore based state owned Investment Company that presently has 490 employees and a 223 billion dollar portfolio, focused primarily in Asia. (Temasek, 2015) This case will discuss Ho Ching’s approach to leadership and her ability to influence others with her sources of power as they apply to leadership. Ho Ching has proven her ability to influence change as the president and CEO of Singapore Technologies Group and now as the CEO of Temasek Holdings.
A leader’s role is to maximize the output of a group. In order for a leader to accomplish this they must direct and coordinate throughout the whole process. She has exemplified these attributes in her work and career. According to the (Biography of Famous People) Ho Ching is a force to be reckoned with when it comes to her ability to make deals throughout the globe. When Ho Ching became part of Temasek Holding’s, their portfolio was around 50 billion and was subject to Singapore companies only. In her first year as CEO they gained holdings around Asia and now throughout the globe.
Their portfolio more than doubled to 108 billion and is now worth 223 billion. Due to her success, I would have to say that Ho Ching is very influential as a leader. She has the ability to influence major corporations throughout the world to invest billions of dollars with Temasek Holdings and has become known over the world as a successful business women. She was also presented in Time magazine in 2007 as one of the top 100 most influential leaders in the world.
Page 2 In an excerpt of one of Ho Ching’s speeches, she utilizes persuasion and inspirational appeal in order to influence her listeners. “She explains in her speech that even though Asia has been going through an economic downturn the people of Asia are resilient. If Asia continues to work hard and work smart, honing her competitive strengths and leveraging on her complimentary capabilities across borders, the outlook in the next one or two decades is promising” (Hughes, Ginnett, and Curphy, p 145). She was rational in making logical arguments and presented factual information on the growth of the market in Asia.
She also explained how it would be advantageous to expand the Asian market into India due in part that the trade between India and Singapore has grown by 50% in the last ten years (Hughes, Ginnett, and Curphy, p 145). Ho Ching has been named one of the most powerful leaders in Asia. Power is the ability of one person to influence the behaviors and attitudes of others. Ho Ching possesses expert power based on her past positions held and her education as an engineer and past experience in the industry. Another major source of power that Ho ching possesses is legitimate power.
Legitimate power is power that is derived from a position and held as belonging to that person in that position. Ho ching has legitimate power based on her position as Chief Executive Officer (CEO) in Temasek Holding’s. In the East Asian culture upper management is obeyed strictly without question and very little influence from lower management, this also strengthens her legitimate power. By Ho Ching being married to the current prime minister of Singapore, Lee Hsein Loong, she also possesses reward power/referent power.
She has made some large deals within Asia based partly on her ties to Singapore royalty. Although this is not directly addressed in the case it is likely that as CEO she has access to resources and the ability to leverage both of these bases of power. Page 3 According to (Reuters) in 2009 Ho Ching was going to step down as CEO for Temasek Holding’s after losing large amounts of money on deals made with Merrill Lynch and Barclay’s. Temasek invested over 5 billion with Merrill alone and lost over 2 billion on the one deal.
Temasek is looking at replacing Ho Ching with a man named Chip Goodyear the former CEO of BHP, Billiton. Of course this never took place and Ho Ching still sits on the board at Temasek Holdings as CEO still today. When Ho Ching was being looked at for the CEO position of Temaseki Holding’s, a government owned company, people felt that the only reason that she was being looked at for the position was the fact that she was the wife of the prime minister of Singapore, Lee Hsein Loong. Soon after being placed in the position of CEO, Ho Ching discounted this idea by showing the people of Singapore and the board of directors that not only was she a perfect fit, but was the best candidate.
Within the first year in her new position she doubled the total portfolio of the company and showed the world that she was not only a good CEO, but was voted by Forbes as one of the top 100 most influential leaders in the world. This is a good example of how perception can lead people to view an individual wrong, based on factors that have nothing to do with the individual’s abilities, experiences, and knowledge.
Page 4 References Biography of Famous People, Retrieved February 10, 2015, from http://biography. 1writers. com/ho- ching-biography-and-photos/ Hatten, Timothy. S. (2012). Small Business Management: Entrepreneurship and Beyond. Mason, Ohio: South-Western, Cengage Learning. Reuters: Temasek CEO Ho Ching to quit after rocky ride, Retrieved February 18, 2015, from http://www. reuters. com/article/2009/02/06/us-temasek-idUSTRE5152CA20090206 Temasek, Retrieved February 10, 2015, from http://www. temasek. com. sg/.