Leadership and management have different influences on the company, depending on the type of leadership style applied to the company. While one leadership style may effectively work in a particular company, it may only work in others, or less so. Nevertheless, collaboration between employees and leaders may positively impact the company, depending on the management style. This essay will then analyze the origin of the different leadership and management theories and how their application today has benefited various organisations worldwide. It will also investigate how leadership-related aspects, such as motivation, facilitate organizational employee performance.
Multiple individuals have described leadership using theories such as the Great Man theory, trait, and situational theory. The Great Man theory’s founding principle is that leaders are not created or nurtured; they are born. Therefore, according to this theory, leaders do not acquire their leadership skills from any training; they must have unique personalities that make them leaders. According to the Great Man theory, just a handful of people have the unique qualities needed to be successful leaders (Benmira and Agboola, 2021). Unlike the Great Man theory, the trait theory argues that leaders can be created by training to acquire the needed skills or be born with specific traits. With the trait theory, leaders can also be made by undergoing specific experiences that help mold their skills. The trait theory aims to determine the ideal blend of qualities that constitute a good leader by examining leaders’ psychological, interpersonal, and bodily characteristics (Benmira and Agboola, 2021). The third central theory is the situational theory, which argues that there is no definitive leadership approach and that leadership relies on the situation one encounters; therefore, the leadership approach a leader chooses to employ depends on the situation (Benmira and Agboola, 2021). This theory shows highly esteemed leaders know when to alter their leadership strategies to complement the present situation.
The application of the three leadership theories mentioned in the section above can be examined using various leaders in different organisations. Firstly, the Great Man theory can be applied to Jack Ma, who led the Alibaba Company. The Great Man theory believes that specific individuals are born with distinct qualities that make them unique from the rest of the people. Therefore, possessing these attributes allows them to hold leadership positions and influence (Benmira and Agboola, 2021). The characteristics of natural-born leaders would be significant in start-up businesses to help motivate employees at the company’s initial stages when most do not believe in its success. Natural-born leaders’ resilience and visionary thoughts help them navigate the obstacles they face in their personal and leadership lives. For instance, Jack Ma can be considered a natural leader because despite having gone through various obstacles in life, especially in his educational journey, he was determined to establish a global organization. Despite having faced stiff competition, Jack Ma consistently led Alibaba.com to greater heights (Gregersen, 2019).
Secondly, trait leadership theory can be applied to Jeff Bezos’s leadership at Amazon. According to the trait leadership theory, leadership skills can be nurtured through training and be born with them. Therefore, according to trait leadership theory, certain people have the traits they need to be leaders, but their experiences can also enhance their traits (Benmira and Agboola, 2021). Jeff Bezos is a leader who is thought to possess unique characteristics that make him a threader; he is supposed to be visionary, goal-oriented, and have excellent listening skills. Right from the beginning, when he established Amazon in his garage, Jeff knew that he wanted Amazon to be a global company with diverse business operations. Elsewhere, Bezos once explained why he spoke at the end of the meeting, having keenly listened to everyone else to be able to provide his insights (Anon, n.d). This is a unique trait because many leaders in his position would strive to be heard instead of listening to others.
Thirdly, situational leadership theory can be applied to Steve Jobs’s leadership at Apple. Situational leadership theory analyses the leader’s ability to evaluate different situations, altering his leadership style to deal with situations best (Benmira and Agboola, 2021). Steve Jobs served as a leader at Apple during two separate tenures, in which he notably used different types of leadership approaches depending on the problem at hand (Peek, 2023). During the first time, Steve was believed to have used strict approaches to leadership. During this period, the company was still younger, while in the second tenure, he was thought to be friendlier to the employees, creating a friendly organizational climate. When he returned to Apple during his second tenure, the company faced a financial crisis compared to the first time. Therefore, different situations prompt leaders to use other leadership approaches to deal with the problems and save the organization to prevent further escalation of issues.
Management approaches are heavily based on different theoretical backgrounds from the 19th century. The three management theories discussed in this section include the Scientific Management theory, which was initiated by Fredrick Taylor and is centered on making tasks less complex to boost productivity. According to Taylor, work needed to be done efficiently and in a particular way to increase production, such as assigning workers jobs that matched their abilities instead of working up hazards; therefore, even payment would depend on the worker’s productivity (Merkle, 2023). In addition, instead of criticizing staff members over each small error, bosses ought to commend them for their improved efficiency to keep them motivated. The second theory is the bureaucratic management theory, introduced by Max Weber, who argued that to regulate itself and its employees, a company must be structured and comply with specific guidelines to increase productivity (Dash and Padhi, 2020). This theory advocated for formal management of operations within a company through a hierarchical organization of the resources where employees have specialized roles. According to Dash and Padhi (2020), Weber thought that workers support all tiers of management, and employees’ allegiance was directed toward their managers instead of the business itself. Third is the human relations theory that Elton Mayo initiated, which emphasizes promoting staff efficiency by incorporating formal and non-formal management to enhance employee fulfillment (Emmanuel, 2021). The human relations theory focuses on human resources and the best ways to motivate them by promoting and maintaining good work relations and suitable working environments.
The Scientific Management theory can be analyzed using the McDonald’s organization, which applies the ideologies embedded in this theory. The theory argues that employees ought to be assigned roles that they are good at instead of giving them jobs that are likely to perform poorly. Therefore, employers should provide training to their employees to improve their skills and, hence, boost productivity within the organization (Merkle, 2023). McDonald’s has a training institution, Hamburger University, that aims to equip its franchisees with skills that will enable them to execute their work at the company with excellence and increase productivity, as the scientific management theory envisioned (Britannica, 2022). The scientific management theory also believes in uploading employees for their job well done instead of criticizing them for their mistakes all the time and paying them according to the effort put into their job.
Bureaucratic Management theory advocates for hierarchical structuring of the organization to ease the management activities within an organization where the employee population is significantly large, and people perform different roles (Dash and Padhi, 2020). This management theory would be applicable at General Motors, which has a hierarchical organizational structure that accommodates all the regional administrative heads (Kissinger, 2023). Such a hierarchical structure assists in the company’s administrative processes in the different locations in which it is found. With the hierarchical arrangement, there is easier management of activities because departments within the company are placed under different administrative units’ hence closer supervision of employees by departmental heads.
Human Relations theory was more concerned with the role of good work relations in boosting productivity by ensuring employees feel comfortable around colleagues and their bosses. The human relations theory would be the best applicable theory to Google. Inc. as a company that works towards improving its employees’ working conditions and the organizational climate to ensure job satisfaction and fulfillment, hence increasing productivity and efficiency. Google.Inc. actively builds on its business environment strengths using both official staff training and unstructured training, such as management assistance and individualized guidance. Consequently, establishing such a culture emphasizes employee interpersonal relationships (Smithson, 2022). The company encourages Human relations by establishing a friendly workplace where staff members are free to communicate and exchange perspectives, boosting employee morale and satisfaction and increasing productivity.
3.1.1. Transformational Leadership at Tesco plc
In transformational leadership, managers must help staff members advance toward greater inspiration and satisfaction at work (Hai et al., 2021). Tesco plc is a global retailer that has recently introduced several changes in its retail stores to maintain its competitive advantage. Among the most notable changes introduced at Tesco Plc are the management roles in some retail stores to improve their daily operations, including employee shifts (Tesco Plc, 2023). The second notable change is the closing of their counters in most of their retail stores, with the company citing less demand for counters in the last years (Tesco Plc, 2023). The introduction of changes within organizations may interfere with morale, especially if they have difficulties navigating through these changes; nevertheless, with exemplary leadership, such as transformational leadership, the transformational process becomes relatively easy. Transformational leaders can inspire subordinates to realize their strengths and get past individual and professional setbacks to work toward the organization’s overall success (Hai et al., 2021). Therefore, transformational leadership at Tesco plc, especially during this transformational process, would enhance staff confidence by empowering and boosting the employee’s self-drive to embrace changes and work towards accomplishing the organizational objectives above expectations.
3.1.2. Transactional Leadership at Vodafone
The transactional leadership style is considered task-oriented because the leaders focus more on the jobs being done by the employees as opposed to the employees themselves (Abbas and Ali, 2023). Therefore, unlike transformational leadership, this style uses a very different approach to motivating its employees, such as a monetary reward for the performers. Vodafone is a U.K. Telecommunications Company facing a significant financial crisis over the last few years. Just recently, there have been 11000 job losses in the organization, and the company experienced share price reductions (Warrington, 2023). The transactional leadership approach would be practical in this scenario at Vodafone because it is believed to keep a close watch on the businesses and the people’s performance and hence can take immediate corrective actions. By establishing short-term goals in the company, a transactional leader can then work on slowly helping the company through crisis, each step at a time, and eventually help the company recover. A transactional leader would also help identify and motivate non-performing employees with monetary rewards upon reaching specific organizational objectives.
3.1.3. Collaborative Leadership Style at Royal Mail Group Limited
Inclusive leadership is known as a collaborative leadership style where the leader’s role is inclined to advise and oversee the organization’s decision-making process and execution of initiatives by employees to achieve organizational objectives, as opposed to dominating over employees (Shu and Wang, 2021). A scenario where a collaborative leadership style would be effectively applicable was during the Strike period at Royal Mail Group Limited last year. Royal Mail, as it is commonly known, is a company that offers courier and delivery services in the United Kingdom. In 2023, around 115,000 employees at Royal Mail went on an 18-day workers’ strike seeking better salaries from their employer. Consequently, this resulted in financial losses for the company due to the prolonged paralysis of operations within the company (BBC, 2023). Collaborative leadership would be appropriate because, to address an issue, collaborative leaders listen to their employees and ensure that all members are treated equally. Collaborative leadership would have assisted in the quicker resolution of issues at the Royal Mail Company, hence lessening the financial losses.
3.2.1. Autocratic Management Style in British Petroleum Company
Autocratic leadership is a management style where leaders within the organization exercise complete control in the decision-making processes and expect the employees to abide by the rules. The success of an organization corresponds with expertise, competence, and experience-based governance. Therefore, more effective scheduling and performance-supporting initiatives are thus linked to autocratic management (Jaafar et al., 2021). The British Petroleum Company oil spillage in the Mexican Gulf in 2010 left the majority of the community facing long-term health issues such as cancer and breathing problems (Sneath and Laughland, 2023). This is a scenario where an Autocratic management style would have been very effective because, in autocratic leadership, employee feedback is less important; therefore, decisions are solely made by the senior management. In addition, this management style is effective because it is prompt, and in emergencies, prompt choices are vital in deciding the best way forward. In the case of British Petroleum, the management had to make quick decisions that would help mitigate the situation at hand, hence the effectiveness of autocracy in the scenario. Such decisions included finding short-term solutions to prevent further oil leakage into the surrounding areas, saving lives.
3.2.2. Democratic Leadership in Post Office Ltd
Democratic leadership style allows scenario management to lend a voice to other employees within the company rather than making sole decisions. A democratic leader actively collaborates with employees in the decision-making processes in the organization by reaching out and paying attention to dissenters to better understand the basis of dissenting opinions (Fakhri et al., 2021). The Great British Post Office Limited Company was recently involved in a situation that a democratic leadership style would have addressed more effectively to avoid job losses for company employees. In the last 15 years until 2015, the company fired many of its employees due to financial misconduct the employees were believed to be committing (Soussi, 2024). Nonetheless, it was only recently discovered that the company’s Software had been miscalculated, interfering with the transaction records (Soussi, 2024). Democratic leadership style would be effective in this scenario because it would allow senior management to engage its employees more and give them a fair chance to explain themselves instead of making rational decisions that eventually ruin the lives of innocent employees. Democratic leaders are fair and just. Since most of the employees in the company had not been previously involved in criminal activities, democratic leadership at the company would not have been quick to judge.
3.2.3. Laissez-fair Management Style at Microsoft
The laissez-faire leadership style is considered unique because leaders give their followers the authority to judge by delegating organizational duties. Consequently, Good learning chances are created for followers by this leadership approach because employees can learn from their experiences and those of colleagues (Ahmed Iqbal et al., 2021). Microsoft Corporation has been successful throughout its years of operation despite experiencing a few hiccups here and there. In an interview, the former CEO and founder of the Company, Bill Gates, admitted to memorizing his employees’ number plates during his early years. This scenario indicates Gates is trying to micromanage his employees, a scenario where Laissa’s leadership style would be effective (Chan, 2016). The micromanagement of employees could interfere with their morale and productivity because of the unnecessary pressure it puts employees through. Therefore, a Laissez-faire leadership style is effective because when workers are exceptionally competent and driven, the approach works better and promotes success in the workplace since these leaders refrain from interfering with its operations (Ahmed Iqbal et al., 2021). Decisions are made by subordinates under laissez-faire leaders.
People have different ways of conducting their everyday lives, and so do organizations. An organizational culture is a framework of mutual understanding that all members hold, and such a culture sets the group apart from competitors. Organizational culture is built around organizations with unique guidelines and statutes tailored to attaining their objectives (Fidyah and Setiawati, 2020). When employees get accustomed to a culture within their working environments, there is likely increased job satisfaction because employees already know how to handle specific issues that could arise. Nevertheless, comfort may also hinder innovation because employees get too comfortable doing certain things as a norm.
4.2.1. Organisational Policies
A policy is a predetermined action plan in reaction to an existing or possibly emerging challenge or situation by a particular person, a performer, or a group of individuals (Edward et al., 2021). Therefore, organizational policies indicate how certain activities should be conducted within the organizations and outline the regulations employees should abide by. Therefore, policies assist in establishing an organizational culture whereby employees get used to adhering to certain company regulations and have a specific way of conducting their activities as outlined by the organizational policies. When organizational policies change, the organizational culture will likely change to allow people to adopt new working methods per the new policies.
4.2.2. Country’s Culture
A national culture is a vast and intricate collection of customs, principles, tenets, expertise, and figurative artworks that are seen as uniquely its own and that have developed from its previous experiences and customs while operating within it (Szydło and Grześ-Bukłaho, 2020). National cultures may be reflected in a society’s religious, political, and sociological practices. National cultures influence organizational cultures by shaping how employees relate to each other within work environments regarding the sociological perspective individual nations lean towards. For instance, some national cultures lean towards collectivism while others lean towards individualism. Therefore, the broader national culture influences how organizations conduct their activities. National culture could also influence organizational culture regarding how certain activities are conducted. For instance, some national cultures may classify some tasks depending on gender, where some tasks are regarded as female or male tasks.
4.2.3. Type of Leadership Style
Leadership influences organizational culture and employees’ behaviors based on how leaders and employees interact with each other. Transformational leadership influences organisational culture based on certain ideologies associated with transformational leaders. For instance, transformational leaders encourage collaboration among employees and equally interact well with their employees (Srisatha et al., 2020). In addition, transformational leaders are also known to be inspirational, fostering intrinsic motivation among their team members (Nguyen et al., 2023). By doing so, transformational leaders encourage a particular organisational culture within the organization where employees feel comfortable interacting and exchanging ideas with their leaders and fellow staff members. Shift in the leadership style, for instance, when a transactional leader succeeds a transformational leader. This is also likely to result in changes in organizational culture because the new leader is likely to introduce a new approach to leading the organization.
4.2.4. Strategic Tools
Businesses utilise different tools and approaches in conducting their operations depending on the goods and services they provide to the people. Strategic tools may be used in the planning, execution, or business management. Strategic tools foster an organizational culture because it is by learning the type of tools most suitable to the business that companies generate their innovative ideas by utilizing these strategic tools and approaches (Srisatha et al., 2020). Strategy changes consequently lead to res result interruptions in the organization because employees and their leaders have to learn how to navigate the new transformations.
Motivation is a human drive that affects the course, tenacity, and determination of unforced conduct whereby people willingly engage in activities to achieve specific objectives (Lutfi et al., 2022). Motivation could result from having an internal self-drive or expecting certain rewards upon performing certain activities ( Kollmann et al., 2020). Intrinsic motivation is a type of motivation where individuals develop an inner drive to willingly engage in certain activities with minimal monetary rewards, unlike extrinsic motivation, where individuals perform certain activities hoping to get incentives. In an organization, the motivation of employees is known to increase their commitment and engagement in their everyday activities within the company.
Motivation theories that emerge are classified into process or content theories. The equity motivation theory is a process theory that states that people’s inner drive is impacted by the amount of compensation they acquire and how much they believe they have accomplished ( Kollmann et al., 2020). The equity motivation theory considers the ideas of equal treatment and fairness in addition to the significance of peer comparison, whereby people compare themselves and their peers regarding the rewards and equal treatment each of them gets. Therefore, the equity theory argues that when someone notices a disparity between them and a peer, they are likely to modify their effort to render their circumstances more equitable as per their thinking.
On the other hand, Maslow’s hierarchy of needs is a content theory that argues that specific biological and emotional needs, which are arranged from fundamental to complex, are highly involved in facilitating human behavior and motivation. Maslow then classified these needs in a hierarchical order with physiological needs, safety needs, being at the base of the pyramid as the essential needs of human beings, then love/belongingness needs, esteem needs, and self-actualization (Abbas, 2020). Therefore, self-actualization is at the top of the pyramid, suggesting that all the other needs must first be met to attain that self-actualization.
An actual life situation that requires motivation is the employees at Amazon Company, more so those working in Europe who have been consistently organizing strikes and engaging the company to increase their wages and improve their working conditions. These strikes are also causing the company losses because, like last year, the worker’s strike happened during the black Friday period when operations were at their peak (Stewart, n.d). At a time when economic times are tough for most people, monetary rewards and incentives are significant motivational factors for employees. Therefore, Amazon should motivate its employees to avoid losses, halt business operations, improve job satisfaction, and reduce turnover.
Amazon is a company that heavily relies on its employees to attain its objectives of delivering goods to clients on time. Therefore, when employee strikes happen, the company fails to attain its objectives because shipment and packaging activities at its warehouses are halted. In resolving the employee strike issue, the company needs to come to a consensus with employees and develop a permanent solution to prevent future strikes. A motivational strategy to help resolve the problem would involve ensuring that the company meets the employees’ basic needs, such as good working conditions. This way, the employees can feel like part of the significant community at the organization instead of mere employees who can be replaced at any time. When the employees feel appreciated, they are also likely to be empowered and feel fulfilled working for the organization, providing an effective intrinsic motivation system. In addition, establishing communication channels where the employees can quickly air their concerns to the management without involving third parties is included.
Secondly, Amazon would be required to provide a monetary reward system for its employees and motivate them extrinsically through timely payments, compensating the employee’s effort with the right amount of money so they do not feel unappreciated. Such would include payments for working overtime and during the weekends and public holidays. The company could also give its employees bonuses during the peak seasons when the sales and business operations are at their peak. Different payment packages for various categories of employees would show appreciation for their efforts. For instance, drivers and warehouse employees encounter different risks. This way, they can also pay employees involved in carrying out special assignments or those who experience difficulties such as poor weather.
Thirdly, Amazon should provide their employees with flexible working hours, so they have free hours outside work environments and do not feel pressured to be at work. Amazon can also be lenient with the work schedules where there are job rotations, and employees can comfortably choose their work schedules, especially on national holidays and weekends.
Organizations’ leaders and managers are involved in conducting daily supervisory duties to ensure the smooth running of company organizations. Nevertheless, particular situations within the company are unique and may require the leaders to put in more effort to ensure that the objectives within a specified period are met. This essay identifies three situations that are likely to require the application of leadership and management approaches. They include a company facing a financial crisis, often requiring it to sell its assets, fire employees, or even merge with other companies to avoid further losses. Financial crises within a company may be influenced by multiple factors within and outside the company. They require leadership and management approaches to develop immediate viable solutions to help the company out of the crisis. The second situation is when a company introduces new products and services to the people and expands its operations globally. This situation requires getting all employees on board to ensure the project succeeds and financial goals are achieved. Leadership and management approaches during such a situation would be necessary because employees must work under strict timelines during such times. The third situation is when a company is rebranding and starting a new one. Businesses often need to rebrand to survive severe crises, requiring a leadership and management approach.
6.2.1. Transactional Leadership in Financial Crisis
Financial crises are different because internal or external factors may influence them. The financial crisis brought about by internal factors may involve fraudulent company employees who alter the company’s financial records. Financial crisis may also come about due to consistent poor investment by the company over the years. In analyzing transactional leadership style, this section will examine the financial crisis caused by company employees. Transactional leadership would be appropriate in such a situation because it applies immediate corrective measures, and in such a scenario, the transactional leader would act immediately after identifying the culprit. Although transactional leadership is not associated with finding solutions, this leadership style closely supervises employees’ performance to ensure they all work towards achieving the laid-out short-term goals (Abbas and Ali, 2023). In addition, transactional leadership is highly involved in punishments and rewards depending on the employee’s performance. While trying to resolve a financial crisis, all employees are expected to perform because otherwise, the crisis will likely be prolonged. Therefore, transactional leadership would improve the performance of all employees.
6.2.2. Collaborative Leadership Style during Introduction of New Products in the Market
Collaborative leaders are highly engaged in company activities to ensure employees are acknowledged as part and parcels of the decision-making processes (Shu and Wang, 2021). Creating and launching new products in an organization is a decision that lies with scenario management. However, the employees are heavily engaged in the subsequent activities that result in the product’s successful launch. Collaboration improves the performance of employees because they are highly motivated to perform their duties diligently since they are actively engaged in company activities. Collaborative leaders would be highly involved in this situation. They would also be involved in providing their insights to the different teams they would be working with to ensure open communication and high performance since team members would have all the required information to execute their roles.
6.2.3. Transformational Leadership during Rebranding
A rebranding process aims to improve the company by embracing necessary changes. In such a process, there are clear objectives that the organization intends to achieve, and it would only do this with the assistance of all employees. Transformational leaders are inspirational and work towards having everybody on board by encouraging individualized influence where they acknowledge the capabilities of all the team members (Hai et al., 2021). In addition, they empower employees to exploit their full potential and attain self-fulfillment, hence job satisfaction. In a rebranding process, transformational leadership would assist team members in establishing individual objectives and motivate them toward accomplishing those and the organizational goals.
6.3.1. Autocratic Management Style in Financial Crisis
Autocratic managers avoid involving employees in decision-making because they exercise authority over their employees ( Jafaaar et al., 2021). In a financial crisis caused by company employees, this management style would be effective because the findings that the scenario management is likely to obtain from their investigations would be significantly less likely to be disseminated to the rest of the employees. This is because, in an autocratic management style, there are minimal interactions between employees and their leaders; therefore, in such situations, autocracy would help improve performance because it would prevent unnecessary discussion among employees on the organizational crisis, but instead, they would be focused on helping the company achieve the set-out objectives. Autocratic leadership style would also be very effective in improving performance because autocrats communicate the organizational objectives and their expectations for their employees very clearly
6.3.2. Laissez management style during Introduction of New Products in the Market
Introducing new products to the market means engaging professionals within the sales and marketing department to ensure the successful launch and advertising of the products. Laissez-faire management believes in delegating duties among employees by the leaders, hence building employee confidence (Ahmed Iqbal et al., 2021). The launching and advertising of a new product in the market means it is a long process that involves the creation of the products as well as engaging in adequate preparation activities to ensure the successful introduction of the product. Therefore, by trusting and allowing all employees to carry out their duties diligently during these processes, laissez-faire would help boost employee performance because there will be pressure and micro-management from senior leaders.
6.3.3. Democratic Management during Rebranding
Democratic management approaches include team members in the decision-making to get their insights and maintain an open, transparent relationship between leaders and employees (Fakhri et al., 2021). Democratic leaders are not judgemental and believe in hearing other people out, so employees, through the rebranding processes, would get to have fruitful interpersonal relationships with their leaders. This management process is effective during rebranding because it helps senior management gain insights from employees on the dos and don’ts to avoid repeating the same mistakes. The process boosts performance because it provides enough time for employees to share their ideas and develop collective strategies to tackle new challenges they will likely encounter after the company successfully achieves its objectives.
In conclusion, individual attributes of leaders differ, hence making leaders different as much as they are similar in how they perform their duties. Although the leadership and management styles were first put into perspective years ago when organisational settings were completely different compared to today, the ideologies behind these theories are still applicable in the current world. They have also given rise to fresh leadership and management styles that are still as effective as the older approaches. Leadership plays a significant role in determining the organizational culture, including organizational policies, strategic tools, and national culture, and hence, is a vital aspect of a company.
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