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Different Styles Of Leadership And Management

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Questions:

1.Discuss how different styles of leadership and management can impact an organisation and the decision making process?

2.Provide examples to demonstrate how leadership is manifested in leading global companies(work-related learning)?
 
 

Answers:

Introduction

According to Haslam, the leadership can be defined as the concept or art of influencing the individuals in such a manner that they have their significant involvement and willingness in the achievement of the set goals and objectives (Haslam, Reicher and Platow, 2010). It is considered as a transaction among the followers and the leaders in which there is passing of guidance, lessons, information and experiences from the leaders to his subordinates. From the organisational context, there is enormous significance of organisational leadership as the success and future sustainability of any organisation is highly relied on the decisions and approaches of the leaders. It is the fundamental nature of leadership that there is motivation of the employees, efficiency in team working, resolution of the conflicts and the team working (Nahavandi, 2016). There are three primary leadership fundamentals which comprises of situational, non-hierarchical and relational. The situational leadership states that the leaders are developed according to the situations. Once the situation is diverse or gets modified, there is a need of a different leader. As per the non-hierarchical leadership fundamental, the leaders are not only the ones who all are positioned at the top level managerial positions in an organisation. There are several reasons such as political influences etc. which acts as a reason behind the positioning in an organisation. But leadership can be at the grass-root level too depending upon the competence and qualities. And so as per this fundamental nature, leadership can be understood as a non-hierarchical approach. The third basic fundamental is that leadership is relational which demonstrates that for becoming a leader and to have successful leadership, there is a need to have the associated followers (Western, 2013). Without having the followers, once cannot have leadership. And by this aspect there is a fundamental that leadership is relational. The following essay will highlight various styles of leadership and management and their respective impact over the organisation and the decision making process. By portraying the real life organisational examples, the later part of the essay will demonstrate the manner in which leadership is manifested in the global world (Schein, 2010).

Impact of leadership on the organisation and the decision making process

In the past decades, leadership was considered as an inborn human aspect which has its entire significance and major impact upon the leaders only. But with the change in theories and applications, leadership has it direct impact upon the employees and the organisational decision making. There are different types of leadership styles and each one has its diverse impact over the individuals and the organisation.

The first and the extremely argued leadership style is the autocratic leadership. In this form of leadership, the individual is more of a dictator instead of a leader who imposes direct orders and instruction on the followers. The decision making is impacted by this kind of leadership as the decisions are taken at a much faster rate as there is no kind of discussion which takes place before taking a decision (Boerner, Eisenbeiss and Griesser, 2007). The leader is the instructor or decision maker which takes the decision on his own grounds. The decisions taken have a positive impact upon the employees who are poor performers or are lethargic. But on the other hand, this imposes a negative impact upon the employees who are competent and capable enough to give suggestion md are hard-working. The organisation gets the outcomes on an immediate basis as there is no delay in decision making process but there are equal chances of failure or success (Asree, Zain and Rizal Razalli, 2010).

 


The second leadership style which is much discussed is the bureaucratic leadership. In this form of leadership style, the leaders are much relied upon the several leadership approaches and theories instead of their own leadership traits. This kind of leadership style is generally preferred in the organisations which works upon a set standard and do not need any kind of change or modification in the operations. For example, the organisations in the pharmaceutical industry work under this form of leadership as they need to have a similar kind of drug or medicine to be produced every time (García?Morales, Lloréns?Montes and Verdú?Jover, 2008). The organisational decision making is impacted by the bureaucratic leadership in both a positive as well as a negative way. The positive outcome of bureaucratic leadership is that there is delivered standard outcomes which supports the organisation in maintain the quality and the standards of the products and services. On the other hand, the negative implication is that apart from the pharmaceutical industry, if this kind of leadership is incorporated then it results in boredom and monotony. There is no innovative practices which h takes place in an organisation and thus the organisational productivity and the customer base both declines with an increasing rate. The morale and passion of the employees also set down and there comes a point of saturation at an early stage (Lee, et al., 2010).

The third leadership style which has a significant impact on the organisation and the decision making processes is the charismatic leadership. The form of leadership is well known as the transformational leadership style. In this kind of leadership, the leaders possess unique and natural leadership traits which cannot be easily copied by other individuals. These kinds of leaders are more of influencers in nature rather than a leader as they highly motivate the employees to work hard and achieve organisational goals. the decision making process is impact in a manner that the decisions taken by a charismatic leader is well supported by all the follower and the organisational members as there is formation of trust among the leader and the subordinates (Obiwuru, et al., 2011). The organisation gets positively impacted as the by the charismatic leadership, the employees get motivate to work beyond the ordinary performance and as a result there is enhanced organisational productivity. There is also takes place smooth decision making as there does not exist any kind of conflicts among the individual interest of the followers and the leader. Hence, it has been evaluated by several theorists that charismatic leadership is the best kind of leadership to be implemented in an organisation (Sarros, Cooper and Santora, 2008).

The next leadership style which gets the maximum support of the organisational members is the democratic leadership. In this form of leadership style, the primary objective of the leader is to develop trust among the employees. The employees are offered an opportunity to participate in the organisational decision making process (Steyrer, Schiffinger and Lang, 2008). They are given chances to share their ideas and viewpoints by which the organisation can achieve rapid and long-term gain. There is high level of employee engagement in the democratic leadership style. The organisation gets impacted with this type of leadership style in a very constructive and positive manner as the employees sense they are a vital part of the organisation. This results in higher organisational efficiency and productivity. It also develops a healthy and friendly working environment at the workplace which results in personal as well as professional development of the employees. The decisions takes are also of mutual acceptance and there is no kind of conflicts related to the judgments practiced. The positive outcome of charismatic leadership is efficient decision making, development of innovative ideas, motivated organisational staff, creative thinking, improved employee engagement, decrease number of conflicts and high retention rate of the employees (Nguyen and Mohamed, 2011).

 


The last but one of the much recognized leadership style is the laissez-faire leadership. In this form of leadership, the leader is actually a coach or a mentor which guides the employees regarding the decisions as the leader passes the decision making power to the highly competent and skilled staff who are capable enough to take decisions. There is delegation of authority to the employees for decision making. This impacts the organisation and the decision making process in both a positive and a negative manner (Walumbwa, et al., 2011). The positive aspect is that there is rapid decision making as the employees do not have to wait for the leader and his approval for taking any decision in case of any uncertainty or problematic situation. It also leads to improved motivation and engagement of the employees. The negative aspect is that if there will be delegated decision making authority to more number of employees then it may result in occurrence of conflicts as individuals can take decisions which benefits them the most. Thus, instead of working for the shared organisational goals, people will work for eth accomplishment of their individual goals (Ojokuku, Odetayo and Sajuyigbe, 2012).

All the leadership styles explained above have their positive as well as negative impact on the organisation and the decision making process. As all the organisations are diverse in nature, thus the leadership style must be chose according the type of organisation, the situation and the type of workforce present in the organisations so that maximum positive benefits can be availed from the leadership style followed in the organisation.

Demonstration of leadership manifestation in the leading global companies

Leadership is that vital element which has its presence in all types of organisations irrespective of their size and time of establishment (Northouse, 2012). There are several examples which demonstrate the leadership manifestation in many leading global organisation. The first example which shows the negative aspect of autocratic leadership in an organisation is the merger of the Chrysler and Daimler. The merger of both these automotive companies was a result of the autocratic leadership of the CEO of Daimler-Benz, Jürgen Schrempp. There was much internal opposition which took place because of the merger decision in the year 1998 (Daimler, 2017). But this was regarded as a bad decision for Daimler and the agreement was revoked back in the year 2007.  This shows that because of autocratic leadership, the organisations many a times takes inappropriate decisions too which leads to negative implications for the organisation in the long run (CampbellJo, Whitehead and Finkelstein, 2009). On the other hand, Apple Inc. is one of the most recognized examples of leading the consumer electronics industry. Steve Jobs, the founder of the organisation was considered as one of the most autocratic leader in the business world. But with a conformist and repressive leadership, there took place rapid success and growth of the organisation. This shows that the autocratic leadership style can also leads to huge progress.

 


Another example of the leadership manifestation can be realized by the application of bureaucratic leadership style at the organisations. The bureaucratic leadership can be seen in the government organisation or in the public services. The governments, various public sector organisations still follow the same rules; regulations are organisational culture which was followed back decades. This negatively impacts the development of the government organisations and the national economy. Due to bureaucratic leadership, all the procedures are sane. There is no change or adaptation of technologies and new procedures in an organisation. The bureaucratic leadership thus acts as the barricades in the success of the organisation. For example, Panasonic Corporation, one of the well-known companies in the electronic industry faced a huge downfall because of the reason that it stick to standardization and does not have innovations in its products as demanded by the changing time. The higher authorities remained bureaucratic in adopting different technologies (Solis2013). Thus, as a negative impact of this, the market share and the revenues of the company have fallen down with a high rate. One of the leading organisations, which have attained huge recognition by incorporating bureaucratic approach in the management and having standard services by preserving the cultural heritage, is Taj Group of hotels. The hotel has expanded in several overseas regions but has maintained the insights of the cultural heritage at each of its branches (Kamath, 2013). This demonstrates that the standardization and working over set standards and theories also leads to huge success.

The examples of charismatic leadership in the leading global organisations are increasing day by day. The organisational mangers and higher authorities are following the charismatic leadership at their workplaces so that they can have improved and enhanced brand recognition. There are several names in the corporate world that have attained huge success and organisational growth with their charismatic leadership. One of the prominent names out of those is of Mark Zuckerberg, the founder of the worldwide renowned social media site, Facebook. The corporate personality is analyzed as one of the most charismatic leaders across the world. The leadership traits of Zuckerberg are exceptional and unique which has made Facebook today as one of the largest corporation in terms of customers, revenues and global presence. The individual with his charismatic leadership has developed a bond of trust with its employees as well as customers and expanded its visibility across the globe. The decision making ability of Mark Zuckerberg is highly appreciated as the decisions taken by the corporate leader has enormous positive impacts over the workforce as swell as the individuals associated with Facebook (Petriglieri, 2012).

Another glimpse of leadership manifestation includes examples of leading global companies incorporating democratic leadership at its workplace. The corporate leaders who have followed democratic leadership in their business organisation have attained giant success and organisational development. Some of the well-known democratic leaders who have followed democratic leadership in the organisations are Indra Nooyi, the CEO of PepsiCo and Ginni Rometty, IBM’s CEO. Both the corporate leaders have established themselves as the recognized examples of democratic business leaders. Indra Nooyi, as a democratic leader has made the company as one of the largest beverage and food corporation. The primary aspects of the democratic leadership of Indra Nooyi comprises of building strong communication channels among the higher authorities and the organisational employees, continuous efforts for relationship building, motivate the employees and boost their morale. All these qualities of her signify her as one of the top democratic leader in the corporate world (centerforworklife, 2014).  The IBM’s CEO, Ginni Rometty, is also one of the famous democratic business leader as with her strong leadership she has made IBM one of the pioneering and renowned name in information technology industry. She practices the qualities and aspects of a highly democratic leader such as she has a great alignment with the workforce. All the organisational members are involved in the decision making process, they are offered an opportunity to give their suggestions or ideas for change and development. Thus, the democratic leadership at IBM has made the company developed into one of the most robust organisations (centerforworklife, 2014).

 


In the corporate world, there are also several leading organisations which have experienced leadership manifestations of the corporate leaders following laissez-faire leadership style. The most prominent example is Google and its laissez-faire leader Larry Page, the CEO of Alphabet Inc. which is the parent corporation to Google. With the continuous efforts and efficient leadership style of Larry Page, today Google is the most successful company across the globe which has come as a revolution in the world (larrypagebusinessleader, 2013). Just like a laissez-faire leader, Page empowers others i.e. his organisational employees to work for them, take organisational decisions of their units. He guides them with his sound and projected leadership. He makes every possible effort to bring innovation in the functions and business activities. The employees at Google are the leaders, evaluators and controllers of their own work. With such as supportive and laissez-faire leadership, Larry has empowered both the employees and Google to have continuous development and success (centerforworklife, 2014).

All the above examples show that in the business world also, there are present different styles of leadership as per the need of the business organisation. Every corporate leader has distinctive leadership qualities. Some have supported the growth of the organisation whereas some have resulted in the organisational letdown. But it shows that there is present leadership manifestation in the leading global organisations too (Selznick, 2011).

Conclusion

From the overall analysis of the essay, it can be stated that leadership is the most significant factor which directs the organisation towards the positive or the negative outcomes. Leadership plays a vital role at each and every phase of an organisation. It is the factor which provides a direction to the organisation to work effectively; it also acts as a source of motivation for the employees and their improved productivity. The development of innovative ideas, team spirit, increased morale, enhanced confidence and decrease conflict rates are the results of a sound leadership only. From the essay it can conclude that, all the give leadership styles i.e. democratic leadership, autocratic leadership, charismatic leadership, laissez-faire leadership and bureaucratic leadership have their respective importance and significance as per the type of organisation and business operations. All these leadership styles have diverse set of traits and characteristics which the leaders possess. There is a direct and significant impact of these different leadership styles on the organisation as well as on the decision making processes. The decision in an organisation gets affected by the kind of leadership followed in an organisation. From the analysis of the impact on the organisation, it can be identified that charismatic leadership and democratic leadership are the two leadership styles who have maximum positive outcomes in comparison of the rest three leadership styles. In present scenario, employees or the organisational individuals can be managed more efficiently through the democratic and the charismatic leadership styles. From the discussion of leadership manifestation in the leading global companies, it can be conclude that there are number of recognized and potential corporate leaders that have sound leadership traits which have resulted in rapid organisational growth. The both positive and negative aspects have been analyzed of the leadership styles possess by the business leaders in the global organisation. Lastly it can be stated that, all the organisations must give great emphasis upon the leadership factor for achieving long-term sustainability, employees’ engagement and enhanced brand recognition.

 

References

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García?Morales, V. J., Lloréns?Montes, F. J., & Verdú?Jover, A. J. (2008). The effects of transformational leadership on organizational performance through knowledge and innovation. British journal of management, 19(4), 299-319.

Haslam, S. A., Reicher, S. D., & Platow, M. J. (2010). The new psychology of leadership: Identity, influence and power. Psychology Press.

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Ojokuku, R. M., Odetayo, T. A., & Sajuyigbe, A. S. (2012). Impact of leadership style on organizational performance: a case study of Nigerian banks. American Journal of Business and Management, 1(4), 202-207.

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Sarros, J. C., Cooper, B. K., & Santora, J. C. (2008). Building a climate for innovation through transformational leadership and organizational culture. Journal of Leadership & Organizational Studies, 15(2), 145-158.

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Walumbwa, F. O., Mayer, D. M., Wang, P., Wang, H., Workman, K., & Christensen, A. L. (2011). Linking ethical leadership to employee performance: The roles of leader–member exchange, self-efficacy, and organizational identification. Organizational Behavior and Human Decision Processes, 115(2), 204-213.

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