Concepts Leadership And Their Relationship To Business Business Essay

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Mr. David Johnson represents himself as a fun loving person who loves to laugh with his staff members. He is a good a good communicator as he always tries to match the thinking capability of the listeners. His ability to communicate properly helps to point out issues. He set the smart objectives every month and motivates team to achieve it. All these points help him to create appositive environment and a great working relationship with staff members. He is delegative and explains the duties and responsibilities of the staff members clearly.

He is enthusiastic and passionate person who loves to involve the team into different processes because team members are the essential part of the organization. He provides equal opportunities of his employees.

Traits

He is very honest, loyal and humble person. He is determined to achieve the goal by its hard work and confidence. He encourages the employees to be trustworthy by being the role model. He is always ready to accept his mistakes and ready to improve them. He is very energetic and handles his responsibilities in a good way. He avoids advance judgments. He allows staff members to provide their feedback on almost all the issues that are related to employees and their organization. He is goal oriented and an opmistic person.

Skills

He is a great planner and problem solver. He plans strategically by keeping the goals of the organization in mind. He made quality decisions with his knowledge and experience he shows that how he can enforce the decisions effectively. He always understands that where he need to provide the control to others and when he have to use the powers. His interpersonal skills help him to convey his message easily.

Attitudes

Mr. Johnson is very inspirational personality. He inspires others by showing his great enthusiasm he spreads the personal and staff achievements and celebrate increase the morale. His attitude of equality is very much inspirational and giving motivation among employees. He accepts the feedback and ready to handle the situation. He says that every person must be opmistic and hard working to create appositive environment. His "can do" attitude brings success for him.

Knowledge

Mr. Johnson is very much aware of the organizations culture. He observes and analyses the skills and behavior of staff members for further improvements. He is always ready to learn with confidence he knows the value of good leader because the leader is the role model of the employees. He is a quick learner and can overcome the bad situations easily.

Contemporary development

He is good leader he tries to learn from his mistakes whenever he comes to know about his mistakes he tries constantly to overcome them. His leadership skills are improved overtime. He motivates the employees constantly because of the great leadership and workforce. He got some big orders from the local businesses due to his proper management and motivational skills. One of his stores was in top 10 in 2011 for rapid sales.

How the leader's characteristics relate to business:

Comparison of leadership concepts -

Leader Behavior-

The most desirable characteristics of a leader include fairness, authenticity, good communication, positive attitude etc. the leadership characteristics of Mr. Johnson are very much same as what is needed for the effective leadership. His relationship qualities with everyone are quite similar to a good leader. He understands the role of the leader in the organization. He knows that the leader is the role model for the employees he easily understands the situation and ready to boost the morale of the staff members. He is fair and trustworthy. His interpersonal skills make him very effective and efficient leader. His positive attitude towards employees removes the obstacles between them.

Leader Traits-

The most desirable trait of a leader include positive expectations, trust, focus and result oriented. Mr. Johnson is very much close to these qualities he is visionary and sees his workforce as an asset for the long run. His positive expectations bring shareholders close to him. He has very influential personality which makes him helps in decision making. His positive personality helps to grow good relationships. His employees are very much close to good leaders and he is very much effective in his leadership skills.

Leader Skills-

Leadership skills are very much needed to run any organization effectively. Leadership skills include dedication, creativity, communication, sense of humor. Johnson is very much skillful in leadership skills which makes him effective leader. His conceptual skills help him very much to run the business efficiently. These kinds of skills are considered to be the most desirable characteristics of any effective leader.

Leader Attitudes-

The key attitude for effective and efficient leadership includes positivity, humanity, love and affection, sympathy and compassion, open mindedness etc. These attitudes are most desirable in business environment. The positive attitude of the leader opens the door of success. The attitude of Mr. Johnson is quite similar with the most effective leader. He is very open minded and loving person. He shows his affection towards employees and takes care of them. His professional attitude is upto the standards which makes him an efficient leader.

Leader Knowledge-

Effective leadership characteristics also include the knowledge concept of the leadership. Knowledge could be of anything like business area, growth, strength, weaknesses and threats. Mr. Johnson is quite adaptable his behavioral skills help him to gain knowledge about the required areas and learn quickly. He is visionary and can see the long term benefits. He holds the full knowledge of his field.

Contemporary Development-

Mr. Johnson is very skillful and knowledgeable person. He handles ambiguity properly and provides better solutions. He is very passionate about the business. One of his stores was selected in top 10 in New Zealand last year in 2011 for rapid sales in food industry. Although he is very good leader but he is continuously learning and improving his leadership skills where needed.

2. a. The Levels of Management and the respective Leadership Styles being practiced:

There are three levels of management in Johnson ltd. these are explained below:

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Top level Management - this level of management consists of David Wikipedia Johnson as the director of the organization. He deals with all the administration and defines policies, procedures for the organization. The style of leadership is participative or democratic.

Middle level management- This level of management consists of store managers of Johnson ltd. owns three stores and they have two different managers. They make the policies and do the day to day administration jobs in their respective stores. The style is a mixture of participative and delegative leadership styles.

Top level management- It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goal and policies for an enterprises. It devotes more time of planning and co- coordinating functions. Top management lays down the objective and broad policies for the enterprise.

b. How the identified leadership styles relate to business:

Leadership style is the manner and approach of providing direction, implementing plans, and motivating people.

• Autocratic style is being used which in some cases is effective but to be more effective I think they should approach declarative style for some cases. This style keeps the employees in touch with the organization and keeps them motivated.

• Managers form low level, they need to follow different approach like delegation to be a leader and it didn't bother if they have their own style.

Lower level have their own unique way for management and the senior authority should be stand with them, so that they feel the part of entire organization.

Stage of Business Life Cycle:

The 7 stages of business life cycle

Business Life Cycle

Mr. Johnson's business is on expansion stage. He is providing good quality of food to their customers with good customer service and customer satisfaction. He is earning lot of profit and his business is running well. Now he decided to open a new soha spice restaurant under the name of Johnson ltd. in new Lynn. In my organisation there is autocratic type of leadership style where control is necessary, often where there is little margin for error. When conditions are dangerous, rigid rules can keep people out of harm's way. Many times, the subordinate staffs are inexperienced or unfamiliar with the type of work and heavy oversight is necessary.

Three different life cycles are: Growth, Maturity and decline

Growth: Growth is initial phase in any company but it is one of the major steps and every company made their plan for complete growth. Growth rate decides the market value of any company.

Maturity: It is one of the very important parts, it stuck only when business made a solid position in market and wants to stay for long time but growth is stable at specific point. so needs to be finalize and take proper steps.

Decline: In this phase organization needs proper planning and systematic approach to b stable in the market. Suppose any organization wants to stable in the market then they need consistent growth and planning, if they don't have these two then sure business will stuck at some point.

Leadership styles those are most effective for different stages in a business life cycle:

Authoritarian

The authoritarian leadership style is when the leader spends most of his time giving out instructions. This type of leader tells their followers what to do, how to do it and when to do it.

The authoritarian leader exerts high power over the followers and do not obtain the advice or opinions of others. All decisions are made by him and he does not encourage the followers to participate or offer their opinions.

In my organization there is autocratic type of leadership style where control is necessary, often where there is little margin for error. When conditions are dangerous, rigid rules can keep people out of harm's way. Many times, the subordinate staffs are inexperienced or unfamiliar with the type of work and heavy oversight is necessary. The owner of organization is using autocratic type of leadership.

e. Mission, vision, purpose and strategy of the leader's organization:

Mission-A mission describes the organization's basic function in society, in terms of the products and services it produces for its customers. To create your mission statement; first identify your organization's "winning idea". The purpose of my organization is to accomplish the goals and objectives as indicated within the organization's vision statement. The main mission of my selected organization is to give best quality of food to the customers and to serve them with smile. As customers are the king of any organization if you treat your customer happily with best quality then customers with always be remain loyal to the organization.

Mission statements

Advantages

Curtails business losses caused by lack of proper preparation

The model focuses on the acceptance and preparedness of those people involved, not only on the change itself. This makes the actual transition realizable, enhancing the chances of success

Disadvantages

There may be opportunities that can be missed out because not everyone is involved in the co-creation of vision. Decisions and visions are coming from the top management

The management cannot skip any of the 8 steps. If so, the process will not produce the expected result

Pryor's 5P's Model

This explains the establishment of strategic direction through the alignment of 5 elements: Purpose, Processes, Principles, People, and Performance. Purpose comprises the organization's mission and vision, objectives, goals, as well as their strategies. Processes are the structures, systems and procedures, including the rules and infrastructures being used in business operations. People are the individuals and teams who perform in consistency with the Processes and Principles of the organization to serve its Purpose. People will be most effective if the Purpose, Processes, and Principles are clearly understood. Performance is the measurement that suggests the organization's standing, which are used as criteria for decision making.

Advantages

Can be applied along with a variety of leadership and management theories, concepts and tools

Provides a complete analysis of the outcomes that allows constant improvement.

Disadvantages

Having no complete understanding on the leadership and management concepts, the management applying this model may have slim chances of successfully implementing the change

McKinney's 7S Model

of your proposal/plan

5. Bring forward the goals and expectations

- put emphasis on the expected outcomes

6. Collect their agreement to the plan

- If there are suggestions from the team, consider them if you believe they are helpful

- deal with disagreements right away

7. Implement change

- Motivate people to carry out the strategy as planned

8. Collect feedback after implementation

- how the staffs feel towards the process, what were their learning's, and discuss how everybody should deal with it to keep progressing

9. Evaluate and keep improving

- analyze results and look for those which need

v. Reasons Why People Resist Change:

1. Fear of the Unknown

2. No enough understanding about the need for change

3. Lack of competence

4. Benefits and rewards

5. Low trust

6. Change in status quote.

vi. Recommendation for a Suitable Change Model

John Kotter's 8-Step Change Model

Justification:

This model is recommended because it suggests that, for a change to be successful, people who are involved should considerably "buy into" the change. The concept is relevant for the current situation: resentful behaviour of employees.

Reason why it is the best choice for her organization:

The main objective is for my colleague to implement changes while having to maintain the willingness of her staff. Considering these 8 steps and provided that everybody bought-in, she will be able to get full support from her staff.

The Role of the Leader:

Understand and practice facilitative leadership.

Develop a situational leadership plan.

Balance advocacy and inquiry skills to achieve effective situation analysis.

Recognize your most productive leadership style and your weaknesses.

Make decisions based on each situation, its context, and the people involved.

Decode complex people issues.

Enhance leadership tools and processes to improve the performance of others.

Change Strategies

Increase urgency - inspire people to move, make objectives real and relevant.

Build the guiding team - get the right people in place with the right emotional commitment, and the right mix of skills and levels.

Get the vision right - get the team to establish a simple vision and strategy, focus on emotional and creative aspects necessary to drive service and efficiency.

Communicate for buy-in - Involve as many people as possible, communicate the essentials, simply, and to appeal and respond to people's needs. De-clutter communications - make technology work for you rather than against.

Empower actions - Remove obstacles, enable constructive feedback and lots of support from leaders - reward and recognise progress and achievements.

Create short-term wins - Set aims that are easy to achieve - in bite-size chunks. Manageable numbers of initiatives. Finish current stages before starting new ones.

Don't let up - Foster and encourage determination and persistence - ongoing change - encourage ongoing progress reporting - highlight achieved and future milestones.

Make change stick - Reinforce the value of successful change via recruitment, promotion, and new change leaders. Weave change into culture.

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Part B2: Evaluation of Leaders from Different Organizations

Arcelor Mittal

Headquarters: Luxembourg, with offices in 60 countries

Sector: Steel

Turnover/Profit: US $105.2 billion / US $19.4 billion (2007)

Owned by: Publicly-traded in Amsterdam (MT) and Brussels

Employees: 310,000

CEO: Lakshmi Mittal

State

Leader1

Leader2

Name

Mr. David Johnson

Lakshmi mittal

Owner

He is the owner of 3 fast food restaurants in new Zealand

He is the owner of all steel organization empire all over the world

Size of organization

This is a small sized business organization with low assets and liability.

This is the large sized business organization with huge assets and liability.

Nature of organization

Nature of organization is profit sharing

Both aims to earn profit for the organization.

Evaluation and Comparison

Criteria

(large org)

(small org)

Leaders

Lakshmi mittal. The chairman and CEO of Arcelor Mittal and one of the world's wealthiest billionaires. Mittal is credited with helping to globalize the steel industry's business model.

David Johnson. Owner of three soha spice restaurants in new Zealand. He is new Zealander kiwi. He owns the small organization with limited assets and liability.

ii. Forms of power available to each leader

a. Referent Power

Maintains attractive personal qualities and he is admired by workers and employees.

Serves customer with smile. He is admired by his customers for his best customer satisfaction and quality of food.

b. Expert Power

Expert in business from over 30 years of experience. Provides expertise in others.

Having more than 5 years of experience in serving customers. Expert in quick decision making.

c. Legitimate Power

Makes the decision for the large organizations with the help of board of directors. It takes time to make decisions.

Makes quick and reliable decisions for small organization alone and always keen to fulfill the demands of the customers.

d. Information Power

He had lots of information about the things he was doing and he was well qualified person. He operates large organization so he is having broad information about the business.

He is very educated and knew a lot about different skills and different theory about how to manage ,how to motivate staff.

e. Reward Power

Has the authority to give rewards or bonuses to employees or managers for achieving the target of the organization.

Giving rewards to managers and staff members for their hard work and satisfying customers.

f. Coercive Power

Difficult for him to punish any person because he don't know all of their staff personally.

Staffs are in secured about their job and owner has the power to punish them and to fire them from job.

iii. Cultural and/or ethnic factors that may have influenced their leadership

He is from India where high power distance follow but he is not following high power distance as he is very easy to communicate in short follow low power distance culture. He is very hard working and caring.

He is very hard working and honest person. He wants everything on right time and on right place. He is very conscious about time. His cultural and ethical factor makes his business profitable. He always motivates his staff to do hard work.

iv. The nature of the organization the leader has evolved with and how the type of organization did influenced their leadership

The aim of the organizations is to earn profit by producing quality steel for their customers. They produces tonnes of steel which is used in all the industries like automobiles, IT industry, construction etc.

Both organizations aim to earn profit with customer satisfaction. They serve their customers with best quality of food and profit oriented. Always ready to listen the demands and complaints of the customers and try to get it.

Leadership Concepts

a. Behaviors

Focused and Caring- because he kept in mind that his main motive is to produce steel and to satisfy customers and to earn profit for the expansion of the business.

Mr. David Johnson represents himself as a fun loving person who loves to laugh with his staff members. He is a good a good communicator as he always tries to match the thinking capability of the listeners. His ability to communicate properly helps to point out issues.

b. Traits

Mr. mittal is very honest, polite, and hard working person. Mittal's career began by working in his family's steel making business in India, and he has since acquired more than 30 years of experience in steel and related businesses. In 1976 he founded Mittal Steel Company, eventually merging with Arcelor in 2006 to form Arcelor Mittal. In addition to his work in the steel industry, Mittal is a philanthropist and is a member of numerous boards and trusts.

Honest: I can say he is honest person after interviewing him because he always tells staff members how they can achieve higher position and always tells them what should they have to do and which things will be make a bad impact on them .he always tells them about these type of problems.

Straight forward: He is very energetic and handles his responsibilities in a good way. He avoids advance judgments. He allows staff members to provide their feedback on almost all the issues that are related to employees and their organization. He is goal oriented and an opmistic person.

c. Skills

The world's largest steel company, of which he owns some 40 percent. As chairman and CEO of this global steel empire, his company faced recent increases in raw materials and with the European debt crisis, a severe drop in demand for his product. He faces many ups and downs on his business but due to his kills and over 30 years of experience he handled them calmly and politely.

Motivational skills: He always give motivation to his staff members. . Johnson is very much skillful in leadership skills which makes him effective leader. His conceptual skills help him very much to run the business efficiently. These kinds of skills are considered to be the most desirable characteristics of any effective leader.

Communication skills: He can speak three different languages. He can speak Hindi, Punjabi and English. so he can talk easily with the staff members in English because mostly staff members are from English speaking countries.tha staff members whose are not good in English, mostly they are from his country so he can talk with them in their own language.

d. Attitudes

View a problem as a challenge, an opportunity for new experiences to expand your problem-solving repertoire.

Focus on the present and future obstacles, and deal with those you can do something about. When obstacles appear to be insurmountable: question the goal, and if necessary, modify it.

Pay attention to the distinction among facts, opinions and judgments. First get the facts, then interpret them. Don't judge the facts before you do that analysis.

The attitude of Mr. Johnson is quite similar with the most effective leader. He is very open minded and loving person. He shows his affection towards employees and takes care of them. His professional attitude is upto the standards which makes him an efficient leader.

Strict: he is strict too. if any type of rude behaviour or any other mistake made by staff members, he can't tolerate.

e. Knowledge

He is having very vast knowledge about the business because he owns the steel tycoon of the world his business spread over more than 60 countries and earn billion per year. He also has the knowledge of different countries and their culture.

Mr. Johnson is quite adaptable his behavioral skills help him to gain knowledge about the required areas and learn quickly. He is visionary and can see the long term benefits. He holds the full knowledge of his field

Knowledge of different languages: Knowledge of different language is one of added feature and he is one of person, who can easily speak different language. With this he can easily understand clients from different country and easily get the project.

f. Contemporary Developments

He handles ambiguity properly and provides better solutions. He is very passionate about the business. Due to his past 30 years of experience he handles everything well and effectively.

He handles ambiguity properly and provides better solutions. He is very passionate about the business. One of his stores was selected in top 10 in New Zealand last year in 2011 for rapid sales in food industry. Although he is very good leader but he is continuously learning and improving his leadership skills where needed.

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