Leadership Discussed In Management Studies And Organisational Psychology Business Essay

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In this age of globalization and ever increasing copitetion many firms have to trade a grate portion of their tradition in order to remain in business in the future. Such an overall change requires bold leadership. The leaders of the structural changes must implement a process that can ensures equity and due importance to the employees. Such changes are possible only when the leaders regularly peruse a policy of change in the organizations. The secret of organization has as much to do with vision, values and culture, as it depends on with vertical reporting structures. Ultimately the greatest of the challenges in meeting the renewal challenge is to change the culture of the organization. Culture is how we do things around us. Culture is often formalized in vision, values and mission. Leaders are expected to lead cultural change and to lead by example.

Leadership is one of the hotly discussed issues in management studies, social psychology and organizational psychology. Despite the depth and breadth of the subject regarding leadership effectiveness, it is still an unclear construct. As a result, researchers have not reached a consensus on a true and precise definition of leadership that represents an accurate depiction of effective leadership in all situations and possibilities. So how can these unclearities be overcome, and how do we answer the ever unclear question, what distinguish a manager from a leader. Research has covered a wide spectrum of trait models to contingency theories. More recently the transactional versus transformational leadership models have been at the forefront of leadership research.

Although no single perspective is totally accurate nor totally wrong, the answer to exceptional leadership remains unclear. The ability to cope with the new challenging situations such as increased global competition asks for the use of new leadership skills. While the technical skills of the leaders are still important, there appears to be a case for stressing general management expertise, entrepreneurship ability to look into the future and the acceptance of responsibility. In addition others have identified a need for interpersonal competence as it assists in learning new things about oneself and one's company. A prerequisite of interpersonal competence is self awareness, as it influence effectiveness and what the individual is able to see in the environment around him or her, how one evaluate it and how one deals with it.


The definition of leadership according to the Global leadership and Organisational Behaviour Effectiveness is " the ability of an individual to influence , motivate and enable others to contribute positively towards the effectiveness and success of organization of which they are members"

Appelbaum pointed out that out of all the different classical leadership models; there are two leadership models which emerge. One is characterized by a more directive, authoritarian style of management that focus on task and initiating structure. The other is characterized by sharing of information, participation, consultation, delegation and joint decisions making. The two styles are defined as task oriented leadership and as people oriented leadership.

The success of a transformational change depends on leadership commitment and roles. The success of these leaders depends more on vision than analysis, more on learning than knowing. Because this change is a move to unknown, transformational change involve a risk and demand active relationship with management. Major organsational transformations require two separate leadership roles; one that sponsors and champions the change and other that plants and implants the process.

The importance of strong communication of vision has also been identified as a must have skills for today's leaders, which are classified into three major groups. Core, managerial and corporate. Transformational leaders are leaders that are able to communicate effectively the vision of future with people oriented leadership styles.


Designing a superior organisational structure does not ensure success, rather efficient management and leadership with in a superior structure leads to success. That is leaders must have the necessary skills and abilities to influence employees behavior under the new structure as a necessary condition.


The role of managers versus leaders in the process of change is a critical issue. Leaders have different perspectives from mamnagers on the change in terms of;

1, Managers maintain the status quo; leaders find excitement in change.

Managers want fast answers; leaders fire off fast questions.

Managers are eager to learn so that they can get ahead; leaders establish learning enviroment so that others can get ahead.

Managers have a clear idea of the way things are done; leaders know what is really done and move into the unknown to see what can be done.

Leaders deal with vision, missions and the goals of the organization; managers are trained to keep the prganisation going on in a straight line

Organizational behavior

Organizational Behavior (OB) ideals with the study and application of knowledge about how people, individuals, and groups interact in an organizations. It does this by considering a systematic approach. That is, it looks into people-organization relationships in terms of the whole person, whole group, whole organization, and whole social system. It aim is to erect better associations by achieving human objectives, organizational objectives, and social objectives. Organizational behavior takes into account a wide range of topics, such as human behavior, change, leadership, teams, etc.

Elements of Organizational Behavior

The organization's base rests on management's viewpoint, morals, idea and goals. This in turn drives the organizational culture which is composed of the formal organization, informal organization, and the social environment. The culture determines the kind of leadership, communication, and group dynamics within the organization. The workers distinguish this as the quality of work life which directs their degree of inspiration. The final result is goal achievement, individual satisfaction, and individual growth and development. All these elements join to build the model or structure that the organization operates from.

Models of Organizational Behavior

There are four key models or frameworks that organizations operate out of, Autocratic, Custodial, Supportive, and Collegial:

Autocratic - The basis of this model is power with a managerial orientation of authority. The employees in turn are oriented towards obedience and dependence on the boss. The employee need that is met is subsistence. The performance result is minimal.

Custodial - The basis of this model is economic resources with a managerial orientation of money. The employees in turn are oriented towards safety , benefits and reliance on the organization. The employee need that is met is security. The performance result is passive collaboration.

Supportive - The basis of this model is leadership with a managerial orientation of support. The employees in turn are oriented towards job performance and contribution. The employee need that is met is status and recognition. The performance result is awakened drives.

Collegial - The basis of this model is partnership with a managerial orientation of teamwork. The employees in turn are oriented towards responsible performance and restraint. The employee need that is met is self-actualization. The performance result is moderate passion.

Although there are four break up models of organizational behaviour, almost no organization operates solely in one. There will frequently be a predominate one, with one or more areas over-lapping in the other models.

They have each evolved over a period of time and there is no one best model. In addition, the collegial model should not be thought as the last or best model, but the beginning of a new model or standard.

Social Systems, Culture, and Individualization

A social system is a multifaceted set of human relationships interacting in many ways. Within an organization, the social system includes all the people in it and their associations to each other and to the outside world. The behavior of one member can have an impact, either directly or indirectly, on the performance of others. Also, the social system does not have boundaries... it exchanges goods, ideas, culture, etc. with the environment around it.

Culture is the conservative behavior of a society that encompasses beliefs, traditions, knowledge, and practices. It influences human behavior, even though it hardly ever enters into their mindful thought. People depend on culture as it gives them security, understanding, and the ability to react to a given state of affairs. This is why people fear change. They fear that the system will become unbalanced, their security will vanished, they will not understand the new process, and they will not know how to react to the new situations.

Individualization is when employees effectively exert control on the social system by challenging the culture.

Organization Development

Organization Development (OD) is the methodical application of behavioral science facts at various levels, such as group, inter-group, organization, etc., to bring about planned change. Its objectives are a higher quality of work-life, efficiency, adaptability, and efficiency. It accomplishes this by changing attitudes, behaviors, morals, strategies, procedures, and structures so that the organization can adapt to competitive actions, technological advances, and the fast rate of change within the environment.

There are seven characteristics of OD.

Humanistic Values: Positive beliefs about the potential of employees .

Systems Orientation: All parts of the organization, to comprise structure, technology, and people, must work as one.

Experiential Learning: The learners' experiences in the training surroundings should be the kind of human problems they encounter at work. The training should NOT be all theory and lecture.

Problem Solving: Problems are recognized, data is gathered, remedial action is taken, progress is assessed, and adjustments in the problem solving process are made as desirable. This process is known as Action Research.

Contingency Orientation: Actions are selected and adapted to fit the need.

Change Agent: Stimulate, facilitate, and coordinate change.

Levels of Interventions: Problems can occur at one or more level in the organization so the policy will require one or more interventions.

Quality of Work Life

Quality of Work Life (QWL) is the favorableness or unfavorableness of the job environm. Its purpose is to develop jobs and working condition that are outstanding for both the employees and the organization. One of the ways of accomplishing QWL is through job design. Some of the options available for improving job design are:

Leave the job as is but employ only people who like the rigid environment or routine work. Some people do enjoy the security and task support of these kinds of jobs.

Leave the job as is, but pay the employees more.

Mechanize and automate the routine jobs.

And the area that OD loves - redesign the job.

When redesigning jobs there are two policies are to follow - job enlargement and job enrichment. Job enlargement adds a more diversity of tasks and duties to the job so that it is not as repetitive. This takes in the breadth of the job. That is, the number of different tasks that an employee performs. This can also be accomplished by job rotation.

Job enrichment, on the other hand, adds additional motivators. It adds depth to the job - more control, liability, and discretion to how the job is performed. This gives higher order needs to the employee, as opposed to job enlargement which simply gives more diversity.

The benefits of enriching jobs include:

Growth of the individual

Individuals have better job satisfaction

Self-actualization of the individual

Better employee performance for the organization

Organization gets intrinsically motivated employees

Less absenteeism, turnover, and grievances for the organization

Full use of human resources for society

Society gains more effective organizations

There are a variety of methods for improving job enrichment:

Skill Variety: Perform different tasks that require different skill. This differs from job enlargement which might involve the employee to perform more tasks, but require the same set of skills.

Task Identity: construct or perform a complete piece of work. This gives a sense of completion and responsibility for the product.

Task Significant: This is the amount of impact that the work has on other people as the employee perceives.

Autonomy: This gives employees discretion and control over job related decisions.

Feedback: Information that tells workers how well they are performing. It can come directly from the job (task feedback) or verbally form someone else.


1. ORGANISATIONAL CHANGE; To endure and cover perpetuity, organizations must barter a larger parts of their sheltered traditions for the new paths into the future. Organizations practice three types of lasting change;

Developmental change, natural growth.

Transitional change; evolve slowly to a known state.

Transformational change; moving into the unknown.

An organizational change in which the organization evolves slowly is called transitional change. However when faced with numerous challenges at the same time nearly all corporate leaders become conscious that controlled series of transitional changes just won't move their organizations fast enough.

When transitional changes are not sufficient organizations need to move to a fundamentally different and sometimes unknown future position in what is apparent as one big change. This process is defined as transformational change.

The transformational change that some companies are faced with after its attainment and during its integration may result in some turnover of employees afraid of the unknown future.

2. ORGANISATIONAL STRUCTURE; The vital challenge of organization design is to divide the assignments of the firm into controllable, specialized jobs, yet coordinate the tasks so that the firm reaps the benefits of melodious action. One solution for this challenge is to use a matrix organizational structure also characterized by cross-functional teams.

The principal advantage of these organizational structures are their efficacy for coordination or integration, optimal use of technical specialists in project management, and elasticity in creating cross-functional teams to meet project necessities.

On the other hand all matrix forms have intrinsic flaws and that CEOs approve the matrix because they believe the strengths overshadow the flaws. Matrix organizations are usually adopted for four major reasons.

To allow companies to focus on multiple business goals.

To facilitate the management of informations.

To enable companies to establish economies of scale.

To speed response to environmental demand.

However the matrix structure exhibits common charteristic, namely twofold lines of authority, liability and accountability that violates the conventional one- boss principle of management. Therefore matrix structure requires well-built horizontal integration through communication and coordination between departments.


Organizational culture is the precise collection of ethics and norms that are common to the people and groups in an organization and that control the way they work together with each other and with stakeholders outside the organization. Organizational ideals are beliefs and ideas about what kind of goals members of an organization should track and ideas about the suitable types of conduct organizational members should use to achieve these goals. Organizational values develop organizational norms, guiding principle or outlook that lay down fitting kinds of behavior by employees in particular situations and hence control the behavior of organizational members towards one another.

Three levels of organizational culture are recognized; artifacts, values and basic assumptions.

Artifacts refer to the visible symbols of culture, including personal enactment, ceremonies and rites.

Values reflects people's underlying beliefs of what should or should not be.

Assumptions are the deeply held beliefs that guide behaviour and tell members how to perceive and think about things.

An organization's culture is self-possessed of the aspects of the organization that give it a particular environment or feel. Culture is to organization what personality is to individual. It is that unique collection of beliefs, values, employment styles and relationship that differentiate one organization from another.


Numerous researchers have examined the effects of jobs enjoyment on worker satisfaction and turnover. In particular, it is well well acknowledged that employees satisfaction is closely correlated predictor of turnover. The loss of employees is a disrupting event. Organizations often pursue new ways to reduce employees turnover, often with some degree of success. Aspects relating to the nature of work itself, such organizational commitment, compensation, overall job satisfaction, and job involvement, could also affect employee turnover.

People select jobs on the basis of values congruence. Employees were more likely to leave an organization if their personal attributes do not fit with one's job. Some of these factors include;

The extent to which people have links to other people.

The extent to which their jobs and communities are similar to or fit with the other aspects in their life spaces.

The ease with which links can be broken- what they would give up if they left, especially if they had to physically move to other cities.