Leadership Concepts And Their Relationship To Business Commerce Essay


The Business leader identified is Mr. David Wikeepa Williams, the Director of RODA Ltd, NZ. He owns two Subway restaurants under the name of RODA Ltd. The interview was done through a telephone conversation.

a). Five Leadership Concepts


Mr. Williams represents himself as a fun loving person who loves to laugh with his staff members. He is a good communicator as he always tries to match the thinking capability of the listener. 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 a positive 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 to his employees


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He is very honest and loyal. He is determined to achieve the goals by 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 energetic and handles his responsibilities well. He avoids advance judgments. He allows staff members to provide their feedback on almost all the issues that relates to employees and organization. He is a goal-oriented


He is a great planner and problem solver. He plans strategically by keeping the future goals in mind. He makes quality decisions with his knowledge and experience. He knows that how he can enforce the decisions effectively. He is also very delegative. He clearly understands that where he needs to provide control to others and when he have to revoke the powers. His interpersonal skills help him to convey his message easily.


Mr. Williams is very inspirational personality. He inspires others by showing the passion, enthusiasm. He spreads the personal and staff achievements and celebrates them to increase the morale. His attitude of equality is very much inspirational as it provides motivation among employees. He accepts the feedback and ready to improve the situation. He says that every person must be optimistic and hard working to create a positive environment. His "Can Do" attitude brings success for him.


Mr. Williams is aware of the organization's culture. He observes and analyzes the skills and behaviors of the staff members for further improvements. He is always ready to learn with confidence. He knows the value of a 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 Developments

He is a good learner. 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 over time. He motivates the employees constantly. Because of the great leadership and workforce, he got some big orders from the local businesses. One of his stores was in top 10 in 2011 for rapid sales.

b). Comparison of Leadership Concepts


The most desirable characteristics of a leader include fairness, authenticity, good communication, positive attitude etc. The leadership characteristics of Mr. Williams are very much same as what is needed for the effective leadership. His leadership qualities are quite similar to a good leader. He understands the role of the leader in organization. He knows that the leader is the role model for the employees. Mr. Williams 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 toward employees removes the obstacles between them.


The most desirable traits of a leader include positive expectations, trust, focused and result oriented. Mr. Williams 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 his stakeholder close to him. He has very influential personality which makes him strong in decision making. His positive personality helps to grow good relationships. His traits are very much close to the good leaders and he is very much effective in his leadership style.

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Leadership skills are very much needed to run any organization effectively. The desired leadership skills include dedication, creativity, communication, sense of humor etc. Mr. Williams 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.


The key attitudes for effective and efficient leadership include positivity, humility, love and affection, empathy 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. Williams is quite similar with the most effective leader. He is very open-minded and loving person. He shows his affection toward employees and takes care of them. His professional attitude is up to the standards which makes him an efficient leader.


Effective leadership characteristics also include the knowledge concept of the leadership. Knowledge could be of anything like business area, growth, strengths, weaknesses, opportunity and threats. Mr. Williams is quite adaptable. His behavioural 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 Developments

Mr. Williams is very skillful and knowledgeable. 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 a very good leader but he is continuously learning and improving his leadership skills where needed.


a). Levels of management

There are three levels of management in RODA Ltd. These are explained below:

Top Level Management: This level of management consists of David Wikeepa Williams 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 generally consists of Store Managers. RODA Ltd. owns two stores and they have two different managers. They make the policies and do the day to day administration jobs for their respective stores. The style is a mixture of Participative and Delegative leadership.

Lower level Management: This level normally consists of Assistant Managers, Team Leaders and supervisors. They are closest to the production line in the stores. They describe the jobs to new employees, monitor the staff members and provide solutions for problems. They also have the Democratic style.

The good leaders use all the leadership styles on different situations as a mixture. Here in this situation, the leadership style used is more democratic and participative. There is very less degree of authoritarian style. As the leader of the organization is very friendly and democratic, he loves to spread that style in his organization.

b). Contrast the current thinking

The leadership Style at RODA Ltd is Democratic/Participative. This leadership style is the most popular because this includes the participation of staff members in decision making process.

If the staff members are involved in the decision making phase then they performs well with less supervision. This also increases their morale and confidence. The employees are very experienced and bring in a lot of knowledge as they are specialized in what they do. There experience could help in making better decisions for future improvements.

c). Stages of Business Life cycle

There are mainly 4 stages of life cycle of any business. These are given below:

Formative Stage: This is the stage when a new organization is formed.

Growth Stage: This is main stage in which the business grows rapidly.

Maturity Stage: Maturity stage comes in business life cycle when the business grows on a constant level after the rapid growth period.

Declining Stage: This stage arises when business crosses its maturity stage. At this stage, organizations start down-sizing or re-organizing the business.

So after discussing the above given stages of business life cycle, I can say that my leader's organization RODA Ltd. is currently at the growth stage.

d). Contrast the Current Leadership Style

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The current leadership style in RODA Ltd. is Democratic. This leadership style is the most successful style and commonly adopted by great leaders. Using this style, Mr. Williams is able to run his business effectively and efficiently. He leads the staff members to achieve their goals. His democratic leadership style keeps him closer to the staff members and they can communicate clearly. Most common problems that are found in any business are the communication problems. So using the democratic style, he is able to avoid such problems. He is very open with all the workers to discuss the problems and opportunities. The democratic style allows more team involvement which helps the leader to understand the feelings of the lower level by their feedback and suggestions. This helps in creating strategic planning. Leader can think about expanding the business if he knows that the staff is with him.

e). Mission, Vision, Purpose and Strategy

Mission: Delight every customer so they want to tell their friends - with great value through fresh, delicious, made-to-order sandwiches, and an exceptional experience." 

Vision: Be the #1 Quick Service Restaurant (QSR) franchise in Hamilton, while delivering fresh, delicious sandwiches and an exceptional experience."

Purpose: The Purpose of the organization is to provide highly fresh and healthy fast food in the area.

Strategy: The "We Can" attitude is the core strategy which shows the team involvement.

f). Leadership characteristics linking to furthering Business Strategy

The leadership characteristics of Mr. Williams are very much linked to his strategic planning for future. He is well planned, organized, great communicator, passionate and visionary person. His business strategies include the team involvement. He sees his workforce as assets for the organization. His positive attitude toward employees makes a real difference. He takes care of his employees and in return, the employees work really hard and honestly to increase the sales and profit. He behaves well with his workers and customers. He has the ability to keep the employees motivated and gets the best out of them. His interpersonal skills are appreciated by everyone. So with all these skills and qualities he tries to analyze the situation and improve or change his business strategies for future.

g). Most Effective Leadership style for furthering Business Strategy

The most effective leadership style for furthering the business strategy is the democratic style of leadership. This style is most effective and efficient because it involves the team of staff members as well as administration. This type of leadership helps to generate the best possible solutions to implement any new strategies and develop the business. The leadership style in RODA Ltd is also democratic/participative. Staff members get a chance to take part in decision making process so that the administration can get their suggestions. If the whole team is working towards a common goal then strategy implementation is easy. Staff members feel more valuable if they are involved in the decision making process. More ideas bring more opportunities. So this leadership style helps in furthering the business strategies.

Part B: Research, Compare and Evaluate Leadership Concepts

Part B1

Three models of change

Kotter's 8-step Change Model

This change model was introduced by John Kotter. He developed the 8-step model in his book "Leading Change" in 1995. These 8-steps are given below:

Create Urgency

Form a Powerful Coalition

Create a Vision for Change

Communicate the Vision

Remove Obstacles

Create Short-term Wins

Build on the Change

Make Change Stick

Lewin's Change Model

This 3-step change model was introduced by Kurt Lewin. He was born in Germany and then he immigrated to America. It helps to overcome the stage of inertia and change the existing mind-set. It is simple framework for managing change. The 3-steps of the model are given below:




McKinsey 7-S Change Model

This change model was developed by Tom Peters and Robert Waterman in 1980's. They were working in McKinsey Consulting Firm. The model has 7 elements and is divided into Hard Elements and Soft Elements. This model is very useful to improve the performance, implement a strategy, study the possible effects of future changes. The 7 elements are given below:

Hard Elements




Soft Elements

Shared Values




Advantages and Disadvantages of Change Models

Kotter's 8-step Change Model


Clearly defined steps which are easy to understand.

Suitable for classical hierarchy culture


It is linear, top to down model which is the biggest disadvantage.

It can lead to frustration and resistance among employees if there is no consideration for individual needs.

Lewin's Change Model


Simple, easy and practical change model.

It is still widely used because it is more efficient.


At the time of refreeze, some employees may face change shock which could affect their efficiency.

There is no space for human feelings or experiences.

McKinsey's 7-S Change Model


It is a great diagnostic tool to examine the inner strengths of any organization.

It combines rational and emotional elements to cover all the aspects.


It is a parallel and interrelated process. Managers must act on all the Ss.

The concept of effectiveness and performance is not explicit in this model.

iii. Outline of Change Implementation Process

Change Implementation Process is a very critical process because the change should be implemented in such a way that it should not degrade the performance and efficiency. All the changes should be identified and planned before the implementation process starts. Some steps are given below to implement change:

Step 1. Define Change Implementation Process.

Step 2. Accept All Change Requests.

Step 3. Plan to Implement Change.

Step 4. Implement Change and Monitor.

Step 5. Evaluate and create a report of Change process (After Implementation activities).

Step 6. Modify Change Implementation Plan if needed.

iv. Steps for colleague

To implement the change properly, my colleague must follow the above given steps in the same way as they are given. These steps are explained below with examples and suggestions which make them easy to follow.

Step 1. Define Change Implementation Process: My colleague must define the change implementation process. She should develop a plan to handle the change. In the plan she must develop the procedures to arrange, request and implement the change process. She should also consider the backing out changes and to improve them. She must define the roles and responsibilities to the staff members. For example, she must plan everything before implementing the change process including the emergency situations that may arise because of the change implementation.

Step 2. Accept All Change Requests: My colleague must accept all the change requests. This process brings team involvement in change implementation process. She should consider every employee and their suggestions. For examples, she can ask the employees to provide their requests for change so that she can understand what needs to be done and what can be done, effectively and efficiently.

Step 3. Plan to Implement Change: She should implement the change process on priority basis. She must check that which changes are more important to implement. She must consider the resource utilization for implementation of change. The whole procedure must be scheduled properly to avoid any problems. If any problem arises then she should be able to follow the back-out procedure to avoid further problems.

Step 4. Implement Change and Monitor: This is the main step where she should apply the changes and monitor the complete implementation. She should be able to monitor the whole process and to check if the desired results are achieved or not. If the changes are not exactly the same as she planned, she must be able to go back to the old system.

Step 5. Evaluate and create a report of Change process (After Implementation activities): She must be able to evaluate and create a report of the change process and check if the planning was successful and how the resources are being used. It is very important to write the whole process even if it is not completely successful. Documentation is vital as it gives a solid foundation for further planning process of change.

Step 6. Modify Change Implementation Plan if needed: She must be able modify the complete change process to make it more effective and efficient if needed. She must examine the process to check where the actual problem exists. She must check if it is a planning, management or implementation problem.

v. Reasons of Change Resistance

Most of the people show unwillingness to change. There are many reasons that people resist change. They are explained below.

Lack of Knowledge: It is big reason to resist change. If people don't have enough knowledge about the change process and practices they wouldn't like it. People don't want to become novice again. So they resist change.

Lack of Trust: People do not trust their leaders and managers. They think the leaders will not be able to do something productive with this new change. Also they have very less trust in new change process.

Comfort: People don't want to leave their comfort zone and try something new. So they resist change. They just want to stick to the same old fashioned process where they know everything.

Fear: This is the biggest reason to resist change. Fear could be from many reasons like fear to change of designation, fear to lose job if they cannot perform well, fear of losing status, power and fear that the new system may or may not work properly.

Personal Preference: Some people naturally have the nature which makes them hard to accept the nature. It could depend on their personal interest. May be the person have different mentality. Some people just like the way they are.

Not perceiving a need: People don't like to try new things or create new challenges for themselves. When everything is running smoothly they just want to sit and relax.

vi. Selected Change model for my colleague

I am selecting the McKinsey's 7-S change model for my colleague. She can use this change model to implement the effective change process. It has various advantages over other change models. It covers all the aspects in form of Hard Elements and Soft Elements.

Justification: The McKinsey's 7-S change model is the recommended model for the change process. It is very effective as well as efficient change model. It is divided into two main elements as Hard Elements and Soft Elements. According to the McKinsey's theory, all the seven elements must be enforced properly to achieve the targets. I am recommending this change model because it is very useful for every small and big organization. This model is quite relevant to my colleague's situation because she will be able to realize that how these elements are related to each other. It is a justified model for my colleague as she will be able to examine the current situation and then only she can plan for the future. By using this change model, my colleague can ensure that the organization works well and can achieve the desired goals.

Explanation: McKinsey's 7-S Change model is the best change model for my colleague. According to my opinion and analysis, this change model will be most suitable for the current situation. McKinsey's change model is a perfect combination of hard and soft elements which are very important to any organizational change strategy. My colleague has taken over this role on the retirement of the former leader who was working in the organization from last 15 years. It shows that people must be stick to the old systems, policies and procedures. A change is needed in this situation but because all the other employees are working there from a long time, there opinion, skills, experience matters. So she needs to talk with everyone about the change. In other change models, personal experiences or the opinions are not that important. So if she tries to apply other change strategy, there could be much resistance. McKinsey's change model is a great combination which includes improved systems with suitable strategies as well as staff involvement, style and their skills. So according to my knowledge, this is the best and relevant change model.

McKinsey's 7-S Change Model

Role of Leader: In this type of change model, the leader must be friendly, enthusiastic and passionate about change. The leader must be able to inspire the employees to feel comfortable and excited about the new change. The leader must follow the below given points to involvement the team into change process.

Passionate: In this change model, the role of the leader is passionate and full with enthusiasm. The person will be full with a "Can Do" attitude. The leader will be a motivator for the team.

Team Involvement: The leader, in this type of change model, will be a perfect organizer and management genius who can change the resistance into acceptance.

Integrates the Goals: In this type of change model, the leader will integrate the personal goals of the employees with organizational goals.

The Enforcing Authority: The leader will be an enforcer for the rest of the team to implement the change process in an effective way.

Examples of Change Strategies:

There are too many change strategies that she can apply in this change process. Four of them are given below:

New Technology: She should introduce new information and communication technologies which can handle work overload and performs faster than the previous systems.

Delegation: She should provide some power to lower management so that they don't feel powerless. They will feel more involvement in the process.

New Recruitment: She should recruit more staff, as the previous staff is aging. So she needs to hire new staff and train them from experienced employees.

Reward for Achievement: She must introduce the reward schemes to celebrate achievements of the employees. This will boost up the motivation and confidence.

Part B

Question 2:

I have chosen two leaders, one from small size business and one from large size business. They are completely different from each other. One of them is in a fast food field and the other one is in the steel industry. They are explained below:

Leader 1: Hayden Ryan (McDonald's franchisee owner in Hamilton, New Zealand)

Leader 2: Lakshmi Niwas Mittal (World's #1 Steel Company Owner)

(i). Leader's Position in Leadership Model Continuum:

Leader 1:

Hayden Ryan is the franchisee owner of the McDonald's in Hamilton. He is a very passionate and energetic leader. He is innovative and risk taking person. He has quite relevant qualities which are useful for the business. He is very persuasive by nature. His leadership style is changed a lot since he started the business career in fast food industry. He becomes a lot more tolerate than before. He is very enthusiastic for his business. He deals fairly with his staff members and welcomes the suggestions and ideas.

In his business, he has the supreme power on all the employees but he is not an autocratic leader. He welcomes the suggestions and discusses the new ideas.

So it is clear that Hayden Ryan's position in leadership continuum is democratic. He was autocratic in the start but he changed his style according to the situation and improved his leadership style over the time.

Leader 2:

Lakshmi Niwas Mittal is the CEO of the ArcelorMittal. His company is the #1 company in the whole world. He is among the top richest persons of the world. He is a great businessman. He started his business empire from Indonesia. His father was a small businessman who helped him a lot in business. Lakshmi Mittal was very energetic and passionate about the steel business. So he started the business from Indonesia where he bought an old steel company.

He is a transactional leader who can guide and motivate his employees and partners. He is a risk taker and he is the one who start the trend of acquisitions. He is the main leader of the company and has the top most power.

(ii) Powers Available to Each Leader:

Leader 1: Hayden Ryan

Reward Power: Mr. Ryan is the supreme authority in his business. He has all the powers. He has the total control on business resources. He also got the power of information because of his position.

Legitimate Power: He has this form of power as well because of his position in the company. He is the Chief Executive Officer of the ArcelorMittal Company.

Expert Power: Mr. Ryan has this power because he is very skillful in organizing and managing the business. He has the expert knowledge to handle the tough situations and provide the best possible solutions.

Leader 2: Lakshmi Niwas Mittal

Referent Power: Mr. Mittal has this power because he was very successful in his business from a young age. He attracted investors from all over the world. He got much help from his father and he was also successful to get the help of British Prime Minister, Mr.Tony Blair.

Coercive Power: He has the coercive power in the company. Being the head of the company, he has the power to appoint or dismiss anyone from the company.

Reward Power: He has this power because he is the CEO of the company. He has the control on all the resources of the company. Although, there is board of directors in the company but Mr. Mittal has the most power in the company.

(iii) Cultural/Ethnic Factors

Leader 1:

Mr. Hayden Ryan:

He is a risk taker person. Hamilton is a small city than Auckland or Wellington but he choose that place to start the business. He took a risk with all his investment and finally succeeded.

His family was from Ireland. They came here and started a new business which was quite different from there previous job. But the family trusted him and helped him in business.

He is a religious person. He strongly believes in Jesus. His religious views help him to concentrate on the good aspects of business. So all these point influence his leadership style.

Leader 2:

Mr. Lakshmi Niwas Mittal:

He is from a good family. He believes in God which definitely influences his leadership style. He is from a well cultured family who helped him and supports him in the life and in business.

He is from India so this also influences his leadership style in business. When he started the business, there were no Indian companies in this field. So he got the benefit of it as well.

As most Indians, He is a calculated risk taker. He started the business from little and then step by step he grew his business. He is a trend setter for mergers and acquisitions.

(iv) Nature of the Organization

Leader 1:

Mr. Hayden Ryan:

He started the business career in food industry which helps him to use his skills and abilities. In this business he used his organization and management skills to effectively manage the company.

He used his persuasion techniques to grow his business by catering more customers. It further enhanced his leadership style which influenced the employees.

He used his logical and analytical thinking to expand his business. He worked on quality assurance, timing, consistency etc.

This food industry inspires him to perform well under pressure and this influence his leadership style.

Leader 2:

Mr. Lakshmi Niwas Mittal

Mr. Mittal started the business with courage because it was a big decision to start a new company. But the whole thing positively affects his life, business and his leadership skills, style and qualities.

He learned how to deal with negative environment in critical situations which brings the best out of him.

He was very much interested in the steel industry so he followed his dream and achieved it. This has a positive influence on his leadership as well.

He is calculated risk taker that's why he goes step by step for merger. He always says that people should think out of the box to grow and follow their dreams.

Question 3:

Leadership Concepts:

Leader 1: Mr. Hayden Ryan

Behaviours: He understands the value of communication. So he has an open door policy for all the staff members. He is always ready to listen to his staff members, their problems, suggestions, any possible factor that can affect the working ability of the worker or business. He takes special care for team development. If he thinks that the team needs some training, he is ready to provide. He deals fairly with everyone. His positive attitude creates a happy environment.

Traits: He is a confident person. He believes in himself and never fails to take risk. Being a leader, he is very assertive. He is energetic and innovative businessman. He is visionary guy who wants to expand his business more with a calculated risk.

Skills: Mr. Ryan has the conceptual skill to expand his vision. He is very dedicated and creative. He is passionate about the business. He has a good sense of humor. It helps him to make close relations with staff. He is strategically strong and he has the ability to understand the insights of people.

Attitudes: He has a very positive attitude towards everything which makes him a nice person. He his good businessman as well as great human being. He is empathetic and open-minded. He has a lot of patience which helps him to see the business on the long run.

Knowledge: He is very understandable person. He holds the full knowledge of his field. He clearly analyzes the current and long term strengths and weaknesses. He also keeps an eye on opportunities and threats to his business.

Contemporary Developments: Mr. Hayden Ryan is a great businessman and great human being. He understands the value of growth. So he always tries to increase the sales and expand the business. His contemporary developments include various occasions.

In 2011, during Rugby World Cup, one of his stores was in top 20 in the whole New Zealand.

He got some big orders from the local businesses on a regular basis.

Leader 2: Mr. Lakshmi Niwas Mittal

Leadership Concepts:

Behaviours: Mr. Mittal is a very enthusiastic person. He started his business with a passion to become a world leader and he is successful in that. He is very kind and helpful. He donates his money to many charities and organizations to help the poor people. In his business, he understands the values of two way communication. So he welcomes new ideas and discuss with board members.

Traits: He is energetic and assertive businessman. He is also very courageous and risk taker. He devoted his life to the business. He followed his dream to be the #1 in steel industry and he is successful. He is self-directed and confident.

Skills: He is very skillful. He has the ability to think strategically, analytically and logically. He is smart enough to handle the tough situations. He is very innovative. Despite of many problems in his business, he is still growing.

Attitudes: Mr. Mittal has a positive attitude toward life, toward his business. The day he started business, he never look back. His positive attitude is able to attracted people around the world. He is very fair and honest in his business dealings. He is a trustworthy businessman.

Knowledge: Mr. Mittal is very business minded person. He keeps the full knowledge of what is happing around him. He does a regular analysis to analyze the current situation. He keeps an eye on the strengths, weaknesses, opportunities and threats so that on the right time he can change the company policies according to the situation.

Contemporary Developments: Mr. Mittal is a great businessman who understands the value of developments. So he always tries to increase the sales and expand the business by mergers and acquisitions. His contemporary developments includes:

He owns the 41% shares of ArcelorMittal.

He acquired and merged too many companies into ArcelorMittal to expand and make it world's #1 steel making company.

He won many awards from Government of India, USA, Kazakhstan, South Africa, Spain and UK etc.

In 2011, he was the richest person of India in Asia and Europe. He was at #6 in the world.