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Every organization is susceptible to changes that could bring forth diminutive concerns or tremendous impact to the entire system. How leaders stand firm in the midst of these hurdles could seize the organization back to the helm. This understanding simply puts that the success or fall of any organization largely depends on its leaders & how these leaders strategize for & in any given situation. They capitalize on their theoretical & practical expertise, foresight, aptitude & even personal beliefs. Leaders vary & so are their styles of governance that give rise to certain scenarios where a leader leads in accordance to what the organization needs or an organization is led in accordance to what the leader wants. Whichever case applies, the leadership that is deemed appropriate is the one whose strategies give the best result - the achievement of organizational objective. Leaders can come up with the best strategies but leadership is the process that transforms these strategies to life. That is why various leadership theories have been conceptualized to describe the varying degrees that different leaders respond to organizational needs.
1.2 LEADERSHIP THEORIES
Leadership is a series of approach to a network of situations in an organization. It manifests how these perplexities are being dealt with by the leaders. The expanse of studies on leadership theories commences from the beginning of history. At present, many theories have been presented & more are still believed to emerge in the passage of time. Some dwell on the concept that leadership is an inherent capability on the part of the leader, a conjoined effort among leaders & subordinates, a responsive action by the leader to any condition, or a path to empower other people in becoming leaders as well. Whatever concept there is, still the utmost concern is how effective these theories are in achieving success for the organization.
1.2.1 TRANSACTIONAL LEADERSHIP
As discussed in ChangingMinds.org, "Transactional leadership is based in contingency, in that reward or punishment is contingent upon performance. Despite much research that highlights its limitations, Transactional Leadership is still a popular approach with many managers. Indeed, in the leadership versus management spectrum, it is very much towards the management end of the scale".
Business entities around the world adopt the transactional leadership theory. Most organizations engaged in providing product or service for profit embrace this concept. They set certain standards for these employees & are highly expectant of them to perform. This is evident in sales, production & manufacturing companies where jobs are highly quantified. Quotas or periodical targets are being implemented to ensure employee compliance. Employees in these types of companies are either motivated to succeed to achieve the rewards of their fruitful labor or urged to work to avoid the repercussions of their poor performance. Consequently, transactional leadership justifies the leadership strategy in business organizations as there is indeed a great need for a system of rewards & punishments so that employees maximize their potential in generating profit. Ideally, organizations view this theory as a means to sustain the stability of the business & in turn ensuring the employability of its leaders & subordinates. But many organizations, on the other hand, continue to put greater consideration on the business side of it.
1.2.2 TRANSFORMATIONAL LEADERSHIP
Also mentioned in ChangingMinds.org, "Transformational Leadership starts with the development of a vision, a view of the future that will excite and convert potential followers. This vision may be developed by the leader, by the senior team or may emerge from a broad series of discussions. The important factor is the leader buys into it, hook, line and sinker".
Most organizations that embrace this theory are evidently more concerned about their employees' needs rather than classifying them merely as a company resource. They perceive their employees as the greatest asset of the organization & give high regard for their contributions in the achievement of the common goal. Transformational leaders are elemental to shaping the employees to what they are ought to be & see themselves responsible in what these people could become for the organization. Transformational leadership believes that employees who feel secure about the organization they evolve in will put a great effort to nurture this environment with the knowledge that if it succeeds , and so do they. These leaders familiarize themselves with employee reinforcement in terms of personal & professional effectiveness. They believe that each employee has his own potential for greatness & that greatness once applied magnanimously benefits the organization. These theories simultaneously lead to two supreme goals of a successful organization, empowered people & achieved objectives.
1.3 LEADERSHIP IN UNITED LABORATORIES, INC.
1.3.1 COMPANY PROFILE
United Laboratories, Inc. or commonly known as UNILAB is the largest local provider of healthcare goods & services in the Philippines. It is engaged in offering over-the-counter medicines that benefit most of the population in the country. It takes great pride in bringing affordable yet high quality & effective medicines to the people & healthcare sectors against the fortress of multinational pharmaceutical companies. Currently, its leadership has been solidified through amalgamated businesses with marketing & manufacturing organizations with other Southeast Asian countries. The enormous feat this company has achieved is far from how it started. Its founders had an accidental meeting in 1945 & decided to establish a humble streetcorner drugstore in the capital city that was then badly torn by war. Through the years, this organization has been guided by the "Bayanihan" spirit, a Filipino term meaning teamwork. Due to its benevolent principle in doing business, UNILAB is a frontrunner in beating poverty
through healthy citizens by providing readily available & affordable medicines in collaboration with the Philippine government. Since the pharmaceutical business is a very dynamic world, no organization can escape the impact of change & competition. Many companies were not able to survive the challenges at hand & perished. But UNILAB survived it all & through the years emerged as a formidable leader. This is mainly dependent on the type of leaders it has & the way they strategize against the forces that could turn the organization around.
1.3.2 LEADERSHIP THEORIES IN UNITED LABORATORIES, INC.
UNILAB is a renowned emblem of leaders who believe in Transactional Leadership. Among the pharmaceutical companies in the country, it boasts about an organization full of employees who are enjoying the rewards of successful business. It is one of the most talked about companies whose employees are being envied by most because of the existing benefit package & reward system. As this company is mainly involved in sales that entails achievement of perodic targets, its people are enormously inspired of the rewards they could reap once their objectives have been realized. In the event that expectations are not met, there is a corresponding measure of correction. But in these instances, leaders ensure that the punishment is in accordance to the degree of error. During the entire process, these leaders keep the "Bayanihan" spirit ablaze in employees who are either being rewarded or punished. The organization helps the employees to fully understand that the success of one is the success of everybody. And with that, failure could affect the entire system. This manifests that UNILAB's adherence to transactional leadership coincides with & influences their leadership strategy.
UNILAB is also a portal of transformational leaders. This organization strongly believes in Transformational Leadership. The company believes that each of its employees can deliver greatness for the entire organization. By providing competitive training package & professional reinforcement, leaders of this company play an important role in molding the employees leadership technical capabilities but nourishing immensely their
psychological & individual potential of governance. Along the way, these leaders take responsibility in cultivating the high moral & ethical standards of these employees so that when they get their opportunities of becoming leaders themselves they will do the same. Transformational leaders serve as great mentors & link the chains of leadership evolution thereby continuing the process of achieving success for the organization through competitive & highly inspired employees. These theories have been serving UNILAB huge advantages as they continue to succeed in the business with motivated employees & enjoy a low employment turnover rate reflecting the trust & contentment of its people. In line with this, employees who began & stay in the company find themselves a few years later as managers & leaders who foresee a secure retirement life with one of the most comprehensive retirement packages in the country. With few employees leaving the organization, the spirit of teamwork & sense of belongingness abound providing harmonious relationships among leaders & its people.
18.104.22.168 PARTICIPATIVE LEADERSHIP IN UNITED LABORATORIES, INC.
According to ChangingMind.org, "Participative Leader, rather than taking autocratic decisions, seeks to involve other people in the process, possibly including subordinates, peers, superiors and other stakeholders. Often, however, as it is within the managers' whim to give or deny control to his or her subordinates, most participative activity is within the immediate team".
UNILAB has been very successful as an organization adopting both Transactional & Transformational Theories of Leadership. But based on the facts that I have at hand & personal observation, I believe that this organization has the opportunity to be propelled to even greater heights once they consider a third concept, that is the Participative Leadership Theory. The members of this organization enjoy the meritorious benefits of their employment & exceptional attention to leadership advancement provided by the upper management. But the company can still find more favorable outcomes when they fully involve their employees in decision-making. As their leaders themselves mentor their employees, they can fully trust then that these people could provide sound
decisions & effective strategies as they have been homegrown talents. With the transformational theories of leadership in mind, surely these employees are highly motivated to share their expertise & ideas for the company that inspires them. In addition to that, they are aware that transactional leadership involving the system of reward & punishment is existent in the organization. And so it is fitting to say then that whatever inputs they proffer in the decision-making are consequent to the rewards they foresee to receive or otherwise.
After learning about the different leadership theories, I believe that the greatness in leadership is not measured by how you govern your employees but is immensely valued by how your employees evolve as a part of the organization & their effectiveness in achieving the company objectives. The leadership theories that an organization adhere to must coincide with the leadership strategy being formulated. We can never say that there is one great theory beause each business entity is unique & has its own challeneges, needs & objectives to achieve. Each organization thereby must be in a continuous process of discovery for the most applicable theory or set of theories when its objectives are often unmet & leaders could not pull through its people. After all, leadership drives the organization but the employees sustain the business.