Models Of Leadership And Their Applicability Commerce Essay

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Leadership is a style by which follower can be persuade. Leadership is very important for any organisation. Style of leadership depends on the type of organisation. In my assignment I would like to mention the leadership activities in McDonald's restaurant. McDonald's is the world largest and reputed first food restaurant chain. In 1973 the first restaurant was opened by the McDonald's brothers Richard and Maurice in America. Now it has more than 30000 restaurants in about 120 countries. McDonald's opened their first UK restaurant in October 1974. In the UK more than 60 percent of their branches are conducted by the company and rest of them are franchised. It has large scale of part-time and full-time hourly paid employees.

Before starting the main work, here I would like to mention that who is leader? Leader is a person who has ability to persuade people to achieve the organisational objectives.

According to Bass' (1989 & 1990) theory of leadership states that there are three basic way to explain how people become leader. The first two explain the leadership development for a small number of people. These theories are given below:

Some personality traits may lead people naturally into leadership roles. This is Trait theory.

A crisis or important event may cause a person to rise the occasion, which bring out extra ordinary leadership qualities in an ordinary person. This is the Great Event theory.

People can choose to become leaders. People can learn leadership skill. This is the Transformational leadership theory. This is the most widely accepted theory.

During the early part of the twentieth century interest in leadership increased. Early leadership theory focused on what quality distinguished between leader and follower. There are eight major or current leadership theories. These are given below:

The Great Man theories

Trait theories

Contingency theories

Situational theories

Behavioural theories

Participative theories

Transactional theories: known as managerial theories

Transformational theories: known as relationship theories

Situational leadership theories

Paul Hershey and Ken Blanchard developed Situational theory in late 1960S. This theory proposes that leaders choose the best course of action based upon situational change. It also proposes that different style of leadership may be more appropriate for certain type of decision making.

This theory focuses on leaders' two behaviours:

Task behaviour: Under this task leader defines clear instruction of role of the individual or group and provides the what, how, when, and where to the task. Flowers also can know about their task. If any employee knows work instructions, he/she can set a goal to perform his/her given work.

Relation behaviour: here leaders use two-way or multi way communication and provide the socio emotional support that will allow the individual or group being influence to buy into the process. The leader and employee both are satisfy because both can know about their problems.

According to situational leadership theories, it is possible to make sure that which type of leadership behaviour have to use in a given situation. A leader can assess the maturity level of employees. To complete the specific task successfully employees have to have ability and willingness.

Ability: it includes skill, knowledge, and experience that are needed to do a specific task. Sometime it is seen that, employees have willingness to do any task but because of lack of skills and knowledge they are not able to do the task.

Willingness: They are experienced but lack of confident to take responsibility. Confident, motivation and commitment are needed to accomplish the specific task. If employees have confident on work, he/she may successfully finish the work.

Advantage of situational leadership theories

Easy to use

Easy to understand

Disadvantage of situational leadership theories

This model fail to distinguish between leadership and management

Focuses too exclusively what the person in charge does

Manager and leader must have to change behaviour base on the situational change.

Transactional leadership theories

These kinds of leaders give clear instruction to the followers to do a specific work successfully and provides reward and attempt to meet all needs of his/her employees. This idea exemplified the Maslow's Hierarchy of Needs.

This theories approach leader to be experts to run management function. This kind of leader must be talent, hard working and honest. In this style leader has right to punish the employees, if their work does not meet with the pre determined standard. Transactional leadership is really a type of management not a true leadership style because the focus is on the short term. In this type, leader tells the followers if you do this work I will give this opportunity or reward.

Advantage of Transactional leadership theories

Follower immediately see their reward, thus, there is immediate satisfaction.

Employees try to finish the work on time

Disadvantage of Transactional leadership theories

Because of their '' if I do for you, what will you do for me'' attitude leaders relationship with follower are often short lived and less meaning full.

It assume that people are largely motivated by simple reward

How McDonald's restaurant might benefit

McDonald's is a reputed and largest fast food chain restaurant in the world. McDonald's brand has been selling hamburger and French fries for over 30 years. It has large scale of part time and full time hourly paid employees. We know that there are number of leadership theories can be used in an organisation.

In my assignment, I would like to describe that McDonald's restaurant might benefit by using situational and transactional leadership theories and how these theories incorporated effectively into McDonald's restaurant.

Situational theories at McDonald's restaurant

The situational theory focuses on task behaviour, relation behaviour of leaders and ability and willingness of employees. This theory also refers that leaders need to change their behaviour on the base of situation. In McDonald's restaurant managers have target to get customers satisfaction by providing them food quickly and quality full. Being a crew member of McDonald's restaurant, I realise that if situational theory is applied at McDonald's restaurant, managers can assign the work for employees and employees can know clear instruction of their work. At busy time of restaurant managers may work with employees.

According to situational leadership theory; leader can assess the maturity level of employees for a specific task. In McDonald's restaurant, it is very important to assess the employees' readiness otherwise kitchen person will fail to make food within two munities and employees of front counter won't be able to serve the customers quickly. McDonald's hires new people to fill up its current vacancies. That is why by using the situational leadership theory; manager may get benefit at work with newly hired employees. In McDonald's restaurant two-way communication system is used between leader and follower this practice is relation behaviour which is part of situational leadership theory.

Since many organisations try to enhance their productivity and competitiveness against major rival behaviour and style of leaders need to change with the change of organisational culture.

Transactional theories at McDonald's restaurant

The transactional theory focuses on motivation, reward, punishment, and role task requirement of employees. Despite much research that focuses its disadvantages transactional leadership approaches still popular to managers. In McDonald's restaurant, leaders expect that, by providing fast service and quality full foods to customers and want to keep McDonald's brand image at top position. Leadership at McDonald's restaurant is performed by the managers. Working at McDonald's restaurant is very easy because it has three task cooking, cleaning and serving the customers. If transactional leadership theories are applied at McDonald's restaurant, managers can give the clear instructions about role and task to the employee. According to this theory leader tell the followers if you can finish work on time, you will be given reward. McDonald's sells fast food, here making food and serving customers is time related work such as two munities for Big Mac. If there was punishment system at McDonald's restaurant, , employees try to make food and serve customers within given time.

Basically it is seen that restaurant manager use this theory. If this theory is practiced fully at McDonald's restaurant, it may achieve objectives of McDonald's. Moreover this theory involves that leaders must be hardworking, talent and honest and should have performance in the form of plan, budgets and schedule making. These kinds of activities exist at McDonald's restaurant.

Factors influence the leadership effectiveness


It means choosing the optimum to a given end. Efficiency has advantage for both customers, who what they want quickly and with little effort, for workers who can perform their work in simple manner. At McDonald's restaurant employees are very efficient to make quality full food and serve the customers. Also McDonald's uses latest technology at its restaurant and provides on job training to employees. So that it gets about 100 percents efficiency. If efficiency of overall restaurant is about 100 percents, manager will be flexible with their employees. Here actual leadership effectiveness may be influenced by efficiency.


It is the new way of doing something. The objective is positive change to make someone or something better. Innovative leader has ability to persuade his/her follower through new way. However, innovation may influence the existing leadership style in an organisation. On the other hand, if leaders are not creative, he/she cannot adapt with organisational change. Also lack of innovation may affect the leadership style in an organisation.

Human resource

People are most valuable asset for an organisation. They should be used carefully to achieve the organisational goal. McDonald's has large scale of part-time and full-time employees. They are from different country, culture and religion. Human resources are unpredictable. Human resources may affect the performance of an organisation. To manage or motivate them, manager may use the different for person to person.

There are lots of factors, which influences the leadership effectiveness in an organisation.




Socio-economic factors


Trade union

Education and so on.

Cultural influences on organizational practices and processes have become a very important research topic in the field of management and organization since the last decades of the 20th century (Boddewyn, 1965; Schollhammer, 1969; Adler,1983; etc). It influences the leadership effectiveness. National culture is very important factor which influences leadership effectiveness in an organisation. In Bangladesh, if subordinates come at work place with late which may be considered by leader.

Task 2

Current and future requirements

Current requirements

Information age

Information will be great opportunity for business leader. It is the age of information technology. In this era, student, leader, teacher, doctor and others kind of persons can know any information from their home. Basically information technology changes the word into a village. In business world, information is very important because business leaders need to know about economic conditions of world. Leaders can send information from one branch to other branch by using le-mail. Also, managers or leaders can share important information by using internet and can know market rate of any raw materials and products.

Lack of technology and legal issue on information transfer may affect this kind of activities.


Nowadays, every organisation setup their organisation in different countries in the world. Example for McDonald's has lots of branches all over the world. Leaders are working with people from different culture and country. So, leaders need to have good understanding of cross-cultural patterns. All organisations seek a talent, dynamic, educated and honest people to compete with global business. Today's workforce growing more and employee with different ages are working together. Diversity also deals about equal opportunity in an organisation.

Diversity can be impacted by political factor.

Market globalisation and the internet

Just 30 years ago stock market was the shadow of what today. There were few numbers of shareholders but at present share market is growing because of internet.

With the help of internet today people can buy any product from their home. Example for, Dell sells their computer and other production through internet. Because of market globalisation, China sells their products all over the world. That is why leader should have knowledge on internet.

Cultural factor and political factors may influence on this activities.

Mergers and acquisition

Merging with other company is often very important to adapt in current market. For an example: Intel and Microsoft. Intel is the best for computer processor and Microsoft is best for software in the world. There are some benefits by merging such as, share knowledge and skill, reduce cost, and other's products can distribute through own channels. In today's business leaders should have knowledge on this kind of activities.

Here cultural factor may impact on this kind of activities.

Future requirements

Technical knowledge

Technical knowledge is very important for every leader because this is the age of technology. In this era without technology no organisation can survive in the current market. In McDonald's restaurant managers have knowledge how to operate the every machine but if there is any fault they cannot repair it. For repairing any machine they hire technician from outside, this process is time consume. If managers had technical knowledge, they can repair immediately.

Home base work

It is the age of globalisation, business is going very competitive. We know that when night it the UK, some parts of the world are enjoying light of day. In this situation, to get the opportunity from globally, leaders must have to work at home after office time.


Leaders need to be more skilled, educated, wise and hardworking to play all functions (Finance, IT, Human resource and so on) of an organisation

Task 3

Proposal for the development of leadership

Business environment and culture is changing day by day. To cope with these change leaders of every organisation need to be talent, dynamic and fully developed. I would like to propose a programme by which leaders in a McDonald's can be developed. Which I want to mention it may already use this program for developing leadership.

Experience or Field Assignment

It is an effective process for developing leadership in an organisation. In this method, leader is directly mate with any event within an organisation. It is the traditional process of leaders or employee development. If leaders are developed by this process, they can handle easily any or overcome problem by using their previous experiences in professional life.

Action Learning

It is one kind of education process by which performance of leader can be improved. In this method leaders learn by doing something and teaching through example. This method helps to improve the presentation of knowledge and skill. It is necessary for every leader at McDonald's restaurant to present important information to followers at meeting or any other event.

Mentoring and Coaching

It is the activity of a coach for developing the abilities of coaches. In this method leaders are offered some courses on leadership and developed by a coach. This method is recognised in today's organisation for developing employee.

Engagement and Involvement

This process refers that leaders involve directly with work and learn organisational practices. This process is very effective because he/she is doing something. This process like as on job training.


Leadership is very important for an organisation. Future or progress of an organisation completely depends on leaders. Good leader can persuade their follower easily by using own style. There are lots of example in the world leaders motivate the employee without giving to them any reward. However, some leaders fail to motivate the followers after giving them reward. In the age of globalisation leaders need to have more experienced and dynamic than their followers.


Environments of business are changing rapidly every day, today which one is new tomorrow that one may be old. To adapt with changing environment leaders need to learn continuous basis and should have knowledge on international market. We know that productive level is root of every business, if productivity of any organisation is bad, that organisation cannot survive. For McDonald's, restaurants are its root of business but restaurant leaders are not getting opportunity to learn about changing business environments. For this reason, I would like to recommend that restaurant leaders should be given opportunity for learning on business environments.