Situational And Contigency Theory Commerce Essay

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According to the two surveys being done by me, I have summarized that I favor the leadership type where leaders accept inputs from their group members for any problem solving or decision making situation. Therefore according to my surveys, I exhibit and prefer a Participative type of leadership. My leadership strengths are listening to every member's suggestion while tackling any problem, patience, time management and an optimistic look for every problem and on the contrary I also feel that I lack few areas where I am very weak and those areas are trusting a particular suggestion given by any member for solving a problem, getting frustrated when getting more into arguments and I think I need work on both of these in order to yield a better leadership quality.



According to this theory, whatever an individual does when acting as a leader is in large part dependent upon characteristics of the situation in which he functions. When it comes to apply in my preferable leadership style, the democratic leadership style is more adequate in situations that require consensus building. Theorists also defined the style of leadership as contingent to the situation. Accordingly, there is no ideal leader, the one who tends to accomplish the task by developing good relationships with the group (relationship-oriented)and the one who have as their prime concern carrying out task itself (task-oriented), both can be effective if their leadership orientation fits in situation. This theory suggests that different situations require different styles of leadership.  That is, to be effective in leadership requires the ability to adapt one's style to the circumstances of the situation.  The primary factors that determine how to adapt are an assessment of the competence and commitment of a leader's followers (wikipedia, 2012)   the assessment of these factors determines if a leader should use a more directive or supportive style. In situational the focus is on adapting to the situation, whereas contingency states that effective leadership depends on the degree of fit between a leader's qualities and style and that of a specific situation or context.


According to this theory transformational leadership is the process by which a person engages with others and is able to create a connection that results in increased motivation and morality in both followers and leaders.  It is often likened to the theory of charismatic leadership that espouses that leaders with certain qualities, such as confidence, extroversion, and clearly stated values, are best able to motivate followers.  The key in transformational leadership is for the leader to be attentive to the needs and motives of followers in an attempt to help them reach their maximum potential.  In addition, transformational leadership typically describes how leaders can initiate, develop, and implement important changes in an organization.  This theory is often discussed in contrast with transactional leadership (wikipedia, 2012). Also according to this theory transactional leadership focuses on the exchanges that take place between leaders and followers.  It is based in the notion that a leader's job is to create structures that make it abundantly clear what is expected of his/her followers and also the consequences (i.e. rewards and punishments) for meeting or not meeting these expectations.  This theory is often likened to the concept and practice of management and continues to be an extremely common component of many leadership models and organizational structures. This theory fits in for my preferable leadership style as well. Democratic leadership style also involves people or leaders working for a definite goal and the leader accept help from every member of the group.


This theory is an attempt to integrate the strengths of all older theories comprising of traits, behavior, situational and functional aspects while addressing their limitations and producing a new element that makes the need for leaders to develop their leadership presence, attitude towards others and behavioral flexibility by practicing psychological mastery. This theory has three levels-the first two being Public and Private, which are actually outer or behavioral levels. These are being maintained on the dimensions of a shared, motivating group purpose, action, progress and results, collective unity for team spirit, individual selection and motivation. The third Personal leadership is an inner level and working towards one's leadership growth with technical knowhow and skills, developing the right attitude toward other people and psychological self-mastery (wikipedia, 2012). This theory also defines the different styles of leadership and my preferable leadership style is also being defined here as the leader exhibiting psychological self-mastery, right attitude towards his group mates and complete technical knowledge tends to lead the democratic type of leadership.

All these three theories also deal with the management of change. These three theories mark the different ways to bring out changes in the management. According to the situational and contingency theory, changes in the situation or the working environment tends to bring the changes in the management and on the other hand according to the integrated psychological theory, a leader can bring the change in the management of the goals by a new element called the psychological self-mastery where the leader needs to have the full technical knowledge as well great working skills and the right attitude towards the members of the group. Also there is different aspect to the transactional and transformational theory for dealing with the management of change.

Transactional leaders generally use reward and punishments to gain compliance from their followers. They are extrinsic motivators who bring minimal compliance from followers. They accept goals, structure, and the culture of their existing organization. Transactional leaders tend to be directive and action-oriented. Transactional leaders are passionate to work within existing systems and negotiate to attain goals of their organization. They tend to think inside the box when they solve some problems. Transactional leadership is primarily passive. The behaviors most associated with transactional leadership are establishing the criteria for rewarding followers in order to maintain the status quo. Within transactional leadership, there are two factors, contingent reward and management-by-exception. Contingent reward gives rewards for effort and also recognizes good performance. Management-by-exception maintains the status quo, also intervenes when subordinates do not meet acceptable performance levels, and in return initiates corrective action to improve performance. Transformational leaders are leaders who engage with the followers, and focus on higher order intrinsic needs, and also raise consciousness about the significance of specific results and new ways in which those outcomes might be achieved. Transformational leaders work in order to change the organizational culture by implementing new ideas (wikipedia, 2012).


My first leader for discussion is John Key. John Key is the 38th Prime Minister of New Zealand, in office since 2008, leading the New Zealand National Party since 2006. He was appointed as the member of Foreign Exchange Committee of Federal Reserve Bank of New York until 2001. He held his seat in New Zealand Parliament in elections I n 2002 where he represented Auckland electorate of Helensville with a defeat. He was then appointed as Finance Spokesman for National and he eventually succeeded Don Brash as National Party leader in 2006. Key led to his victory in November 2008 and then in November 2011 general elections. John Key entered the New Zealand Government where he has been showing democratic type of leadership, which is actually where a leader shares the decision making abilities with the group and party members by promoting beneficial interests of the group members (wikipedia, 2012).

Key leads the Fifth National Government of New Zealand which entered government at late 2000s recession in 2008. Key's government implemented GST rise and personal tax cuts and also formed Canterbury Earthquake Recovery Authority in response to Christchurch earthquake disaster. In his second term, Key announced a policy of partial privatization of state owned asset, also announced withdrawal of New Zealand Defense Force personnel from the deployment in the war in Afghanistan, signed the Wellington Declaration with United States (wikipedia, 2012).

As he was sworn in as Prime Minister, New Zealand was about to be dropped head first into the opening jaws of recession just beginning to chew up the global economy. John Key concluded that the banking system was functioning well at that time while it was not the case overseas. He sat down with Sandy Galland to share his thoughts on New Zealand place in the financial world. Key was never focused much on politics, he rather believed in delivering all that his campaigns promised and that is why he focused much on the businesses which gave real progress. His pragmatic nature has helped National's rise in popularity. He has been tagged for being disciplined, focused, somewhat safe and bland, but demonstrating charm and exceptionally strong leadership qualities (magazines today, 2012). He has used his power to control the recession by reconstructing the economy to drive long term productivity gain. Key has demonstrated great leadership qualities which have helped him to gain public recognisation and he has prepared the country in terms of economical ride from recession. He has a personality that draws us in and gives us confidence in his ability to deliver what he alludes to.

My second leader of discussion is Ratan Tata. He is the present Chairman of Tata Sons that is the Tata Group. He is also the Chairman of most of the Tata Companies like the Tata Steel, Tata Motors, Tata Power, Tata Consultancy Services, Tata Tea, Tata Chemicals, and The Indian Hotels Company and Tata Teleservices. We come to know all this from the biography of Ratan Tata that he has been serving the nation dedicatedly. He was born to naval Tata and Soonoo Commisaria, and he belonged to the prominent Tata family of the known Parsi community. He was the great-grandson of the legendary famous Tata-group founder Jamshedji Tata. He was raised by his loving grandmother Lady Navajbai Sett. In the year 1962, he completed his B.S. in the field of architecture with structural engineering from Cornell University.  In the year 1975, he further completed his Advanced Management Program from Harvard Business School. And according to Ratan Tata biography profile he also joined the Tata Group in December 1962 and he was the first to be sent to Jamshedpur to work at the Tata Steel. Mr. Ratan Tata has never been interested in getting married. He owns a Falcon Jet which he mostly likes to pilot himself. Mr. Tata has a metallic blue Masserati and a Ferrari California. Mr. Tata is also a withdrawn man and rarely features in the society glossies. On 26th January, 2000 Ratan Tata was also awarded the Padma Bhushan, which the highest decoration is awarded to any Indian.  In 2006 he was awarded with the first Award for the Responsible Capitalis. On 26th January 2008, he also conferred the title of Padma Vibhushan, which is the second highest civilian honor. In 2009 he was also chosen as to be an honorary Knight Commander of the British Empire. In 2010, he even won the Legend in Leadership award from Yale according to the biography of Ratan Tata. Ratan Tata biography profile reveals that he is the man who walked on the path of legendary Jamshedji Tata and is even contributing endlessly for the development of a better India. He is a suitable man indeed in the Prime Minister's Council on Trade and Industry and also the advisory board of RAND's Center for Asia Pacific Policy (wikipedia, 2012). From all of his achievements we can simply conclude that he has been working sincerely with the help and encouragement of his group mates and showing excellence in his leading goals and he thus, shows and exhibits the participative type of leadership style. Ratan Tata has exhibited a strong democratic leadership quality. He has been using his intellectual ability to enhance the business as a business leader, from all of his achievements it is very clear that he has implemented every of his strengths into a very business oriented path. He has shown a great visionary, strategist, initiator, change champion, risk taker, expertise and a man of integrity and these qualities has helped him gain the achievements as a great leader and all the achievements have been listed above just to have an actual view that through his great democratic leadership qualities, Ratan Tata has made a special dignified space for himself in the society.

When it comes to contrast the performances of both the leaders it can simply be seen that both the leaders have different ways of expressing and admitting their responsibilities but both the leaders have exhibited participative leadership style in accordance with the situational and contingency theory, both the leaders took care of all the goals and implemented strategies according to the situations and even had psychological self-mastery for obtaining their leading goals and they both have tried to maintain a relationship oriented and task oriented nature towards their goals, though these both leaders have a lot of differences in their upbringing and cultures.



Benchmarking may be concluded as the specific or a very particular criteria against which I am measuring my own performance and development, and in a way I am giving countable measures for the participative style of leadership, which according to my views, is inherited within me. For participative leadership style leading employees, confronting problems of the employees, participative management, compassion and sensitivity, respect for differences, putting people at ease, strategic perspective, being a quick study, decisiveness and change management are few measures of benchmarking. Participative leadership at the extreme is delegation where the leader may help shape the issue, but turns its resolution over to a group or individual, who then has the responsibility and hopefully the authority and resources to address it. Participative leadership at the extreme is delegation where the leader may help shape the issue, but turns its resolution over to a group or individual, who then has the responsibility and hopefully the authority and resources to address it. Before we even begin talking about skills, we must mention a trait absolutely critical to successful participative leadership: integrity. Followers will trust information, believe the leader will behave consistently with the group's values, will be loyal and committed to the group, and will participate with the leader and other members in problem solving and decision making for the group's benefit when the leader has integrity. Without it, all of the converses will probably be true. Self monitoring skills allow the leader to adapt their behavior based on social cues from the environment. They learn from the feedback they receive from others and develop an understanding of how their behavior affects others. Obviously, listening skills are important in a participative environment. Careful attention, concentration, the ability to hear between the words, and verbal and non-verbal feedback are important. Conflict resolution is necessary when two or more individuals or groups have interests or goals that seem inconsistent or incompatible. It is important to determine the source of the conflicts and address them proactively. (benchmarks, 2012).

The democratic leadership style is a very open and unique style of running a team. Ideas keep on moving freely amongst the group and are discussed openly. Everyone is given a particular seat at the table, and discussion is relatively free-flowing. This is the style needed in dynamic and rapidly changing environments where little can be taken as a constant. In here fast moving organizations and every option for improvement has been considered to keep the group from falling out of the date. The democratic leadership style means to facilitate the conversation, encouraging people to share their ideas, and synthesizing all the available information into a best possible decision. The democratic leader must be able to communicate that decision back to the group to bring unity if the plan is chosen. When situations change frequently, the democratic leadership offers a great deal of huge flexibility to adapt to the better ways of doing things. Unfortunately, this is also somewhat slow to make a decision in this structure, and so while it may embrace newer and better outcomes and methods; it might not do so very quickly (leadership champs, 2008).

Democratic leadership style can also bring the best out of an experienced and professional team. It also capitalizes on their skills and talents by letting them share each of their views, rather than simply expecting them to conform. If a decision is very hard, complex and broad, it is important to have the different areas of expertise that can be represented and contributing input - this is where I think I can and I possess the qualities of being a democratic leader. I have always remained in an environment where my contribution has been required in all spheres. Even when it came to decide a particular topic at home , we all used sit together and then take a good measure with everyone's consent. I have always been in an environment where I can speak on all the important issues and where I can see my suggestions and ideas being used in one way or the other. I feel that I have the ability to think of all possible way outs for a given problem, though at times I feel that my time management is bit confusing and I may not be able to think of the best solution always. Even according to the current leadership theories it is very clear that a democratic leader has all the same qualities as I have discussed here and somewhere I too depict these qualities in me.



Opportunities actually define all the major good breakouts in the life that have actually changed your life and the way to look towards your own life. I have been studying business management course and I have been realizing that the company I am trying all my strategies to implement and use all the knowledge in my work. No doubt, for every opportunity to grab, hard work is very essential. Whenever a position gets open in my company, I always look it as a opportunity to grab a better position in the company but the experience and skills also matter. So according to my analysis, I have been watching over opportunities to give my best shots in my company so that whenever it a vacant better position in my company, I may be able to grab it with proper qualification, skills, knowledge and experience. I believe that the greatest opportunity for a person in life is getting into the field one is interested in. the company I am presently working in gave me the opportunity to work as a guard for static work and then I got the chance to come into the limelight of my company senior officer by my intellectual and working attitude. I got the opportunity to get promoted as security supervisor in my company and seeing that I am blending up good with my customers and clients my senior officer wishes to promote me further. But the basic requirement is getting educated for that senior post and studying business management will surely provide me the baseline for greater achievements in life.


Rationale is actually an explanation of the logical reasons or principles employed in consciously arriving at a decision or estimate. The company I am presently working is actually a security company and at present my role is of a Supervisor who has to take care of all the guards working under me in the company. The knowledge of business management will eventually help me know the better ways to handle the functioning in making rosters and sometimes when the work load is more and staff is less, management of roster becomes little hard and during this short time goal,I have to use all my skills and knowledge to best suit the roster so that the company do not face any critical situation. In long term goals like tackling the turnover of the monthly incomes and even tackling the issues of a permanent roster plan with minimum number of patrol guards , it is completely the skills and knowledge that helps and when such issues probe up I always prefer to go on with a staff meeting with my seniors as well with my juniors so that all may come up with their way outs. Yes, I do not deny the fact that I always look up for opportunities to get a higher position in my company and this is very obvious that when I will acquire good knowledge more experience and sharpen skills ,I will eventually crave for a better and higher positions in the same field I am at present and also one fact is also true that doing this or achieving this will involve great experience and this experience can only be gained by analyzing the suggestions and advises from my group mates and also counting upon their experiences, learning from them and then implementing all that in a very convenient manner in my own leading capacity.


When it comes to applying strategies to make my own leadership more effective or worth , then I always think of implementing great aspects in my own role as a supervisor. I think of keeping communication vast open because I feel that if everyone is made free to keep their own ideas and points on the table then all the good points can be easily made and a simple good way-out for a problem can be made. Then I also believe in focusing the discussion as sometimes we tend to ignore the major points that have to be carried on while discussion is being made. I keep on reminding everyone the sole motive of the discussion so that time is being managed properly. The third strategic point I am developing in me is the readiness to commitment as in my leadership style I am surrounded by a lot of responsibilities that can become difficult at times to commit. Also I believe in respecting the ideas that every member of my group will represent in front of me and try using those points and ideas wherever it is possible. Lastly, but not lastly, I will always apologize if my ideas or solution will displease any member of my group but not for the reason that I am wrong.


Having a time keeping strategy is very important in any leadership goal because it is time that determines the exact growth and development of a person's leadership qualities and the company's growth and development is also focused on this time management. A proper timeframe should be maintained for every short term and long-term project or goal. It is the short term goal time management that actually determines the assurance of long term goal. The short term goal I face in my working plan is the completion of general night and day patrols in the provided time period. For every patrol in the daytime I have assigned 8 hours and for every night time patrol I have assigned 12 hours and the mid time is actually managed in knowing checking and keeping view of all the working people and guards in my company. The long term goal of company's performance is to maintain this daily routine for the time of the contract and also within this time of the contract all the activations and alerts and any miss happenings in the client's site are to be monitored and managed in the exact time provided. During work any worker may face any problem and for the same time saving classes are being provided and even general meetings are being held in case any new thing or scanners are being introduced in the company so that all can save their as well company's valuable time in again and again asking about the device.


The measures are actually the various methods of depicting that you and your company is functioning well and the performance level is upgrading and not static or going down. I also keep on measuring my performance and the company's initial status at regular intervals. For the same, I have adopted various quantity checks that keep in account the time management , client satisfaction level and company's monthly turnover and also my senior officer's attitude towards me. The workers and guards in my company are all assigned with their logbooks and files where they have to keep writing of all the activities they have been undergoing ever since they are on work so that I may keep a check on their time managing skills. The arrival and departure of every guard during the emergency of site activation is being checked so that I may come to know whether we are assuring the client what they pay us for. The other good method for measuring my company's upgrading is that seeing the work of one client more clients gets attracted towards the working of our company and in turn our economical status rises. It is not that I do not give importance to small achievements that junior workers help the company to get. I even celebrate those small achievements with the members of my company so that their and every body's morale is boosted up and they work with a great positive attitude towards their work. And above all when my senior officer is upgrading my wages and is showing a very positive attitude towards me, I get to know that my leadership qualities are being praised and I am a worth employer for my company.


Understanding the strategic resourcing needs, assessing the current workforce, developing a strategy to find and keep talented people to meet the needs of the business plan are the major resources I need for my company along with the monetary investors. These are the various methods I implement to access these resources:-

•I try to develop and implement a set of metrics to measure all resourcing related costs.

•I ensure all resourcing activity is future focused, planned, structured and geared up.

•I try to maximize visual management and internal communication to ensure resourcing plans and strategy are accessible and understood.

•I work in knowledge with every risk management strategy and even undergo researches to maintain company's expenses.

•I maximize use of online and social media to attract and select.

•I work with members of my team to interpret strategic resourcing requirements across the business.

•I develop and implement a Resourcing strategy that includes resourcing, attraction, selection, restructuring, redeployment and exit.

•I undertake analysis to measure gap between current state and future state in terms of workforce and skills.

•I understand future needs to attract and retain specific skills.

•I try to develop management and succession planning strategies; work with Business Partners of the company to embed these.

•I try to manage all aspects of strategic resource planning including ownership and development of the employer brand.

These are few ways I try to keep my resources quite active and based upon these features I try to establish my position of Supervisor in my company and I wish to get more high grades and achievements. These features are just too les for an effective leader and I hope with time and experience I will be able to gain good grounds.