Now that we are in the 21st century, the world will demand more from us. With rapidly changing working environment leadership has become a very important aspect in businesses.
It is important for organisations to plan and implement leadership theories in their organisation to achieve its objectives. Good leadership and management are essential pre-cursors for a motivated workforce and a successful organisation. In this assignment, we will identify current theories of leadership and their skills, attitudes, and qualities needed to meet each of these concepts. Then we will explain leadership effects of leadership and describe current and future requirements of leadership. Finally, we will see a leadership development programme for an organisation with which we are familiar.
Current Theories And Models Of Leadership
Current Leadership Theories:
A process that influences people to achieve an objective and guides the organisation in a way to make it more coherent is called leadership. It is also defined as a process of leading people in the right direction in order to achieve it's long term goals.
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There are many types of leaderships .We will explain 2 of them
Transformational leadership deals with identifying a leader who has special abilities to bring innovation and change. Transformational leaders create significant change in both employees and the organisations. They have the ability to lead changes in company's vision, mission, culture, and strategies. They focus on vision, shared values and ideas to build relationships.
It has four components: Charisma or idealized influence, inspirational motivation, intellectual stimulation and individualized consideration. Being charismatic is like having a great sex appeal. It has a dynamic and commanding presence. We idealize such type of people. Martin Luther King is a great example. Leaders who are inspirational motivators appeal to basic values with enthusiasm and an eloquent speaking style to offer a compelling vision. Intellectual stimulation means inspiring people to think creatively by suggesting new ways of looking at things. Finally, showing individualized consideration means paying attention to people as individuals and helping them meet their requirements.
Helps in taking important decisions
Helps in promoting vision in an inspirational manner.
Higher performance satisfaction of both employees and the organization.
Too much emphasis is placed on style.
The leader needs a lot of time to build trust among the followers.
The followers can be tired from the leader's endless requests.
If the task must be finished immediately, a different type might be dictated.
Transformational leadership benefits Tesco in selling the products and services in a systematic and in appropriate manner. It helps the employees to create energy and passion to sell the products of the company resulting in more profits to the company but the main disadvantage of this leadership is that it never helps the employees to achieve its targets as they do not develop any goal and vision for themselves.
Originally called The life cycle theory of leadership, the renamed situational theory of leadership states that effective learning style is that which fits to a particular situation. In
Hersey & Blanchard's leadership theory employees are not considered maturate or immature in a general way but they were held to possess different degree of maturity in relation to different specific tasks.
(Management gurus: what makes them and how to become one, Andrzej Huczynski, 1993)
The decisions which effect this theory depends mainly upon the motivation and capability of followers. The followers and leaders relationship is also another factor that affects leader behaviour as much as it does follower. In various situations followers must know his role what is it all about and when to do it. There should be proper co-operation with one another because there are different situations where a group work is required. In different situations requirements of the different tools, materials, people, etc should be available. When there is a need for collaboration external coordination is very important to collaborate with other groups.
Always on Time
Marked to Standard
Situational leadership is very well known and is used frequently for training leaders in the organisations.
Situational leadership is easy to understand and can easily be applied on variety of things.
Situational approach is Prescriptive
It helps the leaders to change the styles to meet the requirement of the situation.
(Leadership: theory and practice, Peter Northouse, 2010)
Model fails to distinguish between leadership and management. Leadership style followed is in fact management style.
Leadership is not about making decisions but it is about inspiring people to change direction.
It Focuses too exclusively on what the person in charge does.
Situational leadership can benefit Tesco as the followers would know what to do as they would be following their Leader. They would know how to and when to utilize their resources for the structure of work as is it considered the most important task in the organisation There is more of knowledge and skills sharing as it is a group work. Organisation can be in trouble if all the activities are done in groups because if the employees does not have the skills it would be a loss to the whole system.
There are number of factors that impacts on leadership effectiveness. We can list these factors as below;
Organisational structure and type,
Effect of the external environment,
Technology, communication processes used in operations,
Leaders characteristics and manners,
Power style used by leader;
Follower's needs, experience and their motivation,
Nature of jobs,
Relationship between the followers and the leader,
Influence of organizational and social culture,
Type of problems and faults.
Motivation means winning the hearts of people. Leadership effectiveness is equal to power plus acknowledgment. Tesco managers use it successfully on employees in implementing important operational changes.
Financial Structure & Position:
Financial structure also has great impact on leadership effectiveness. If a company has an unbalanced financial structure, it can't achieve their objectives, develop or sustain profitability, effectiveness and productivity. Tesco never had financial problems and profit flow of the company is good so it hasn't been affected so much by current economic crisis. Their strong financial position reinforces the leadership effectiveness in Tesco.
Efficiency means achieving the task with minimum time and effort. Efficiency helps the leader to use time usefully, to make a decision easily in critical conditions and to build a dynamic communication with followers. So the leader has a big contribution to accomplish organization's goals.
In Tesco, efficiency positively affects on the leadership effectiveness due to dynamic company structure, minimum steps in decision making process and active communication with followers. In this current economic climate, the Company's managers can make a decision easily related to operations or the future of the Company and the decisions are implemented quickly because of active communication between top and below. With these factors, the Company's objectives are achieved with minimum time and effort.
An organization has to comply with the national and international legislation. Legal system in United kingdom usually brings restriction to the Company's operations. Especially in Manafacturing and supply operations, there are a lot of restrictions aiming to protect environment. It negatively affects on the leadership effectiveness.
Current And Future Requirement
Current Requirements Of Leadership:
Courage means taking risk and initiative, exhibiting personal autonomy and tolerating maximum anxiety. The courageous leaders don't avoid taking risk and don't feel any anxiety and fear when they take initiative. (Koestenbaum 2002)
Education and family are important factors on courage. The other factors are social environment, community and culture.
Ethics can be defined as acting according to the values which are really important for you. In business ethics usually refers to quality in management, products, services and processes. A leader has a role to maintain and develop organisation's values and ethical practice within an organisation. (Pardey 2007)
One of external factors impacting on ethics is family. Family is the basic source for creating personal morality. The others factors are religions, belief, local community, culture and economic factors.
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We can define the vision as thinking big, enlarging perspective and having an intellectual brilliance. A leader is good at abstract, systematic, and strategic thinking demonstrates creativity in critical time and has an ability of growing and innovating.
Generally we can see leadership's vision in organisation's mission or vision statement, values, actions and objectives.
The most important external factor impacting on vision is globalisation. Vision also means thinking internationally. The others factors are technology, innovation, organisational culture, human nature, global warming, natural resources, legal system, economic development, political structure etc.
Realism means acting according to facts and truth. For having realistic mind, you have to think rather than feel; be objective, not subjective; and be rational, not irrational. (Koestenbaum 2002)
An effective leadership needs to have realistic mind and the leader must be able to act in accordance with the real business conditions, the society structure and the legislation. Education, social environment including family, religion, belief and culture have direct impact on realistic mind.
Future Leadership Requirements:
Different types of future leadership requirements will have a major role in future understanding and practice of leadership development and they are as follows:
- Leadership competencies will still matter
- Internationalization of leadership
- Role of Technology
- Increasing interest in the integrity and character of leaders
- Pressure to demonstrate return on investment
- New ways of thinking about the nature of leadership and leadership development.
Leadership Competencies Will Still Matter:
Leadership competencies will still matter but they will change as the current competitive Environment change.
5 critical forces shaping leadership competencies are:
Global competition, Information Technology, Need for rapid and flexible organisation,
Teams, Differing employee needs.
This will create a new environment and develop new strategies for business. Changes in the context in which leadership is practiced will bring certain requirements, including globalization, increasing use of technology, and integrity of leaders.
Role Of Technology:
Technology has created a profound effect in working of organisation. Technology has changed the way of accessing the information and the way people communicate and share information with each other. Leaders must have proper knowledge of different technologies. Through different facilities of internet for communication comfort is necessity. The time period for the response from the leaders would be reduced as the technology would be changing so decision making based on results can be made faster. For individuals it would be easy to be in touch with leaders any time any where as per their requirements. The need for people to travel for training programs would be reduced and opportunities for leaders to learn would be in a better way through their time convenience. Through technology various experiences would be shared through chat rooms, e-learning advances, e-mentoring and other ways of business simulations.
Pressure To Demonstrate Return On Investment:
Leadership development is very important but it is quite expensive. Yet some companies like IBM, Johnson, PepsiCo spends significant time, money and resources on leadership development. In today's market leadership development expenses will likely have to meet certain standards of proof of impact. Demonstrating the impact of leadership development investment is emerging as a priority to most of the organisation.
Understanding Cultural Differences:
Future leaders will have to understand cultural differences, beliefs, sex, values and race. They should also adopt industry and leadership style. Motivating employees from different cultures will be an important aspect for productivity in future.