An Explanation of Leadership Theories and Models

An Explanation of Leadership Theories and Models Explain how to read the above diagram. Use a separate same diagram to include the relevant job functions/titles (if you want to extend your explanation!) An authoritarian leader makes decision without any consultations. According to Kurt Lewin, the autocratic leadership style is feasible when there is no need for input on the decision and the input will not affect the decision ultimately. Authoritarian leadership style often surfaces in work situations that require low-level skills from employees and are marked by low profit margins or tight cost controls. An example of an authoritarian leader is the traditional toothpaste manufacturer. Manufacturing toothpaste is a repetitive production and due to the low profit margins on each tube of toothpaste, decisions to tighten costs are arrived at the sole decision of the leader. Paternalistic leadership combines authoritarian leadership, or strong discipline and authority, with benevolent leadership, or fatherly care and concern for subordinates personal well-being. Examples of paternalistic leadership style are leaders of food and beverage restaurants. Fast food chain restaurants such as McDonalds and KFC are international brands. As certain standards and procedures are already in place, leaders make decisions to be aligned with the international standards but also have an open-door policy that concentrates on building relationships with the employees. A participative leader shares decision making with group members and accepts suggestions although the final decision may vary as the leader has the final say. According to Lewin, participative leadership style can win the cooperation of employees and motivate them effectively. An example of a participative leadership style is a high-tech manufacturer. As technology is constantly changing, leaders in high-tech organizations promote two-way communications and embrace suggestions from employees. Apple and Microsoft encourage their employees to share ideas and feasible suggestions are later decided to incorporate into their products. The laissez-faire leadership style minimizes the leaders involvement in decision-making and allows employees to make their own decisions such as setting their own policies and methods. Laissez-faire leaders may still be responsible for the outcome of their employees decisions. Laissez-faire works best when people are capable and motivated in making their own decisions and there is no requirement for a central coordination. An example is an entertainment firm that specializes in provision of performance arts. When dealing with a range of artists, employees must be given the freedom to decide on the soft-people skills to tackle each artist. As such, a centralized structure is not feasible for such a versatile industry. Another example is the modeling agencies. As models responsibilities are to portray the clients advertising intents, models must be given the freedom to work closely with the clients. Thus due to the unique nature of the working environment, laissez-faire leadership styl e is more appropriate for the management of such entertainment and modeling agencies. A Leadership Grid (Contingency Leadership Styles) A1. Traditional manufacturer (eg. tooth paste factory) A2. Hi-tech manufacturer (eg. SD card maker; involve hardware + software development) B1. FB restaurant (eg. Food stalls, seafood restaurants) B2. Fast food chain restaurant (eg. McDonalds, KFC) C1. Entertainment firm specializes in provision of performance arts, with a range of artists C2. Agency that represents fashion models, trains models, get test shoots and layout portfolios High A2 B1 B2 Low C1 C2 A1 Low High Concern for People vs Concern for Work Explain how to read the above diagram. Use a separate same diagram to include the relevant job functions/titles (if you want to extend your explanation!) The Leadership Grid also known as Managerial Grid, developed by Robert Blake and Jane Mouton, is a framework that simultaneously specifies concern for the production and people dimensions of leadership because to achieve effective leadership, leader must integrate the task and relationship orientations. Concern for production is the degree to which a leader emphasizes on concrete objectives, organizational efficiency and high productivity when deciding how best to accomplish a task. Concern for people is the degree to which a leader considers the needs of team members, their interests, and areas of personal development when deciding how best to accomplish a task. Low People, Low Work (Impoverished Leadership) Similar to laissez-faire leadership, this leader is mostly ineffective. He has neither a high regard for creating systems for getting the work done nor for creating a work environment that is satisfying and motivating. The result is a place of disorganization, dissatisfaction and disharmony. Entertainment firm and modeling agencies use this leadership style. Leaders of entertainment firm empower employees the flexibility to deal with artists due to the different personality of artists. Similarly, leaders of modeling agencies do not interfere with the models job. As models are required to display the fashion personality of the clients apparel, they are given the freedom to work closely with clients to ensure objectives are met and clients satisfaction is maximized. Low People, High Work (Produce or Perish Leadership) This style of leader is also known as Authoritarian or Compliance Leaders. These leaders believe that employees are simply a means to an end. Employee needs are always secondary to the need for efficient and productive workplaces. This type of leader is very autocratic, has strict work rules, policies and procedures, and views punishment as the most effective means to motivate employees. (Theory XY) Traditional manufacturer uses this leadership style. Such organization has a set of policies and procedures for employees to abide. Furthermore, mechanized technologies are used in the production of toothpaste which leads to minimal human interference. As such, employees are seemed as an operation tool in the production of toothpaste (the result). High People, Low Work (Country Club Leadership) The leader is most concerned about the needs and feelings of members of his team. These leaders operate under the assumption that as long as team members are happy and secure, they will work hard. What tends to result is a work environment that is very relaxed and fun but at the expense of production due to lack of direction and control. High People, High Work (Team Leadership) This is the pinnacle of managerial style. These leaders stress production needs and the needs of the people equally highly. The premise here is that employees are involved in understanding organizational purpose and determining production needs. When employees are committed to, and have a stake in the organizations success, their needs and production needs coincide. This creates a team environment based on trust and respect, which leads to high satisfaction and motivation and, as a result, high production. (Theory Y) Hi-tech manufacturer uses this leadership style. Due to the advancement of technology, these organizations need to respond quickly to the change in environment to stay competitive. As such, leaders often convey and instill the organizations objective in employees to achieve organizations success. Also, leaders encourage employees to share their suggestions into making the organizations products more successful. Such leadership ensures organizations success and employees fulfillment. FB restaurants and fast food chains use this leadership style. Such organizations focus on delivering customer satisfactions through their food. These organizations embed the human touch element in their culture. While the quality of the food is not compromise, leaders of such organizations show care and concern for their employees. Due to personal commitments, the leaders may allow the employees to adapt a flexi-working hours which can greatly affect the manpower during peak periods. The Managerial Grid A1. Traditional manufacturer (eg. tooth paste factory) A2. Hi-tech manufacturer (eg. SD card maker; involve hardware + software development) B1. FB restaurant (eg. Food stalls, seafood restaurants) B2. Fast food chain restaurant (eg. McDonalds, KFC) C1. Entertainment firm specializes in provision of performance arts, with a range of artists C2. Agency that represents fashion models, trains models, get test shoots and layout portfolios (9, 9) (9, 1) (1, 9) (5, 5) (1, 1) 1 Low Concern for Production 9 High High 9 1 Low Concern for People Explain how to read the above diagram. Use a separate same diagram to include the relevant job functions/titles (if you want to extend your explanation!) The Managerial Grid also known as Leadership Grid, developed by Robert Blake and Jane Mouton, is a framework that simultaneously specifies concern for the production and people dimensions of leadership because to achieve effective leadership, leader must integrate the task and relationship orientations. Concern for production is the degree to which a leader emphasizes on concrete objectives, organizational efficiency and high productivity when deciding how best to accomplish a task. Concern for people is the degree to which a leader considers the needs of team members, their interests, and areas of personal development when deciding how best to accomplish a task. According to Blake and Mouton, the Managerial Grid defined the following five leadership styles: Produce or Perish Leadership (9,1 high production, low people) This style of leader is also known as Authoritarian or Compliance Leaders. These leaders believe that employees are simply a means to an end. Employee needs are always secondary to the need for efficient and productive workplaces. This type of leader is very autocratic, has strict work rules, policies and procedures, and views punishment as the most effective means to motivate employees. Traditional manufacturer uses this leadership style. Such organization has a set of policies and procedures for employees to abide. Furthermore, mechanized technologies are used in the production of toothpaste which leads to minimal human interference. As such, employees are seemed as an operation tool in the production of toothpaste (the result). Country Club Leadership (1,9 low production, high people) The leader is most concerned about the needs and feelings of members of his team. These leaders operate under the assumption that as long as team members are happy and secure, they will work hard. What tends to result is a work environment that is very relaxed and fun but at the expense of production due to lack of direction and control. Impoverished Leadership (1,1 low production, low people) This leader is mostly ineffective. He has neither a high regard for creating systems for getting the work done nor for creating a work environment that is satisfying and motivating. The result is a place of disorganization, dissatisfaction and disharmony. Entertainment firm and modeling agencies use this leadership style. Leaders of entertainment firm empower employees the flexibility to deal with artists due to the different personality of artists. Similarly, leaders of modeling agencies do not interfere with the models job. As models are required to display the fashion personality of the clients apparel, they are given the freedom to work closely with clients to ensure objectives are met and clients satisfaction is maximized. Middle-of-the-Road Leadership (5,5 middle production, middle people) This style seems to balance the two competing concerns. It may at first appear to be an ideal compromise. However, a problem lies within. When the leader compromise, he tends to give away a bit of each concern so that neither production nor people needs are fully met. Leaders who us this style settle for average performance and often believe that this is the most anyone can expect. FB restaurants and fast food chains use this leadership style. Such organizations focus on delivering customer satisfactions through their food. These organizations embed the human touch element in their culture. While the quality of the food is not compromise, leaders of such organizations show care and concern for their employees. Due to personal commitments, the leaders may allow the employees to adapt a flexi-working hours which can greatly affect the manpower during peak periods. Team Leadership (9,9 high production, high people) This is the pinnacle of managerial style. These leaders stress production needs and the needs of the people equally highly. The premise here is that employees are involved in understanding organizational purpose and determining production needs. When employees are committed to, and have a stake in the organizations success, their needs and production needs coincide. This creates a team environment based on trust and respect, which leads to high satisfaction and motivation and, as a result, high production. Hi-tech manufacturer uses this leadership style. Due to the advancement of technology, these organizations need to respond quickly to the change in environment to stay competitive. As such, leaders often convey and instill the organizations objective in employees to achieve organizations success. Also, leaders encourage employees to share their suggestions into making the organizations products more successful. Such leadership ensures organizations success and employees fulfillment . The model proposes that when both people and production concerns are high, employee engagement and productivity increases accordingly. This is often true and it follows the ideas of Theories X and Y, and other participative management theories. Transformational vs Transactional Leadership A1. Traditional manufacturer (eg. tooth paste factory) A2. Hi-tech manufacturer (eg. SD card maker; involve hardware + software development) B1. FB restaurant (eg. Food stalls, seafood restaurants) B2. Fast food chain restaurant (eg. McDonalds, KFC) C1. Entertainment firm specializes in provision of performance arts, with a range of artists C2. Agency that represents fashion models, trains models, get test shoots and layout portfolios Transformational Leader Transactional Leader A2 C1 C2 A1 B1 B2 Explain how to read the above diagram. Use a separate same diagram to include the relevant job functions/titles (if you want to extend your explanation!) Transactional leadership assumes that work is done only because it is rewarded and thus the leader focuses on designing tasks and reward structures. It may not be the most appealing leadership strategy in building relationships and developing a long-term motivating work environment, it is workable in most organizations on a daily basis to get work done. This leadership style starts with the idea that employees agree to obey their leader totally when they accept a job. The leader has a right to punish the employees if their work does not meet the standard. Under transactional leadership, little can be done to improve employees job satisfaction. Transactional leadership is a type of management rather than a true leadership style because the focus is on short-term tasks. It has serious limitations for knowledge-based or creative work. Examples of transactional leadership can be found in traditional manufacturer organisations, FB restaurants and fast food chain restaurants. Work structur es in these organizations are typically standard and routine and thus, employees experience minimal job satisfaction. In these organizations, the relationship between the leader and employees is similar to that of a transaction, whereby the leader rewards/pays the employees for the work done. Transformational leaders are true leaders who inspire employees constantly with a shared vision of the future. They are exceptionally motivating and trusted. While this leaders enthusiasm is often passed onto the team, he needs to be supported by detail people. That is why in many organizations, both transactional and transformational leadership are needed. The transactional leaders (or managers) ensure that routine work is done reliably while the transformational leaders look after initiatives that add value. Transformational leaders are found in hi-tech manufacturer, entertainment firm and modeling agency. Leaders in such organizations have the vision and foresight to bring the organizations to greater heights through a healthy and interactive relationship with the employees. Leaders in hi-tech manufacturer such as Apple welcome and embrace suggestions from employees to improve its products that appeal to the consumers. As such, Apple has been very successful over the years in prod ucing gadgets for consumers worldwide. Leaders in entertainment firms strive to bring their arts to the world and promote their countries cultural arts. This is to prevent the extinction of cultural arts. Leaders in modeling agencies usually have the passion for fashion. They inspire models to display and bring to life the fashion personality of the designers. (E) A1. Traditional manufacturer (eg. tooth paste factory) A2. Hi-tech manufacturer (eg. SD card maker; involve hardware + software development) B1. FB restaurant (eg. Food stalls, seafood restaurants) B2. Fast food chain restaurant (eg. McDonalds, KFC) C1. Entertainment firm specializes in provision of performance arts, with a range of artists C2. Agency that represents fashion models, trains models, get test shoots and layout portfolios Theory X Theory Y A1 B1 B2 A2 C1 C2 Explain how to read the above diagram. Use a separate same diagram to include the relevant job functions/titles (if you want to extend your explanation!) Accordingly Douglas McGregor, Theory X (authoritarian management style) assumes that the average person has an inherent dislike of work and will avoid it if he can. Because of their dislike for work, most people must be controlled and threatened before they will work hard enough. The average person prefers to be directed, dislikes responsibility, is unambiguous and desires security above everything. These assumptions give rise to both tough management with punishments and tight controls, and soft management which aims at harmony at work. In actual facts, a person needs more than financial rewards at work. He also needs some deeper higher order motivation such as the opportunity to fulfill himself. Theory X managers however, do not give their employees this opportunity. In traditional manufacturer organizations, FB restaurants and fast food chain restaurants, jobs are often rigid and routine. Basically, employees do not expect any variances in their daily work. Thus they are tasked to simply perform routine work without the need to bother about anything else. According to McGregor, Theory Y (participative management style) assumes that the physical and mental effort in work is as natural as play or rest. Control and punishment are not the only methods to make people work. Man will exert self-direction if he is committed to the organizations aims. The average man learns under proper conditions not only to accept but to seek responsibility. A large number of employees use imagination, creativity and ingenuity to solve work problems. Although Theory Y is difficult to put into practice on the shop floor in large mass production operations, it is used initially to manage managers. In situations where it is possible to obtain commitment to objectives, it is better to explain the matter fully so that employees grasp the purpose of an action. They will then exert self-direction and control to do better work than if they had simply carry out an order. In hi-technology organizations, entertainment firms and modeling agencies, employees are often pa ssionate about the jobs and thus are empowered to take on greater responsibility in handling situations. Due to the uncertainty of the industries, employees need to respond timely to environmental changes. In a nutshell, McGregor wants managers to put into operation the basic assumption that Staff will contribute more to the organization if they are treated as responsible and valued employees. (F) A1. Traditional manufacturer (eg. tooth paste factory) A2. Hi-tech manufacturer (eg. SD card maker; involve hardware + software development) B1. FB restaurant (eg. Food stalls, seafood restaurants) B2. Fast food chain restaurant (eg. McDonalds, KFC) C1. Entertainment firm specializes in provision of performance arts, with a range of artists C2. Agency that represents fashion models, trains models, get test shoots and layout portfolios Transformational A2 C1 C2 Transactional A1 B1 B2 Theory X Theory Y Explain how to read the above diagram. Use a separate same diagram to include the relevant job functions/titles (if you want to extend your explanation!) The concept of transactional and transformational leadership, and Theories X and Y has been covered in the above questions. Transactional leadership Theory X Due to the routine and rigidity of work in traditional manufacturing organizations and FB restaurants, leaders believe that employees dislike work and will avoid it if possible. Thus, transactional leadership is often used in these organizations to reward employees in order to get work done. Transactional leadership Theory Y As most fast food chain restaurants already have worldwide presence, transactional leaders must ensure that the restaurants standard is consistent with the chains predetermined principles. In order to achieve this, leaders engage in a transaction relationship with employees by providing adequate rewards to employees. However, cultures across countries vary. Understanding this cultural difference, country leaders encourage employees to share their views to improve the fast food restaurants into a better dining choice for consumers. Transformational leadership Theory Y Hi-technology manufacturing organizations, entertainment firms and modeling agencies adapt transformational leadership because leaders are ambitious and believe that the organizations have the capability to attain greater heights. Leaders in such organizations share and instill the organizations vision to employees and highlight that every employees play an important part in the organizations success. Due to the turbulent environment of these industries, employees are empowered with the flexibility to solve work problems. As such, employees are encouraged to assume greater responsibility. (G) A1. Traditional manufacturer (eg. tooth paste factory) A2. Hi-tech manufacturer (eg. SD card maker; involve hardware + software development) B1. FB restaurant (eg. Food stalls, seafood restaurants) B2. Fast food chain restaurant (eg. McDonalds, KFC) C1. Entertainment firm specializes in provision of performance arts, with a range of artists C2. Agency that represents fashion models, trains models, get test shoots and layout portfolios organic organization A2 B2 C1 C2 mechanistic organization A1 B2 Theory X Theory Y Explain how to read the above diagram. Use a separate same diagram to include the relevant job functions/titles (if you want to extend your explanation!) Mechanistic organizations have clear well-defined, centralized, vertical hierarchies of command, authority and control. Efficiency and predictability are emphasized through specialization, standardization and formalization. As such, it results in rigidly defined jobs, technologies and processes. Organizational structures, processes and roles function like a machine in which each part of the organization does what it is designed to accomplish. Mechanistic organizations are often appropriate in stable environments and for routine tasks and technologies. Organic organizations are decentralized with flexible, broadly defined jobs and have relatively few and broadly defined rules, procedures and processes. Such organizations focus on interdependence among employees and units, multi-directional communication, employee initiative, and employee participation in problem solving and decision making. Organic organizations are highly suitable for unstable, turbulent environments and for non-routine tasks and technologies. In organic organizations, the emphasis is on effectiveness, problem solving, responsiveness, flexibility, adaptability, creativity and innovation. Such an organization responds timely to environmental change because employees are empowered to be creative, to experiment and to suggest new ideas. The process of innovation is triggered by employees throughout the organization in a bottom-up manner. The concept of Theories X and Y has been covered in the above questions. Mechanistic organization, Theory X A traditional manufacturing organization operates in a relatively stable environment and jobs are often rigidly defined. Such organizations adapt mechanistic management system whereby production processes and techniques are employed to minimize waste and maximize outputs for a given quantity of inputs. The ultimate goal of mechanistic structure is efficiency. Due to the routine and non-challenging daily work, leaders believe that employees dislike work and will avoid it if possible. Thus, transactional leadership is often used in these organizations to reward employees in order to get work done. Mechanistic organization, Theory Y As most fast food chain restaurants already have worldwide presence, there is clear command and control to ensure that every countrys restaurants standard is consistent with the chains predetermined principles. Thus, mechanistic structure is employed to achieve the desire objective. Recognizing the cross-cultural differences, country leaders encourage employees to share their views to improve the fast food restaurants into a better dining choice for consumers. Organic organizations, Theory Y Hi-technology manufacturing organization, FB restaurants, entertainment firms and modeling agencies operate in a highly turbulent environment and are very vulnerable to competition. Thus, these organizations employed the organic management system to respond timely to the environmental changes. Employees are required to work cross-functionally cohesively to ensure challenges are addressed promptly. Employees in such organizations identify themselves with the organizations and assume greater responsibility to ensure corporate success. (H) A1. Traditional manufacturer (eg. tooth paste factory) A2. Hi-tech manufacturer (eg. SD card maker; involve hardware + software development) B1. FB restaurant (eg. Food stalls, seafood restaurants) B2. Fast food chain restaurant (eg. McDonalds, KFC) C1. Entertainment firm specializes in provision of performance arts, with a range of artists C2. Agency that represents fashion models, trains models, get test shoots and layout portfolios organic organization A2 C1 C2 mechanistic organization A1 B1 B2 Transactional leadership Transformational leadership Explain how to read the above diagram. Use a separate same diagram to include the relevant job functions/titles (if you want to extend your explanation!) The concepts of mechanistic and organic organization, as well as transactional and transformational leadership have been covered in the above questions. Due to the routine and rigidity of job scope in the traditional manufacturing organizations, FB restaurants and fast food chain restaurants, these organizations have a mechanistic structure with well-defined command and control. Employees suggestions and views usually have no impact on the organizations decisions. Thus due to the lack of job satisfactions in employees, transactional leadership is usually used in such organizations to get work done. As hi-technology manufacturing organizations, entertainment firms and modeling agencies operate in a highly unstable environment and are vulnerable to competitions, organic structures are more appropriate to ensure changes to the environment are responded to promptly. Such organizations are led by transformational leaders as they have the foresight and motivation attributes to influence and lead the employees and organizations towards greater heights. Most importantly, transformational leaders have the ability to solve problem efficiently. (I) A1. Traditional manufacturer (eg. tooth paste factory) A2. Hi-tech manufacturer (eg. SD card maker; involve hardware + software development) B1. FB restaurant (eg. Food stalls, seafood restaurants) B2. Fast food chain restaurant (eg. McDonalds, KFC) C1. Entertainment firm specializes in provision of performance arts, with a range of artists C2. Agency that represents fashion models, trains models, get test shoots and layout portfolios Transformational A2 C1 C2 Transactional A1 B1 B2 Authoritarian Paternalistic Participative Laissez-faire Explain how to read the above diagram. Use a separate same diagram to include the relevant job functions/titles (if you want to extend your explanation!) The concepts of transactional, transformational, authoritarian, paternalistic, participative and laissez-faire leadership have been covered in the above questions. Transactional and authoritarian leaderships are employed in traditional manufacturing organizations. As the job scopes are routine and well-defined, employees are required to follow and adhere to instructions from the management. Little variations occur in such organizations. Furthermore, due to the lack of job satisfactions in employees, leaders reward employees so as to get the work done promptly. If employees work standard falls below expected, leaders have the rights and authority to impose punishment on employees. Transactional and paternalistic leaderships are used in FB restaurants and fast food chain restaurants. Instructi