N201 Leadership In Business - Assessment Answers
Case 1
In 2001 and 2002, HP and Compaq were merged for #1 global revenue positions in servers, access devices (PCs and handhelds) and imaging and printing, as well as leading revenue positions in IT services, storage and management software. Early statements showed that the merger would occur in at least 15,000 lost employment and unique culture at HP that would concentrate on sales and services, preferably than engineering innovation. Carly Fiorina, CEO of HP cut suspected R&D expenditure is terrible for a percentage of the sale in HP. Packard, the eldest son of one of the founders of HP, sent a statement to shareholders on November 11, 2001. Packard’s comment strongly suggested that the new leadership of HP disrespected employees. That makes employees of HP to distrust, dissatisfaction and productivity. (Kimberly D. Elsbach, Ileana Stiglian, Amy Stroud, 2016)
In this case, CEO of HP Cindy Florina use authority to accomplish the task of the merger with Compaq because she had to complete the task beside of employee dissatisfaction. Changing are not acceptable to intimacy work life. Ms Florina decides without care of employee dissatisfaction. That lead to tension media fight between the company’s public figures. Also, lead HP’s employees to disturb of on the Clary Florina. As a manager in this situation he or she likely to choose the decision like Clary Florina to complete the task of organisation. As a leader in this situation, he will likely to ask advice and discussion to a stakeholder of HP.
Case 2
After the merger of Compaq, employees are dissatisfied and distrust of the organisation leadership. To regain the trust and motivate people is essential to increase productivity. In March of 2005, Mark Hurd was appointed as new CEO of HP. Instantly, he made apparent his intention of bringing back and abide by to the original HP way. He is very comfy to HP employees. It makes public opinion to see him positively. However, he was pretended to restore the old HP culture. He had made series of decisions in sharp difference with the old values of the HP way which earned the label of “the Hurd way” emphasising his autocratic leadership style. On April 2006, he fired 15300 jobs, nearly 10% in total of organisation and he hired external executives from Siemens, Palm One, and Dell instead of internal HP leaders who had grown their careers over many years at HP. That lead current employees to dissatisfaction again to new leadership. (Kimberly D. Elsbach, Ileana Stiglian, Amy Stroud, 2016)
In this situation, the manager will do things and work done in order. As a manager, he or she will maintain the organisation images and many aspects that against the image of the organisation. In Mark Hurd case, he pretended to restore the old HP culture rather than motivate people in cultural transformation. Unless careful about the dissatisfaction to employees to rather than replacing the vacant executive positions from outside of HP. Addition, he uses an autocratic leadership style to complete the task of organisation. As a manager, to regain the trust form employee he or she will likely to use instructions, following specific procedures. This led to system leadership style.
As a leader in this situation, he or she will probably motivate people or encourage people in this transformation of culture. The leader will be creating a sustainable moment in a changing the environment.
Leadership theories in a situation
In case of a merger with Compaq, CEO of HP use authority to accomplish the task to the merger with Compaq because she uses task-orientated style beside of employee dissatisfaction. Changing are not acceptable to intimacy work life. That indicates Ms Florina using classical management theory to accomplishing her company task. If the manager in this situation, the manager will choose this decision to achieve the company task. As a leader in this situation, he will probably prefer the leader will like to accept the behavioural theory or situational theory.
In autocratic leadership, which contributes to order, consistency, and the resolution of conflict. One type of autocratic behaviour is initiating structure, are also likely to be seen as facilitating work and persuading. Autocratic leaders are stress obedience, loyalty, and strict adherence to roles. They make and enforce the rules. They understand that decisions are carried out (Smither, 1991). Influential autocratic leaders throughout history have often been praised for their ability to develop reliable and devoted followers and to act as the principal authority figures in establishing and maintaining order. The dark side of autocratic behaviour is abusiveness, creating fear and distrust, using arbitrary and unconditional punishment, ignoring subordinates’ information and inputs to decisions, and relying exclusively on one’s judgment. Authoritarian managers in work organisations as taking full responsibility for decisions and performance. They believe their assignment is to make decisions and see that the choices are carried out. (Calin, 2012)
Situational leadership and contingency are pretty bit similar to one another. Father of contingency theory Fred Edward Fiedler described as for him the effectiveness of task-oriented and relations-oriented leaders was contingent on the demands imposed by the situation. Leaders were assessed as task-oriented or relations oriented according to the way they judged their least preferred co-worker. If the situation was favourable to the leader. The group esteemed the leader; the task was structured, clear, simple, and easy to solve; and the leader had legitimacy and power in his or her position. The task-oriented leader was most likely to be effective in situations that were most favourable or most unfavourable to him or her. The relations-oriented leader was most likely to be useful in circumstances between the two extremes of favourable and unfavourable. Task-oriented people should be selected to lead in cases that are very favourable or unfavourable to the leaders; relations-oriented people should be chosen to lead in situations that are neither very high nor very low in favourability. Otherwise, leaders needed to learn how to change a situation to match their orientation. Some models of situational or contingent leadership have been constructed to provide advice to leaders on when they should be task-oriented and hence directive and when they should be relations oriented and therefore participative. (Bernard M Bass, Ruth Bass, 2008)
The impact of task and relationships orientation the findings have been mixed positive or negative. Explanations have been sought in situational contingencies. These situational contingencies need to be examined for their moderating effects on the impact of relations-and task-oriented leadership on the satisfaction and productivity of followers. For instance, Miner (1982a, 1982b) suggested that high-task, high-relations leadership orientation is most likely to be effective when organisations are a mix of systems of hierarchies and groups. The task orientation fits the hierarchies; the relations orientation fits the groups.
In case 2, after continually changes in the organisation. Employees of HP is dissatisfied and distrust of the leadership of HP. Mark Hud (CEO) use an autocratic and system leadership style in crisis. If a leader in this crisis, he would probably use transformational leadership.
Open-systems point of view implies sensitivity to the larger environment and organisation in which leaders and their subordinates are embedded. To convert inputs into outputs, flows of energy and information must occur in the system. In open systems, the effects of the outputs on the environment are feedback and new inputs. A manager like to use system theory for result-oriented because the unique culture of HP is focused on sale and service. Employees are not like to change the culture of the organisation. System leadership concentrate on the result rather than the employee satisfaction.
Transforming leadership elevates the follower’s level of maturity, ideals, and concerns for the well-being of others, the organisation, and society. Transforming leaders point to mutual interests with followers. They engage followers firmly without using power, using moral leadership. They transform individuals, groups, organisations, and societies. In case 2, the leader will probably use transformational leadership to motivate and encourage people in changes of organisation culture. (Bernard M Bass, Ruth Bass, 2008)
Answer
Introduction:
The report puts forward an analysis of leadership in business by identifying the strengths and weakness of various leadership theories. The theories of leadership under discussion are autocratic leadership, situational and contingency leadership, systems leadership and transformational leadership.
Critical Analysis of Strengths and Weakness of the Theories of Leadership
Autocratic Leadership
According to Iqbal, Anwar and Haider (2015), autocratic leadership describes the authoritarian leadership style where a team is able to reach a quicker solution often making errors and getting work accomplished compared to the other groups. This particular leadership style result in a quicker solution. This is followed in organizations that faces trouble and requires an immediate turnaround to ensure its survival.
Naile and Selesho (2014) however, the strength of the leadership style remains in the ability of the leader in choosing the accurate path for an organization when it approaches towards critical intersection. As the leadership style is dependent upon a situation there may be instances when the leader might not be aware of the best solution. Certain aspects remain integral to a situation which the leaders must consider before providing a solution. According to Khan et al. (2015), this leadership style also comes with various weaknesses. Autocratic leadership does not provide a chance in learning from the mistakes and thereby results in lower productivity in the long term. This leadership style has a presence of hostility. Besides, in these leadership skills when the leader remains weak it results in worse situation thereby making him unpopular amongst his subordinates. Another weakness of this leadership style remains in the people being empowered rather than ordered that implies they are trusted for accomplishing their work. This acts as a demotivating factor for the majority subordinates thereby resulting in lower morale.
Situational and Contingency Leadership
According to Thompson and Glaso (2015), situational leadership refers to the leadership style where a manager or leader adjusts his style for matching the development of the workers he is planning to influence. Here, the style of leadership might undergo continuous change for meeting the needs of the people depending on a situation.
Yukl (2013) however mentioned that the strength of the situational leadership lies in putting forward a credible model for training the people in becoming effective leaders. Moreover, this style of leadership can be easily understood and applied sensibly in varied situations. The strength of this leadership approach also lays its leader flexibility. Ghasabeh, Soosay and Reaiche (2015) criticizes this leadership style saying that it hardly addresses the issue of one to one versus the group leadership within organizational setting.
In contrary to this Dinh et al. (2014) defined contingency leadership as the leadership style that emphasizes the effectiveness of the leadership efficiency on matching the style of the leader to the right situation.
Fiedler (2015) stated that the strength of the leadership approach lies in its reliability in achieving effective leadership since it is based on the empirical research. He also stated that this style of leadership emphasizes on implementing a leadership style based on the situation. It was further stated that the leadership approach helped in determining the most suitable kind of leadership based on particular situation. It also helps organizations in developing the leadership profiles for human resource planning. According to Daft (2014), the weakness of contingency leadership lies in the fact that it does not have enough solutions for undertaking action in different situations. Although the approach seems simple but becomes complicated when put to action. Moreover, this is quite reactive instead of being proactive.
Systems Leadership
According to Macdonald, Burke and Stewart (2017), systems leadership enables leaders within an organization in creating situations where the people at all the levels works productively based on their potential. This leadership provides the leaders with tools that help in predicting the behavior of the people within organizations.
Becerra-Fernandez and Sabherwal (2014) stated that the strength this leadership style enabled in enhancing the adaptability of the organization to the environmental changes. This style of leadership is dynamic and adaptive and focuses on the uniformity of decision making. On the other hand Van Wart (2013) stated that the weakness of this leadership style lies in the delays of decision. This leadership style also does not cater to the contingencies or a specific style of functioning within the organization. However, systems leadership may not be applicable to smaller organizations.
Transformational Leadership
Braun et al. (2013) defined transformational leadership as the leadership style where the leader undertakes working with a team for identifying the needed change and creating the vision for guiding the change through motivation and thereby executing the change along with the committee members within a group.
Breevaart et al. (2014) stated that strengths of transformational leadership helps in finding a better way to leadership. This style of leadership helps in finding out the things that does not work in carrying out the leadership activities. This type of leadership approach caters to the niche market. On the contrary, Kovjanic, Schuh and Jonas (2013) pointed out the weakness stating that this leadership style involves huge risk in putting people off by taking up challenges. This leadership approach creates conflict with people resisting change.
Conclusion:
On a concluding note it can be said that each of the leadership theories attempts in putting forward a description of successful leaders characterized by some strengths and weakness. The strengths and the weakness depend upon situation that forces the leader in adapting the befitting traits of leadership.
References:
Becerra-Fernandez, I. and Sabherwal, R., 2014. Knowledge management: Systems and processes. Routledge.
Braun, S., Peus, C., Weisweiler, S. and Frey, D., 2013. Transformational leadership, job satisfaction, and team performance: A multilevel mediation model of trust. The Leadership Quarterly, 24(1), pp.270-283.
Breevaart, K., Bakker, A., Hetland, J., Demerouti, E., Olsen, O.K. and Espevik, R., 2014. Daily transactional and transformational leadership and daily employee engagement. Journal of occupational and organizational psychology, 87(1), pp.138-157.
Daft, R.L., 2014. The leadership experience. Cengage Learning.
Dinh, J.E., Lord, R.G., Gardner, W.L., Meuser, J.D., Liden, R.C. and Hu, J., 2014. Leadership theory and research in the new millennium: Current theoretical trends and changing perspectives. The Leadership Quarterly, 25(1), pp.36-62.
Fiedler, F.R.E.D., 2015. Contingency theory of leadership. Organizational Behavior 1: Essential Theories of Motivation and Leadership, 232, pp.01-2015.
Ghasabeh, M.S., Soosay, C. and Reaiche, C., 2015. The emerging role of transformational leadership. The Journal of Developing Areas, 49(6), pp.459-467.
Iqbal, N., Anwar, S. and Haider, N., 2015. Effect of leadership style on employee performance. Arabian Journal of Business and Management Review, 5(5), pp.1-6.
Khan, M.S., Khan, I., Qureshi, Q.A., Ismail, H.M., Rauf, H., Latif, A. and Tahir, M., 2015. The styles of leadership: A critical review. Public Policy and Administration Research, 5(3), pp.87-92.
Kovjanic, S., Schuh, S.C. and Jonas, K., 2013. Transformational leadership and performance: An experimental investigation of the mediating effects of basic needs satisfaction and work engagement. Journal of Occupational and Organizational Psychology, 86(4), pp.543-555.
Macdonald, I., Burke, C. and Stewart, K., 2017. Systems leadership: Creating positive organisations. Routledge.
Naile, I. and Selesho, J.M., 2014. The role of leadership in employee motivation. Mediterranean Journal of Social Sciences, 5(3), p.175.
Thompson, G. and Glasø, L., 2015. Situational leadership theory: a test from three perspectives. Leadership & Organization Development Journal, 36(5), pp.527-544.
Van Wart, M., 2013. Lessons from leadership theory and the contemporary challenges of leaders. Public Administration Review, 73(4), pp.553-565.
Yukl, G.A., 2013. Leadership in organizations. Pearson Education.
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