Question

Research and describe five leadership theories. (Tip: check out changingminds.org for a list of leadership theories. This website is NOT an academic source so cannot be used in this paper, but it can help you find ideas which you will then research in the NAU Online Library. Do not use a category of theories like behavioral theories). For each theory, identify and explain which traits are exemplified. Provide a scenario that shows each theory in use. Select one leadership theory that you believe would be most effective in an organization of your choice (this can be a company, a government agency, a non-profit, etc.). Why would this theory be the best fit for this organization? How would it promote communication?

Answer 1

Q1) Below are five leadership theories -

Transactional Leadership - This leadership style is purely based on the transactions between the leader and employees. If the employees work hard, achieve the objectives and deliver the results, they are rewarded through bonuses, hikes, promotions etc. If the employees fail to achieve the desired results, they are punished by awarding lower ratings in the performance appraisal, denying opportunities etc.

In this style, leader lays emphasis on the relation with the followers.

It is a reactive style where the growth of the employee in the organization completely depends on the performance with respect to the activities and deliverables.

It is best suited for regular operations and for a settled environment by developing the existing organizational culture which is not too challenging.

It is a bureaucratic style of leadership where the leader concentrates on planning and execution rather than innovation and creation.

A transactional leader is short-term focused and result oriented. He/she doesn't consider long-term strategic objectives regarding the organization's future.

Transformational leadership – This leadership style is based on the inspirational and motivational aspects that the leader shares with the followers. The leader employs enthusiasm and charisma to motivate the employees to think out of the box.

In this style, leader lays emphasis on the values, morals, ideas and needs of the organization and the followers.

It is a proactive style of leadership where the organizational strategy and values are given priority and followers are expected to work around the strategic objectives.

It is best suited for transformation and change in the firm in a turbulent and challenging environment.

It is a charismatic leadership style where the leader concentrates on innovation and creation rather than daily planning and execution.

A transformational leader is long-term focused and idea oriented. He/she considers strategic shift and radical transformation as the means for organizational development.

Democratic leadership - Leader is one who is chosen or elected from the people and work for the people by considering their opinions. The qualities of this leader include humbleness, flexibility and adaptability, obedience, courage, vision etc. Apart from these traits the leader needs to be hardworking and should be an able decision maker.

Autocratic leadership - An Autocratic leader commands and leads the team towards achivement of the goals or objectives. Decision making is completely confined to the leader and the followers are expected to follow a set of rules, code of conduct, instructions etc. as directed by the leader. Any deviation from the instructions can result in punitive actions. It is difficult for followers to bring any change in the system/processes and even express their opinions.

Laissez-Faire Leadership - In this type of leadership, the followers or employees are free to express their opinions and even involve in decision making. It is more of a delegative leadership style where tasks are delegated and are expected to be completed by the respective task owner. This is normally observed in startup companies, R&D firms etc.

Q2) The theory that would be most effective in my organization which is a technology firm continuously trying to innovate to challenge the competition is Transformational Leadership.

As a technology firm, it needs to encourage its employees to come up with new ideas which can be incremental or radical which if implemented, would differentiate the firm from its competitors and help it attract investors and gain market share.

It would promote communication by bringing together the employees to work towards the common idea or objective by sharing thoughts and discussing with one another. It also fosters communication between the employees and the management for regular exchange of the information related to progress of the execution of the ideas.