Business Organisation and Behaviour - Term Paper Example

Business Organisation and Behaviour Table of Contents Table of Contents 1 Abstract 2 Introduction 3 Description of Leadership Styles 3 Definition of Leadership Styles 3 Types of Leadership Styles and their Effectiveness 4 Transactional Leadership Style 4 Transformational Leadership Style 4 Laissez-Faire Leadership 5 Vodafone’s Leadership Style 5 Organisational Theory on Vodafone 5 Scientific Management 5 Classical Administration 6 Bureaucracy 6 Management Approaches 7 Human Relations Approach 7 Systems Approach 7 Conclusion 7 References 9 Abstract This paper seeks to analyse various theoretical leadership styles that have been conceptualised by various theorists and explore how these models practically work in the real world. To determine and demonstrate this practicability, a case study of Vodafone is evaluated and its current state of leadership unfolded. Leadership styles are of huge interest owing to their role in steering an organisation towards meeting its objectives and eventual success. The organisational theory under which Vodafone Company operates is also critically analysed to understand its all-round dynamics as far as the management and operations of Vodafone is concerned. Another key item considered is diverse management approaches that Vodafone uses as compared to those deployed by its competitors. These assessments and evaluations are done using explorative literature analysis of various sources. A conclusion is then drawn to summarise the whole discussion. Introduction That which brings the distinction between leadership and mere management is the approach that the former uses. Many firms fail to succeed in the quest to meet their long-term objectives as they lack one of the most vital elements in the running of business organisations which is effective leadership. There is further clear difference between just leadership and an effective one. The root source of a business proliferation in the market and sustained high performance is the kind of leadership it has. The ability to gain loyalty, inspire a team and make the diverse workforce operate as a single unit is what makes leadership special. For effective functionality, it is a prerequisite that a good and healthy coordination structures are put in place commanded or regulated by an excellent leader. Many leaders, however, fail to deliver effective leadership because of the wrong and inapplicable styles that probably do not match the nature of the business they are handling or are rigid as to accommodate the market situation. Choosing the best leadership style is not an option if effective leadership is anticipated. Management approaches and organisational theories that businesses subscribe to largely affect, just like in leadership, their eventual performance (Griffin and Moorhead, 2012: 100). This paper aims at evaluating these factors bit by bit as it relates them with the practical case of Vodafone so as to bring out a comprehensive outcome about their interplay in the organisation. Description of Leadership Styles Definition of Leadership Styles According to Griffin and Moorhead (2012: 76), leadership styles are approaches that a person in a regulatory or commanding position applies in order to gain loyalty and large follow-up base that would enable them steer the team into implementing or acting upon their requests or directives so as to achieve a specified goal. In this regard, leadership styles are, therefore, those strategies that promote the relationship between the leader and their followers as they aim to work together for certain goal(s). Types of Leadership Styles and their Effectiveness Transactional Leadership Style This is a leadership style that is primarily focused on motivating well-performing followers. It sets standards to be met and once the followers reach those targets, they are rewarded. The style is more of creating healthy social relationships in which both the leader and the follower engage more at a personal level so as to promote performance. For instance, a team leader may roll down to the followers and promises them that anyone who meets certain level of performance will be rewarded. Consequently, the team leader can decide and use active management in which they rectify any mistakes that followers make. Sometimes the leader might ignore the problem until it explodes. This style is effective in motivating follower to perform better (Mcauley, Duberly and Johnson, 2013: 66). Transformational Leadership Style This is a leadership that is primarily based on inspiration and empowerment of the followers by the leader. All the leader aim at is to see their followers grow up to become as they are or even better. It involves using tactics that can make the followers generate self-confidence and high esteem that can enable them to develop and become top performers. Transformational leadership is not only focused on the task or project but also the welfare of the follower. It is effective in winning the loyalty of followers. Also it enables the followers to record long term performance and personal growth (Jones, 2013: 144). Laissez-Faire Leadership This is the style of leadership in which a leader distances themselves from the followers. The followers are bundled with the responsibility of carrying out the formulation and implementation of various policies and decisions with no supervision of the leader. This style is effective in followers who understand what is done but it cannot work on young unexperienced workforce. It nurtures a sense of responsibility among followers. Vodafone’s Leadership Style Vodafone uses a combination of Laissez-Faire leadership and transformational style in which the employees are left to make their own decisions and implement them and at the same time inspired to achieve confidence in their work. Building an employee’s confidence is significant for Vodafone as the efforts to make supervisions are reduced. Employees grow to acquire honesty and trustworthiness that make their relationship with the organisation worthwhile. Organisational Theory on Vodafone Scientific Management This is based on using principles in guiding organisational practice. This would clearly state the procedures and processes to be followed during operations so as to achieve efficiency. Organisations that have clearly outline criteria of operations are more likely to succeed in the long run than those that gamble. Vodafone therefore is better placed when it uses scientific management system that allows it to technical approach its operations (Werner and Desimone, 2012: 107). Classical Administration This is more of management based on classical standards in which structure are put such that workers at Vodafone can only report to one head. This would mean that other seniors cannot control a worker from another department, something that would bring inefficiencies in work flow. Although classical administration may sound as a harsh system, it ensures clear definition of duties and responsibilities such that each and every manager or employee knows what is expected of them. It demarcates the jurisdiction under which one’s power starts or ends (Daft, 2010: 119). Bureaucracy This theory describes that workers at Vodafone should have a clear chain of power. It also requires that employees should work to achieve same results no matter which work undertake the work. In the contemporary society today, many companies have resorted to this model as it enables close supervision as well as easy regulation within the company. Management Approaches Human Relations Approach This approach focuses on strategies to create a good relationship and a positive working environment for the worker so they may form attitudes, perceptions and ideas that can see them achieve exemplary performances. Vodafone uses this approach to psychologically engage the employees with the company. Bellvantage, one of its rivals uses much more erudite approach to engage its employees (Nelson and Quick, 2010: 90). Systems Approach This approach divides the organisation into two; the external and internal environment. It is used to integrate the two units to function in a coordinated manner to achieve the common set goals. An organisation that work as a system is well coordinated and goals that are set can easily be reached no matter the diversity that exist within the workforce. For instance, a large company that has several professionally-varied workers can easily manage the diversity by clearly combining the different systems together. Conclusion As seen, leadership and management of an organisation are very key in its stewardship towards achieving the set long term goals. The leadership structures and styles that the organisation uses will either bring it fortune or disgrace it. Transformational, transactional and Laissez-Faire among others are some of the leadership styles a company can deploy depending on the nature of its employees. They can also be combined as evidenced in Vodafone’s case to achieve better results. It is also significant to point out that the management approaches and the organisational theories that underpin an organisation all add up to influence its operations and achievements in the long run. Approaches such as systems and human relations are some of those that a company can use. All in all, the management team have a daunting task of evaluating their businesses and identifying the best approach to apply as these are what determine whether a company will endure and go through the challenges in the industry of fail. It is important that Vodafone maintains the management approach and the leadership styles it currently uses as they have demonstrated effectiveness in positively driving the organisation to success. References Daft, R.L. (2010) Organisation theory and design, Mason, Ohio, South-Western Cengage Learning. Griffin, R.W & Moorhead, G. (2012) Organisational behaviour: managing people and organisations, Mason, OH, South-Western/Cengage Learning. Jones, G.R. (2013) Organisational theory, design, and change. Upper Saddle River, NJ, Pearson. Mcauley, J., Duberley, J & Johnson, P. (2007) Organisation theory: challenges and perspectives, Harlow, Essex, England, Pearson Education Higher Education Division, Pearson Education Ltd. Nelson D.L & Quick, J.C. (2011) Organisational behaviour: science, the real world, and you, Mason, OH, USA, South-Western Cengage Learning. Werner, J.M & Desimone, R.L. (2012) Human resource development, Mason, OH, South-Western. Read More