Fiedlers Contingency Theory of Leadership - Essay Example

Management Question 1 This question requires narrating a situation in which a leader’s style of leadership is criticized according to the model provided by Fiedler’s Contingency Theory of Leadership. The theory states that the effectiveness of leadership contingent upon the situation in which a leader and the subordinates are involved. Three basic factors are presented by Fiedler, which play a key role in shaping up a particular stance of a leader in a specific situation. Those factors include Leader/Member Relation, Task-oriented structure, and Position Power. A leader tackles a specific situation based upon these factors. A leader can demonstrate such a behavior in which the relations, loyalty, trust, likeness and other similar items are expected from the subordinates. Such a leader is assumed to carry such leadership style, which has high rating on Leader/Member Relation. For task-oriented culture, subordinates know what their leader expects from them and how a job can be done in the most appropriate manner. That leader carries a high rating on task-oriented structure factor. Thirdly, effectiveness of leadership is also influenced by the power that the leader has and exerts upon the subordinates. To be more specific, Fiedler states that the leader would demonstrate only in a particular leadership style no matter what the situation is. His/her leadership style would be either task oriented or relationship oriented. In the subsequent parts, a specific situation is analyzed in which the leader demonstrates all the three factors, which influence his style of leadership. A. In a public accounting and audit firm, where the financial statements of an entity are audited, different sorts of leadership styles can be observed from the top management of the audit firm i.e. audit partners. Audit partner is the one who is responsible to sign the financial statements of many different clients at a time stating whether the financial statements are prepared in accordance with the applicable laws and regulations. Being a leader, the audit partner adopts either, a task oriented or relationship oriented style. There occurred a situation where a client, which had so many issues in its financial statements, required special attention of the audit partner who was primarily relationship-oriented leader. In such a situation, the audit partner had to deal diligently because the situational favorability of leadership style could affect the quality of assurance, which that client required. As a relationship-oriented leader, the audit partner informally talked to all the relevant subordinate managers who were serving that client at different times and on different occasions, regarding those issues that could have been encountered by the team so that every member of the team remain aware of those issues and their likely resolutions. Audit partner used these statements in order to make the subordinates aware of the sensitivity of issues that may arise during the audit engagement. “This client can create deadly issues because of the lack of evidence provided, I personally believe that you have tackled these sorts of issues in past as well. I hope you will remain in successful the way you treated the previous client having similar issues.” To another subordinate, the leader talked in this way, “I truly admire the way you have managed such hard clients. Now another chance you have got and you have to prove your skills once again, another bonus is waiting for you”. Rather than asking directly about the end-results, the audit partner utilized soft skills to tackle this sensitive client. Had there been a task-oriented audit partner, he would have called an official meeting to guide all the subordinate managers in a specific manner, would have asked them the end-results and ultimately told them the negative consequences in case of showing any inefficiency or careless effort. In the end, every subordinate took a special care of those issues, sorted them out accordingly, because they always like their leader’s style of leadership, and did not disappoint as their leader has already shown his trust and confidence in the capabilities of his subordinate managers. In this way, the financial statements were finalized and sent back to audit manager who later signed them with the appropriate audit opinion. B The style of leadership from the above situation can be regarded as relationship-oriented because he went to every respective team member individually and discussed all sorts of issues, which could have encountered during the audit engagement. He ensured the involvement and participation of all the team members so that the team members also feel the sense of ownership attached to that client. The leader showed them his trust, confidence, and belief in the capabilities of his subordinates. Subordinates also responded in the same manner because they always like their leader’s style of leadership as he motivates them by giving personal touches as well as allowing them to gain some rewards as well. C As far as the leadership situation is concerned, the audit partner obtained a high rating on Leader/Member Relation as he personally discussed the issues in his personal capacity rather than using his professional and boss related authority. He exploited the use of his personal contacts and relations with every individual team member and influenced them personally. From task-oriented structure point of view, even though every subordinate was expected to act in a specific way to tackle that client. However, due to sensitivity and critical issues pertaining to that particular point, the leader asked them informally to deploy different tactics to deal with that client. In this war, task-oriented structure turned out to be bad because the leader asked them to apply different techniques but not asked them to provide only certain results, in the end. In short, the leader earned a low rating on task-oriented structure. If Leader Position Power is considered, it can be clearly observed that the audit partner used the term “bonus” to show his position power to influence the subordinate team members to act in a certain way. He preferred to use his relationship skills, personal contact etc to achieve better productivity from the subordinates. In this way, the use of position power is turned out to be strong under this specific situation. D The leadership style of the audit partner can be considered as moderately favorable (scoring 3 out of 8) because he got what he actually wanted to get in the end from his subordinates. E It can be concluded from parts B and D that in the given scenario, that by adopting a relationship-oriented style of leadership in the given situation, the situation is turned out to be moderately favorable. By deploying participative style of leadership and remaining high on Leader/Member Relations based on the trust, likeness confidence, as well as motivating the subordinates by allowing them bonuses, the audit partner managed to reap the whole situation according to his expectations. Question 2 Diary of an Employee 10/20/12 5:10 PM Today, my manager commanded me to work overtime without any additional compensation. It was very daunting for me because none of the other employee was asked to do overtime. Earlier this morning, I had decided to leave exactly on time because last night, I had promised my son that we would have dinner in his favorite restaurant. 10/17/12 07:34 PM Recently, our company launched a new product into the market therefore; there was a lot of burden on the shoulders of our brand manager. He set a target of sales turnover of $30,000 per day. Sales team was strived hard to meet this target because he had motivated them by offering them fat bonus. Since the bonus was so healthy, large number of workers could not escape this opportunity. Hence, the Brand Manager manages to meet the desired target and subordinates are enthusiastic and motivated towards attaining the target. 10/09/12 03:10 PM Our company has recently installed new software named as SAP in all the departments of the company. An expert SAP professional had been hired to teach this software to managers. Managers had to follow the instructions of the expert since he is the only one who possesses all the technical knowledge of this software. Subordinates did not have any other choice except following the directions of the SAP Expert. Analysis of Diary’s Statement “What every manager should know about using power in my organization” In the first example, manager just ordered his employee to work overtime without additional compensation. The worker must have felt very discouraging since he had other planning at that time. Moreover, the idea of not providing additional compensation would have even lowered down the morale of that employee. In such case, how is it possible for an employee to provide effective results? In the second example, the Brand Manager had commanded the sales team to make sales of $30,000 daily. The Brand Manager offered them reward, which made it easier to achieve this daily target since most of the subordinates could not miss the opportunity of getting such a huge bonus. In the last example, subordinates have to follow the directions of the SAP Expert since he is the only one who can teach them about this software. In the above-mentioned examples, we have observed that different managers use different powers to get their employees carrying out a certain task. Powers that are used by managers not only depends upon the situations, but heavily depends upon the personality of managers. Question 3 Motivation Problem Motivation problem occurred in the marketing department of our organization where the managers feel lack of motivation due to absence of specific goals. The marketing manager shaped up an environment where tasks are assigned in a vague manner such that the marketing manager had the habit of not informing the details, sensitivity, and importance of the task. Diagnosis of the Problem For instance, once he assigned a task to design the logo for a particular product. Only this piece of information created a sense of de-motivation for that employee, as he was not instructed about the details of such goal. The marketing manager did not tell about the specific time-period in which the logo should be designed, the specific ideas that should be reflected from that logo, the way in which the design of logo would be evaluated and many other instructions were missing. In this way, the motivation problem occurred because the goal set by marketing manager was quite unambiguous. Recommended Solution According to goal setting theory, the above motivation problem could have been resolved by managing a proper discussion in which the marketing manager explains the subordinate about every related area of designing the logo. The marketing manager should understand that in case of conveying and assigning the task into proper form of goal to the subordinate, that goal would be duly owned by the subordinate, as he would find it challenging bet attainable. Specific information relates to designing a logo should include the information regarding the brand for which the logo is to be designed, the message that should be reflected from that logo design task, the exact time-period to complete the logo design task, the evaluation method to judge how much successful is the logo in transmitting its intended message, the degree of challenges that could be faced while completing this logo design task, etc. In this manner, the marketing manager can present such task in the form of challenging goal which meets the criterion of being SMART (specific, measurable, attainable, result-oriented and, time bounded), which can effectively motivate the subordinate to whom the logo design task is assigned. Question 4 Support the statement: “In today’s business environment working in groups is essential, but impossible” with the help of journal articles.   According to Alavi and Keen (1989), in the twenty first century, the most vital factor for businesses is their ability to meet the demands of environment for rapid adjustments to global competition and dynamic markets as well as for complex co-ordination of actions. It has always been observed that business teams have been very effective for addressing the need of flexible, dynamic organization that can efficiently deal with turbulence and complexity (Alavi). Supported by the study of Alavi and Keen (1989), in today’s business environment, teamwork is very essential. Yet, it is very difficult to build up co-ordination and co-operation among the team members. If any of these elements are lacking in any group, then it leads to failure of assigned tasks. In the vast changing business environment, it has become difficult for teams to survive since the new element that has been added in the equation is the utilization of Information Technology (IT) to influence team efforts. Information Technology has made it easier to enhance the performance of teams through interaction of different processes. These processes begin from production processes to final delivery of products. Information Technology has facilitated in performing these processes. Therefore, by utilizing the benefits of Information Technology in today’s business environment, working with teams can produce profound results (Alavi). Supported by the study of Alavi and Keen (1989), if teams are working with the latest technology equipped with them, and then it can assist in two tasks which are; task execution support and coordination support. It means that after equipping better technology with effective teamwork, and then execution of all the relevant tasks can be performed in an exceptional manner. Moreover, co-ordination among group members as well as different departments of the business will increase exponentially. Another research conducted by Tarricone and Luca (1995) stated that today’s business expects from employees far more than generic and technical skills. There is a growing concern of employees not only doing their jobs but also contributing to the success of business. Therefore, in order to make individuals contribute to the positive perpetuation and effectiveness of business through work related and professional skills, the culture of teams in business places additional prominence on the agenda of working effectively (Tarricone). Tarricone and Luca (1995) have stated the importance of individuals’ contribution towards the success of business. If these individuals start working in form of groups/ teams, then the effectiveness and competence will increase exponentially as it is said, “Two heads are better than one”. Despite of that there are number of problems associated while working in teams, the importance of teamwork and social interdependence in businesses can never be denied (Tarricone). The problems that persist while working in teams include conflict of interest, working capability of each individual, compatibility concerns and personal biasness or judgments. Nevertheless, the importance of teamwork surpasses all these issues since its benefits are much greater than the problems associated with it. Therefore, the importance of teamwork in today’s businesses cannot be denied. Cottrill (1997) put forward a study consisting of a detailed explanation related to the performance of teamwork in today’s business environment. Cottrill (1997) stated that in today’s business environment, some teams are highly successful while others are dispersed due to lack of productivity, conflict or frustrations. Cottrill (1997) further stated that research has shown that teamwork require an explicit learning curve, and teams may require both training and time before they form into cohesive and productive units. Utilizing the findings of the study conducted by Rajiv Banker, Roger Schroeder, loy Field and Kingshuk Sinha, Cottrill (1997) concluded that teams that are made up of those members who are eager to co-operate with other group members for a challenging task will survive effectively in a business environment. The author further stated that as the size of the group increases, the effectiveness might decrease (Cottrill). Study of Cottrill put forward an important point, which explains the significance of investing time and training on workers. If each worker is given considerable time and required training, then they will perform well in groups, since they would have been taught the ways of co-coordinating with each other in order to reach the task in a better way. This will lead to improved performance and thus good results. After reviewing all the above studies, it became evident that despite of number of problems associated with teamwork, the existence of teamwork cannot be eradicated from today’s business environment. It is difficult but not impossible to work in teams. If proper training is provided to group members and adequate strategies are implemented in order to execute the teamwork, then the results of working in teams can be very astonishing. Question 5 Change Management In today’s business world, change has become indispensable. It is obligatory to be adapted to changing business conditions yet, managers face number of serious issues concerning with the process of deploying change. The biggest problem is that employees always resist change and it is difficult to make them understand the positive aspects of change. While working as interns in different organization, I have also experienced the influence of change on organization and its employees. Scenario of Occurrence of Change Couple of years ago, I was working in a local telecom company. The company was one of the leading players in its industry and possessed a large market cap. My job was titled as “Customer Service Agent”. Overall, my job was going perfectly all right and I was having great opportunities to learn while working. While I was working for that company, the company experienced a significant change. There are several types of change. Some of them include product launches, expansion and re-alignment of sales staff, organizational re-structuring, alignment of territories, introduction of vales models or new leadership, introduction of new software systems, technology or computer system, realignment of departments, retooling of management systems, downsizing etc. The type of change that our company underwent was “Organizational Restructuring.” In this regard, our company took over an emerging and growing Internet Service Provider company that was having soaring sales. The basic purpose, which caused this acquisition, was the deeper association between internet connectivity systems and telecom industry. Nowadays, every other company that is offering telecom services is also providing high-speed internet so that the customers do not switch to other telecom service for utilizing the facility of internet connection along with telecom services. Our company was lacking in this area and was providing solely the GSM services. In order to keep pace with the intense competition within industry, our company had to introduce internet service providing facilities as well. The type of acquisition, which occurred between our company and the ISP Company, was horizontal acquisition because both the companies belong to the same industry of providing communication services. Critique and Analysis of the Change Process This change largely influenced the employees of the company. It was observed that the HR Managers had not taken appropriate moves to ensure that the process is going smooth among employees. During a change process, it is essential to maintain morale of employees and reduce employee attrition. This important aspect was lacking in our case. Most employees were reluctant to the change and were having the feeling of insecurity resulting from the probability of job loss, pay cuts etc. Therefore, for senior managers, it was very crucial to communicate with old employees and make them aware of the positive aspects of the change and the possible benefits that it is expected to produce. If I would be at the position of HR Managers, post to change occurrence, I would have conducted group interviews of employees to introduce them the change and ask their suggestion and feedback regarding that. Kotter's Eight-Stage Model for Major Change The Kotter's Eight-Stage Model for Major Change is applicable to this scenario. Below is given the complete description of application of this model to the change process. 1. Creating Urgency In order to make any change happen, it is essential that the entire organization work on it. In this regard, a sense of urgency needs to be created. This can ignite the initial motivation to make things moving. For the above-mentioned scenario, urgency can be created by: Examining the opportunities that can be exploited Initiating honest discussions and providing convincing and dynamic reasons to make people thinking and talking Requesting customers for providing their support and also asking outside stakeholders and other industry people to support the discussion The senior managers needed to create urgency, which they did not do. This created nuisance among employees regarding accepting the change. Managers needed to inform employees that this change is indispensible and needs to be implemented anyhow. Instead of it, they just put the change into effect without communicating properly with employees. If I would be at leaders place, I would have clearly and concisely create the sense of urgency through video conferences and meetings. 2. Establishing Coalition to ensure Commitment In the above-mentioned case, managers did not make employees realize that they are part of change. In the case of acquisition of ISP Company, true leaders of the telecom company must have been identified. These leaders were then must have been asked for an emotional commitment with the people of the company. The leaders needed to make each subordinate feel that without their individual efforts, it is not possible to implement this change successfully. Moreover, it was essential to work in teams within the coalition of change. If I would be at leaders place, I would have created coalition through informing employees that they are an integral part of organization and without their assistance, it is not possible to implement change. 3. Developing a strategy and a vision While moving ahead for acquisition, it was very essential to determine a vision as well as a strategy. The values that were central for the change must also be determined. It could be done by creating a short summary of a sentence or two that summarizes what the top management sees the organization in future. After that, a strategy must have been crafted in order to execute that vision. Last but not the least; the vision must be the one, which could be explained in less than five minutes. The senior managers did not construct a vision but they did formulate a strategy. It is quite weird to develop a strategy without having a stated vision. Therefore, there were substantial chances for the strategy to fail since it had no bases of a strong vision. If I would be at leaders place, I would have developed a vision first. After that, I would have formulated those strategies, which reflect that vision. 4. Communicating the strategy and vision The change vision must have been circulated and communicated through the telecom company to make the employees understand that the ISP Company is not a new component of our telecom company. People’s concerns and anxieties related to the change process must also be openly discussed and addressed. Strategies and vision could be communicated through different channels such as training, seminars, grapevine etc. The leaders did not emphasis too much on communicating the vision and just conducted monthly seminars. These seminars did not prove to be very effective because the change was huge but seminars proved to be very diminutive in communicating this change. If I would be at leaders place, I would have circulated the change organization wide through short messages which would be displayed everywhere in the company. 5. Empowering employees to act upon that vision If the employees are not empowered to act upon that vision, they will sense insecurity and lack of belongingness with the organization. Therefore, employees must be allowed to get acquainted with their new tasks and responsibilities. Managers did not consider the viewpoints and feedbacks from their subordinates, which was very disappointing for subordinates. This step of managers was very incorrect. Most of the subordinates were having the feeling of insecurity and unrelatedness with the company. If I would be at leaders place, I would have assigned tasks and responsibilities to each employee so that they feel empowered. 6. Creating short-term accomplishments Initially, it is essential to create and celebrate short-term wins. It will boost the morale and motivation of employees since nothing motivates an individual more than a success. Those people who put in their best of efforts must be rewarded. The leaders did not celebrate the short-term wins because there were not any short-term wins since there were already so many deficiencies in the implementation of the plan. 7. Based upon those short-term accomplishments, handling bigger problems and creating greater change By creating short-term wins, bigger problems can be handled in a better way. After every success, the telecom industry needs to be evaluated about what went good and what still needs to be improved. Future goals must then be set to continue moving towards the trajectory of success. Short-term wins were not celebrated therefore bigger problems could not be handled in a better way. 8. Institutionalizing change in corporate culture Slowly and gradually, the change must then be camouflaged into the corporate culture of the organization. For leaders, it is required to consistently support the change. Moreover, after the change process, the change leaders must be replaced so that their legacy is not forgotten. Senior managers did some significant mistakes at the initial stage. Some of them include not considering the viewpoints of employees, not formulating vision, not communicating the strategy properly, not empowering employees etc. These mistakes proved to have domino effect on the entire plan of implementing change. By considering the above-mentioned factors, change management process can be implemented successfully and effectively in any organization. Employees constitute a large part of every organization; therefore, it is highly important to consider the needs and wants of every employee. If every employee strives to give his best, the overall efficiency of organization will increase exponentially. Works Cited Alavi, Maryam & Keen, Peter G.W. "Business teams in an information age." The Information Society: An International Journal, 6(4) (1989): 179-195. Cottrill, Melville. "Give Your Work Teams Time and Training." Academy of Management Executive, 11(3) (1997): 87-89. Daft, R. The Leadership Experience,5th ed. Chicago: Cengage Learning, 2008. Tarricone, Pina and Luca, Joe. "Employees, teamwork and social interdependence – a formula for successful business?" Team Performance Management, 8(3/4) (1995): 54 - 59. Read More