What is Effective Leadership within an Organisational Context - Essay Example

? What is effective leadership within an organisational context Introduction In order to evaluate the role of leaders within organizations it is necessary to review the conditions in the internal and the external organizational environment. The personal characteristics of leaders can also influence their responses to various organizational challenges. In this context, the elements of effective leadership are not standardized. For this reason, various theories have been developed in the literature for explaining the characteristics of an effective leader. It seems that these characteristics are not standardized. Indeed, each leader seems to have different criteria for prioritizing organizational needs and for handling organizational crises. For this reason, the description of effective leadership may have different forms, focusing on the leader’s personal characteristics (traits), the role of leadership in transforming the organizational environment and so on. The review of the theories developed in the particular field led to the following assumption: effective leadership can exist in modern organizations but not in its ideal form. This means that even leaders who are characterized as quite successful may fail in responding to all needs of their organization. This finding can be characterized as logical since leaders, like all people, can also have weaknesses and preferences. However, there is a characteristic that differentiates successful leaders from others, non-charismatic leaders; successful leaders are able to use their weaknesses as means for promoting their ideas. For example, the lack of flexibility of Margaret Thatcher in regard to her political decisions has been also considered as a power for supporting her ideas. In other words, in charismatic leaders, weaknesses are transformed into exceptional characteristics, contributing in the success of these leaders within their environment. 2. Effective leadership – description and analysis 2.1 Nature of leadership The last decades, the development of leadership has been rapid. The reason is that the specific concept has been highly related to the organizational development. In fact, it has been proved that leaders have a key role in the success of organizations in the international market. A wide range of leadership definitions has appeared, aiming to explain the nature of the concept and its role in the organizational performance. In accordance with a well-known description of leadership, this of Bass (1990), the most appropriate description of leadership would refer to leadership as ‘a group of processes’ (Bass 1990, in Northouse 2010, p.2). In the context of the above description, the leader is believed to be the center of organizational processes, and that his views reflect the views of his environment, meaning the employees. However, the above description fails in explaining the role of leader in taking initiatives, a role which is quite important for modern organizations, as analyzed further in the sections that follow. From another point of view, Northouse (2010) notes that leadership can be considered as a concept reflecting ‘a combination of special traits’ (Northouse 2010, p.2), meaning that each leader has specific characteristics, which are those that make the particular leader exceptional within his environment, both the internal and the external. The trait-theory on leadership, as described above, is quite popular, focusing on the personality of leader and not so much on his role within the organization. It is expected that the response of each leader to his environment will be different, in accordance with his personal characteristics, meaning his perceptions, his background and his skills. 2.2 Types of leadership in modern organization As noted above, the views of theorists in regard to leadership and its role are differentiated. Most theorists consider leadership as related more to the personal characteristics of the leader, a view promoted in the traits theory of leadership. However, there are also theorists who believe that leadership is affected by the organizational environment at such level that it can be considered as a concept reflecting the beliefs and the values of all employees within a particular organization. The most known theory in leadership is the trait theory. The specific theory is based on the view that a leader has specific personal characteristics that make him to be differentiated from other leaders. In the context of the trait theory, these characteristics are often described as ‘physical or psychological qualities’ (Lussier and Achua 2009, p.16). The trait theory of leadership can be used in order to foresee the potentials of certain individuals to become successful leaders or not. From another point of view, the leadership style of an individual can be identified and explained using the ‘Myers-Briggs Type Indicator (MBTI)’ (Daft and Lane 2007, p.118). In accordance with the above theory, the leadership capabilities of an individual can be measured by using the MBTI indicator; the above indicator reflects the ability of individual in ‘resolving problems and taking decisions’ (Daft and Lane 2007, p.118). At the next level, the leadership style of individuals can be categorized by referring to the power of individuals to promote their views, their capability in communicating with their environment or their ability to promote innovation. Two different major trends have been developed in regard to the above issues: the X theory of leadership is based on the idea that leadership reflects the authority of the leader; the above theory promotes the authoritarian style of leadership (Ricketts and Ricketts 2010, p.24). The opposite theory, the Y theory of leadership, promotes the democratic leadership style, being based on the idea that leadership reflects the cooperation between the leader and employees at various levels in the organizational hierarchy (Ricketts and Ricketts 2010, p.24). The above theory does not state the criteria on which this cooperation is developed, leading to the assumption that the level at which a leader can be influenced by his environment can be depended on his psychology (Judge et al. 2002). 2.3 Challenges of leadership A successful leader has to face a wide range of challenges. When referring to the organizational context, a leader needs to be able to manage effectively all issues developed in the internal and the external environment. In such context, a leader has to face the following problems: a) the resistance of employees to his ideas and plans; this resistance can be extremely strong, leading, in certain cases, even to the recall of leader’s proposals (Collinson and Collinson 2005), b) the lack of resources for the realization of certain projects; usually, the plans suggested by leaders are aligned with the organizational capabilities, meaning that the leader has to examine in advance whether his plans are feasible (Riggio and Reichard 2008). However, under certain terms, a project suggested by the leader may require more resources than those initially estimated, meaning the need for advanced skills in terms of employees, the need for advanced technology or for additional funds (Johnson 2011). In the above cases, the leader has to be able to identify the resources required for the completion of his plan, even if the time available for this effort is limited. It is at this point, that the effectiveness of a leader can be verified, c) the communication and cooperation within the organization can be low (Bass and Bass 2008). The transformation of the internal organizational environment can take a long period of time. In the meantime, the promotion of important organizational plans may be delayed, a problem that needs to be addressed by the organization’s leader (Bass and Bass 2008); d) the position of the organization within its industry may be not secured (Daft and Lane 2007). This problem can be related to the organization’s performance in the past or the increase of competition in the particular industry. The leader needs to identify those plans that can help the position of the organization in the local or the international market to be improved. Usually, this target cannot be easily achieved. Leaders who can help their organization to achieve a rapid growth in the global market can be characterized as successful (Schein 2010); the example of Richard Branson, as analyzed in the section 2.4.2 below, reflects the ability of effective leaders in supporting the rapid development of their organization. 2.4 Elements of effective leadership In order to understand the elements of effective leadership it would be necessary to refer to the theory developed in the specific field. At the same time, the reference to examples of effective leaders, as developed in practice, would help to realize the actual form and role of effective leadership. As revealed through the issues developed below, effective leadership is a quite demanding concept. It can incorporate various elements; it can be also differentiated within organizations with different characteristics (such as culture, market position). The examples of effective leaders, such as Richard Branson and Margaret Thatcher, help to understand the most common forms of effective leadership but also the challenges that this type of leadership has to face within the modern market. 2.4.1 Effective leadership in theory In accordance with the Fiedler’s Contingency Theory, ‘leadership effectiveness is a function of the match between leadership personality and its situational characteristics’ (Keller 2004, p.4). In accordance with the above theory, an effective leader is able to understand the conditions in the organizational environment and align the organization’s needs and resources with his ideas and plans. The above theory is based on the view that the effective leader cannot act independently, a view, which is not fully verified in practice. For example, in the example used below, in section 2.4.2, Richard Branson is an effective leader even if he does not been particularly influenced by the internal or the external organizational environment but he rather follows his ideas and his perceptions in regard to market risks and trends. In the context of the social life also, the example of the leadership style of Margaret Thatcher, proves that an effective leadership is not necessarily depended on his environment, but he can also be based only on his personal perceptions and beliefs, without this fact to negatively influence his leadership capabilities. From another point of view, the effective leadership needs to be aligned with four different requirements, meaning that a leader can be characterized as effective only if four different requirements are met. The above theory is known as the ‘Four Frame approach’ (Bolman and Deal 1997); in the context of the above theory, there are four different frames for characterizing a leader as effective: ‘the Structural frame, the Human Resources frame, the Political frame and the Symbolic frame’ (Bolman and Deal 1997, in Keller 2011, p.5). The above frames reflect four different leadership qualities/ characteristics: ‘Analyst, Catalyst, Advocate and poet’ (Bolman and Deal 1997, in Keller 2011, p.5). The above theory would be possibly used for describing effective leadership but it would be limited at the following point: it may be quite difficult for a leader to have all these qualities, even if he is an effective leader. From a different point of view, it has been stated that the effective leader is differentiated from other, non-charismatic leaders, at the following point: the effective leader is distinguished because of ‘a combination of cognitive and other intelligences’ (Girczyk 2008, p.67) that allow him to respond effectively to a variety of problems. A widely known theory in regard to the specific issue, is the trait theory of leadership. The specific theory, which has been analyzed above, promotes the idea that effective leadership is based on the existence of certain ‘distinctive characteristics of the leader compared to other leaders’ (Lussier and Achua 2009, p.16). On the other hand, the transformational leadership theory, also described above, is based on the view that effective leader is able to respond effectively ‘to all situations and cultures’ (Bass 1985, in Bryman 2011, p.287). The examples used for explaining the practical aspects of effective leadership prove that effective leadership can have different forms, even if certain of the above requirements are met. 2.4.2 Characteristics of a successful leader in practice Richard Branson of Virgin is the most indicative example of successful leadership. Branson has promoted leadership style, which has not been commonly used in the past; ‘informality and lack of hierarchy’ (Conger and Kanungo 1998). Being dressed, most of the time, in ‘sweaters and slacks’ (Conger and Kanungo 1998, p.192), Branson has proved that the effectiveness of a leader is not depended on his image, as influenced by his appearance. Instead, he has made clear that a successful leader needs to be able to take initiatives, even if the risk involved is high, believing in his ability to understand the market trends and to foresee the market responses to his plans (Hargrove 2000). Many of the ideas of Branson have been unique; for example, his decision to promote the rapid development of Virgin in different industries could be characterized as risky, taking into consideration the strong turbulences in economies worldwide (Hargrove 2000). However, it has been proved that his plans were well designed, so that the risk involved is controlled. Branson has been characterized as a charismatic leader (Manz and Sims 2001). His ability to support the rapid growth of Virgin in the global market, avoiding major risks, has been exceptional (Manz and Sims 2001). In certain cases, his proposals have been considered as of high risk, but he always had the support of his employees, a major advantage in regard to the realization of his projects (Manz and Sims 2001). The example of Richard Branson shows that effective leadership is closely related to the ability of the leader to promote cooperation and communication within the organization and to support innovation (Hargrove 2000). Margaret Thatcher is an excellent example of a decisive leader. Her ability to proceed to the realization of her ideas has been unique. In fact, in many cases her decisions have faced the opposition even of the members of her party, but this fact has not discouraged her. On the other hand, Margaret Thatcher showed that the leader should accept the responsibility of his role. Her ‘heroism after the Brighton bomb’ (Patching 2007, p.41) proved that she has been a leader who cares for people, even if her political decisions have showed a different profile. Indeed, the key aim of Thatcher has been ‘to release the energies of individuals’ (Evans 2004, p.46) and not to promote the development of the idea of community (Evans 2004), a strategy often used by politicians for improving their relationship with the public. The political decisions of Thatcher in regard to a wide range of issues proved that Thatcher aimed to promote the increase of power of Britain, as a state, and not to improve the conditions of living of citizens, thinking that a powerful state would secure the safety and the well-being of its citizens and not vice-versa (Evans 2004). Margaret Thatcher managed to keep the control of political decisions in Britain for quite a long period, from 1979 up to 1990 (Hargrove and Owens 2003). The above period has been characterized as ‘the Thatcher era’ (Riddell 1991, in Hargrove and Owens 2003, p.98) or the ‘Thatcher Phenomenon’ (Young and Sloman 1986, in Hargrove and Owens 2003, p.98). Margaret Thatcher showed that the decisions of a powerful leader can be influenced only by his personal perceptions, i.e. his character (Hargrove and Owens 2003, p.98). The most important characteristic of Thatcher as a leader is the following one: she has been able to support her views up to the end, meaning that she has been trying to realize her ideas even if, quite often, these ideas were not accepted by other parties. Indeed, the opposition developed against the political decisions of Thatcher has been, in certain cases, quite strong. However, most times she managed to proceed to her plans even with having the unions, the other parties and her own party against her (Patching 2007). Although the example of Thatcher refers to leadership within the society and not within organizations, it can be used for explaining the potential power of leaders to support their will and to promote important changes within their environment. 3. Conclusion The role of leaders in modern organizations can be quite demanding. Most commonly, leaders have to face a series of challenges in both the internal and the external organizational environment. Moreover, the willingness of people to accept and support the decisions of leaders is not standardized, a phenomenon which is also common in the organizational context. In accordance with the theories developed in the particular field, effective leadership is not standardized. It can be influenced by many different factors and reflected in different ways. For example, for a particular organizational context, an effective leader may be the one who can supports his ideas no matter the oppositions of his environment, as in the case of Margaret Thatcher, a popular politician. In another organizational context, a leader may be considered as effective if he is able to promote innovation supporting the rapid growth of his organization, as in the case of Richard Branson. The responses of people to the decisions of leaders can be also considered as a criterion for evaluating the effectiveness of a leader. Using such criterion, Thatcher may not be characterized as an effective leader, since her decisions were likely to be opposed, in most cases, by people in Britain. On the other hand, Richard Branson has been always supported by his employees, as reflected at the level of employee participation in the realization of leadership initiatives in Virgin. Moreover, if effective leadership is evaluated using the ability of a leader to transform his environment, then both the leaders mentioned above, Richard Branson and Margaret Thatcher, would be characterized as successful. In the context of modern organizations, the success of a leader is usually reflected in the organizational performance. 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