Leadership Theories in Organisations - Essay Example

Leadership styles Leadership Theories in Organisations Leadership theories describe and explain how leaders emerge, made and behave as they interact with their followers to meet certain organizational or group objectives. It helps people understand why and how leaders act. According to Pride et al (2009), leaders often posses the power to grant rewards and impose punishments. This allows them to influence their followers extensively. A number of theories have been established to shade light on various approaches to leadership. Sheldon (2010) revealed that personal traits, values, principles, goals, skills and attributes determine how one leads. Critical analysis of leadership theories in the construction industry There are various theories that explain how entities are led to achieve company’s objectives. Trait approach theory, skills approach theory, transformational leadership theory, situational approach theory, style approach theory, contingency approach theory, path-goal theory and psychodynamic theory are leadership theories to be analyzed. The area of focus is leadership in the construction industry. Sir Michael Latham, Sir John Egan and Ray O’Rouke (Build 2008) have been identified as leaders in the construction industry. According to Chartered Institute of Building (2008), UK’s construction industry does not have highly influential leaders. Trait leadership approach suggests that personal characteristics dictate success and effectiveness of a leader. According to Daft (2007 p. 38), intelligence, honesty and patience are some of the personal characteristics that must be possessed by all leaders. Creativity, self confidence, higher levels of energy, height, self appearance, knowledge, speech fluency, popularity, sociability, persistence, hard work and desire to excel are some of the key traits that define leaders (West and West 2006 p. 98; McNeal 2010; Griffin P. 473). In addition, simple acts of kindness can make one a strong and reliable leader (Maxwell & Littleton 2001).Trait approach theory presumes that leaders are born and not made. This theory approach does not seem consistent with the construction sector in the UK. This is because the sector lacks highly influential leaders yet it presumes that leaders are born and not made. Does it mean that of all the employees in the construction sector, there is no single natural leader? It is not possible in the whole industry not to have a single person with all or most of the personal attributes that makes one a natural leader. Most leaders and managers in the construction industry were above forty three years of age. If leaders were born, then the industry could have leaders of different ages. Consequently, it can be inferred that personal attributes alone does not make effective leaders in the construction sector. Second leadership approach is skills approach. Chartered Institute of Building (2008) claimed that there is skill shortage in the construction industry and this explains the reason why the industry lacks highly influential leaders. Skills approach theory can be used to explain why certain people are leaders. Leaders are described according to the productive skills they posses. Skills approach theory applies mostly to professional leadership where a person must have acquired certain skills in a given field such as marketing, accounting, engineering, medicine, agriculture and economics among others to be considered as a leader or supervisor in a department. Luckily, leadership skills and competencies are available to everyone who wants to learn, experience, develop, nurture and master them. Northouse (2009 p. 53), asserts that position of leaders in the management hierarchy is dictated by the kind of skills they posses. For example, leaders in the lower hierarchy of management only require to posses human and technical skills to be efficient and effective in their supervisory roles. Leaders in the middle level hierarchy need to posses human, technical and conceptual skills. Finally, leaders in the highest level of management hierarchy must have conceptual and human kills. Leaders can sharpen and make their skills highly effective through training and experience. Skills theory suggests that people who aspire to lead others successfully must be willing to acquire and nurture problem solving skills, technical skills, human skills, conceptualization skills as well as sound judgment skills. The theory presumes that a leader in a given area must possess higher levels of skills. Consequently, skills approach theory is applicable to the construction industry as well. This explains the reason why most leaders and managers were over forty three years implying that skills are acquired over time. In addition, skills can be acquired as illustrated by Sir Michael Latham and Sir John Egan who are not construction based professionals (not engineers). Sir Michael is trained in the field of finance while Sir John is an industrialist cum politician. Ray O’Rouke is the only identified leader who happened to have been trained for the construction sector. Transformational leadership is the third leadership approach that explains why construction industry lacks highly influential leaders. Transformational leadership emphasizes on the ability of leaders to set a vision, state the missions to achieve that vision and inspire others to think and act in that new way. They challenge status quo, present new ideas and challenge followers to think. Transformational leaders have the ability to generate and implement new ideas and transmit them with passion to his or her followers. A transformational leader possesses high level of creativity and conceptualization, transformational mindset and self-mastery, individual courage as well as good communication skills. In addition, they stay flexible, adaptable to new situations and constantly try to improve people around them. Such leaders achieve beyond expectations and induce followers to follow collective interests. They develop people by delegating duties, coaching and giving constructive feedback. They do not criticize errors, mistakes, new ideas or failures publicly. Extensive knowledge enable transformational leaders create and maintain environment where creativity and innovation thrives. Transformational leaders use individualized consideration, inspirational motivation, idealized influence or intellectual stimulation to move the masses. Mahatma Gadhi, Martin Luther King Jr, Winston Churchill and Franklin Roosevelt are examples of transformational leaders in their time and are still remembered to date for their contributions to humanity. Mahatma Gandhi and Martin Luther King Jr were visionaries whose leadership was grounded on national and ethical ideologies. They possessed passion, high levels of individual courage and transmitted their ideas in brilliant rhetoric. They were merchants of hope who inspired their followers to move beyond their personal and egoistic motives. Buckley (2006) considers Tony Blair as a transformational leader. Tony Blair has a global vision of how the world needs to be governed to be at peace with itself by eradicating poverty, disease and environmental challenges. He became extremely successful in the labour party politics and was able to bring peace to Northern Ireland. He is a very interesting political figure and has the passion, ideas and ability to inspire others behind his vision. Transformational leadership approach is more appropriate when an organization need to change rapidly to be able to adapt to changing turbulent business environment (Griffin, 2007). Greiner & Cummings (2009) assert that leaders of narrow minds and who are myopic in their thinking do not qualify to be transformational leaders. Construction industry in the UK lack transformational leaders. Sir John Egan (Build 2008) in his report admits that construction industry require radical transformation. It has been static for so long due to lack of effective transformational leaders who can cause a paradigm shift. Fourth, leadership approach is the situational leadership approach. Paul Hersey and Kenneth Blanchard formulated situational approach theory. They claim that existing task, skills and degree of motivation of a team dictates effective leadership. Situational leaders must develop four different influence and competency skills. The leaders should be able to tell or direct their followers, sell their ideas, delegate duties and participate in team activities (Dym and Hutson 2005 p. 35). Situational leaders must be flexible enough to adapt their leadership approaches and styles to fit variety of situations. In situational leadership, relationship between those who lead and those who follow evolve over time and is different depending on the context. Adair (2006 p. 33) claimed that leaders emerge depending on the situation at hand. According to situational approach, effective leaders in one situation may fail miserably to be leaders in a different situation. This is because leaders in a particular situation or field need to posses the superior skills and competence in that field as compared to the others. For example, if natives of the island attack survivors of ship wreckage in a tropical island, a soldier among the survivors may take charge to protect the other survivors because he or she has the ability to fight back and save the situation. Construction industry in the UK has failed to produce influential leaders. Construction industry could be more stable and mature as compared to other sectors thus making it difficult for situational leaders to emerge. The fifth leadership approach is style approach. Style approach emphasize on the stable behavior of the leaders. McAuliffe (2006) and Sagolla (2009 p. 22) point out that the style that leaders apply often depends on the purpose of the group and situation under which the group performs. A leader can choose to be directive, active or structural in his or her leadership approach. Scott (2003) revealed that from late 1940’s the focus shifted to leadership behavior. It explains that style approach involves consolidation of skills, traits and behaviors used by leaders as they interact with their followers. Different leaders apply different styles as they lead their followers. For example, they are leaders who show concern about subordinates and attract trust and responsiveness from followers. Consequently, followers are motivated and feel satisfied on their tasks. However, such leaders exhibit lower levels of performance (Rubenstein 2008; Jacobs et al 2008). To be an effective leader, one must choose a style that is appropriate at that point in time (Goleman eta al 2004, p. 85). Construction industry in the UK has not produced a stylish leader. Style approach is one of the most difficult approaches to use because it requires a highly talented, skilled and stable person. Sir Michael Latham, Sir John Egan and Ray O’Rouke did not exhibit given patterns in there leadership. Style approach is an ideal leadership style as it is difficult to achieve because most people change in behavior and attitudes as they learn and gain more experiences with time. Contingency theory is the sixth leadership approach theory. According to contingency theory, the quality of fit between the context and leadership approach prescribes effective leadership. Fred Fielder, the originator of the contingency theory suggest that leadership relations, task structure and power position are three factors that arbitrate the fit between the context and leadership. Contingency theory shows that corporate organizations are led depending on the situation and leaders are matched to the task. The optimal solution to any organizational problem depends on internal and external situation. Therefore, situation dictates leadership and decision making in any given organization. Careful management is necessary to balance and satisfy needs as well as adapt to the surrounding conditions. This could be done by aligning the organization and making good fits when conditions demand. Rowe and Guerrero (2010 p. 166) reveal that effective leadership demands best fit among the leaders, followers and the situation. Construction industry does not support contingency leaders. This is because the industry undertakes long term projects that demand long range plans to implement it appropriately. Political and retail business may provide space for contingency leaders because they surrounded by highly volatile environments. The seventh leadership approach theory is the path-goal theory. Tosi et al (2000 p. 471) asserted that Path-Goal theory connects the behavior of the leaders to performance. The theory borrows ideas from the expectancy theory that explain that employees are motivated by the rewards they receive from working harder and better. According to path-goal theory, leaders occur as a result of doing things the right way in order to get the expected results. Path- Goal oriented leaders identify goals, seek support, train workers and provide adequate resources for its followers. Such leaders understand that results are only achieved by performing certain appropriate tasks. Proponents of path-goal theory firmly believe that leaders must ensure that subordinates clearly understand tasks that must be performed to achieve predetermined goals and work hard to remove obstacle that may hamper progress. The theory points out those leaders may choose to be supportive, participative or achievement oriented to be successful in their leadership. They also reward all followers for their contributions in the effort to achieve set goals. According to Build (2008), Sir Michael Latham, Sir John Egan and Ray O’Rouke seem to apply path-goal theory in their leadership approaches. All the three leaders were pushing for the results in the companies they worked for. This theory is applicable to construction industry because after the work is done, results must be observed. Results are normally physical and financial in nature. Eight and final approach to leadership is psychodynamic approach. Psychodynamic approach theory suggests that leadership is about behavior and leaders treat followers depending on their experiences from childhood. Winkler (2009 p. 23) concurs that parents function as first leaders and if they provide the necessary support for the growing child, the child grow helping others too. The attitudes, potential, behaviors, actions and desires of people depend on the treatment they receive from people they perceive as their leaders, peers or heroes. The theory indicates that the experiences that a person undergoes at early age of his or her life forms the foundation for the future leadership or follower behaviour (Beerel 2009). Psychodynamic approach to leadership acknowledge that leadership is about creating and fortifying relationships, building commitment as well as creating group identity and meaning. Psychodynamic approach to leadership suggests that a leader can be good or bad depending on the childhood experience. Good or constructive leaders are people who were fortunate to have parents or guardians who knew how to provide and help them deal with frustrations of life. Their caretakers challenged them and provide supportive environment. As a result, they developed feelings of trust and loci of control over their lives. Such people live balance life, have positive self esteem, can inspect themselves and look at life positively. In life, they do not seek power alone, but seek to empower others too. Bad leaders and people are those who were grossly disadvantaged in their childhood. Their caretakers were dysfunctional. Consequently, they were under stimulated or over stimulated. Conclusion There is no particular leadership style that can be applied single handedly. Every leader that aspires to be effective in leadership must understand his or her followers as well as circumstances that surround them to apply appropriate leadership approach. Furthermore, he or she must portray and practice traits such as courage, self-confidence, passion, love, trust and understanding, emotional intelligence, honesty, transparency and flexibility to be truly a true leader. The above traits are essential for all leadership styles. Good communication skills, strategic vision, integrity and understanding of the business are most important traits for a leader to be effective in construction industry. References Adair, J 2006, How to Grow Leaders: The Seven Key Principles of Effective Development, Kogan Page, London. Beerel, A 2009, Leadership and Change Management, Sage Publications Ltd, London. Buckley, S 2006, The Prime Minister and Cabinet, Edinburgh University Press, Edinburgh. Build 2008, CIOB exposes lack of leadership in construction industry, viewed 6 November 2010, http://www.build.co.uk/construction_news.asp?newsid=83041 Dym, B & Hutson, H 2005, Leadership in non-profit organizations, Sage, London. Gill, R 2006, Theory and practice of leadership, Sage, London. Goleman, D, Boyatzis, ER & McKee, A 2004, Primal leadership: learning to lead with emotional intelligence, Harvard Business Press, Harvard. Greiner, EL & Cummings, GT 2009, Dynamic Strategy-Making: A Real-Time Approach for the 21st Century Leader, John Wiley and Sons, New York. Griffin, W R 2007, Fundamentals of Management, 5th edn, Cengage Learning, New York. Griffin, WR 2006, Management, 9th edn, Cengage Learning, New York. Jacobs, EE, Masson, LR, Masson, RL & Harvill, LR 2008, Group Counseling: Strategies and Skills, 6th edn, Cengage Learning, New York. Johan, P, Drenth, D, Thierry, H & De Wolf, JC 2001, A Handbook Of Work And: Organizational Psychology, 2nd edn, East Sussex Psychology Press, London. Maxwell, CJ & Littleton, RM 2001, Leading in your youth group, Thomas Nelson Inc, New York McAuliffe, MR 2006, Never Sharpen a Boomerang, Trafford Publishing, Canada. McNeal, R 2010, Practicing Greatness: 7 Disciplines of Extraordinary Spiritual Leaders, John Wiley and Sons, New York Northouse, GP, & Northouse, P 2009, Leadership: Theory and Practice, 5th edn, Sage, London. Pride, WM, Hughes, JR & Kapoor, RJ 2009, Business, 10th edn, Cengage Learning, New York. Richard L. Daft, LR 2007, The leadership experience, 4th edn, Cengage Learning, New York. Rowe, GW & Guerrero, L 2010, Cases in Leadership, 2nd edn, Sage, London. Rubenstein, H 2008, Leadership for lawyers, 2nd edn, American Bar Association, USA. Sagolla, D 2009, 140 Characters: A Style Guide for the Short Form, John Wiley and Sons, New York. Scott, T 2003, Healthcare performance and organizational culture, Radcliffe Publishing, Oxon. Sheldon, F 2010, The Fundamentals of Leadership: Essential Tools of the Trade, Wheatmark, Inc., London. Tosi, LH, Mero, PN, & Rizzo, RJ 2000, Managing organizational behavior, 4th edn, Wiley-Blackwell, London. West, M & West, L 2006, Leadership Centuriantrust Winkler, I 2009, Contemporary Leadership Theories: Enhancing the Understanding of the Complexity, Subjectivity and Dynamic of Leadership, Springer, Germany. Read More