Leadership in a Changing Environment - Essay Example

Leadership in a Changing Environment - The Sandwich Factory - Number and Number Submission Number of Words: 2,650 Table of Contents I. Introduction .................................................................... 3 II. Ways in which Kirsty’s Leadership has been reflected in the Modern Leadership Theory and Approaches ........................ 3 a. Evidences behind the Shift in the Use of Transactional to Transformational Leadership Style ... 3 a.1 Consequences of Using Pure Top-Down Management Approach ................................. 4 b. Advantages and Disadvantages of Using Path-Goal Theory, Leader-Member Exchange Theory (LMX), Transformational and Transactional Leadership Style .. 5 c. The Strength and Weaknesses of Kirsty’s Transformational Leadership Approach ........................ 8 c.1 Strength of Kirsty’s Path-Goal Theory, Leader-Member Exchange Theory (LMX), and Transformational Leadership Approach ........... 8 c.2 Weaknesses of Kirsty’s Path-Goal Theory, Leader-Member Exchange Theory (LMX), and Transformational Leadership Approach ........... 10 III. Discussion ................................................................................ 11 IV. Conclusion ................................................................................ 12 References .......................................................................................... 14 Introduction Leadership is defined as “the process whereby an individual influences a group of individuals in order to achieve a common goal” (Northhouse, 2010, p. 3). In this report, ways in which Kirsty’s leadership has been reflected in the modern leadership theory and approaches will be tackled in details. With regards to the success of the company, the strength and weaknesses of Kirsty’s leadership will be identified. Eventually, recommended ways on how Kirsty could improve the use of the available leadership style will be tackled and explained in details. Ways in which Kirsty’s Leadership has been reflected in the Modern Leadership Theory and Approaches There are many ways in which Kirsty’s leadership approach has been reflected in the modern leadership theory. Based on modern understanding of a good leadership style, leaders are expected to be able to inspire another person to increase their drive in achieving the organizational goals (Northhouse, 2010, pp. 3 – 4). Aside from having confidence in managing a group of employees, modern leaders are expected to have the desire to lead, be honest, and have sufficient knowledge in managing the business (ibid). Evidences behind the Shift in the Use of Transactional to Transformational Leadership Style Clear evidence in the shift from a traditional leadership approach to a modern leadership approach is her decision to move from the use of transactional leadership style to transformational. In the past, Kirsty as a manager was a control freak. In line with this, most of the managers who adopt the use of old transactional leadership style approach ends up using authoritative power when handling and managing the people. Because of the increase in tight competition within the domestic and global markets, the need to encourage and inspire employees to become self-reliant becomes more in demand. Instead of managing the company using top-down approach, the idea of promoting interaction between the leaders and subordinates has gained importance within the modern HR theories. Consequences of Using Pure Top-Down Management Approach In a top-down management technique, decision-making power with regards to the allocation of available resources, planning and controlling how to spend the money is highly centralized and concentrated with the business leaders. There is a saying that two-heads is always better than one. Since decision-making process is solely dependent with the managers and business owners, the problem with the use of pure top-down management approach is that the business leaders and owners are not able to consider the personal opinion and suggestions coming from the bottom-line employees. Therefore, there is a bigger possibility that the top management will end up making a wrong business decision. Another serious business consequence of using pure top-down management approach is that orders should always come from the business leaders. Given that Kirsty is busy handling some more serious business decision-making, the production of the Sandwich Factory may suffer causing serious operational delays caused by unnecessary operational down-time. In the long-run, the use of pure top-down management approach could lead to lesser business profitability and efficiency. Although there is a shift between the applications of transactional leadership style versus the use of transformational leadership style, it is undeniable that these two types of leadership approach have its own advantages and disadvantages. The only thing that is more apparent is that the use of transformational leadership style is more appropriate when it comes to increasing the competitive advantages of modern companies today. Advantages and Disadvantages of Using Path-Goal Theory, Leader-Member Exchange Theory (LMX), Transformational and Transactional Leadership Style Transformational leadership style can be classified as a directive leadership style in the sense that transformational leaders practice a top-down management. Contrary to transformational leadership style, transactional approach is based on reinforcement and exchanges (Aarons, 2006). Since transactional leadership style is highly preferred by the authoritarian leader(s) that regularly checks and monitors over the performance of each employee, the said type of leadership is more effective when implementing a continuously changing organizational change. Since men are more inclined to think rationally as compared to women, male leaders tend to use the transactional leadership strategy (Eagly & Johnson, 1990). Unlike the use of transactional leadership style, transformational leaders tend to go beyond what is happening around his environment because of their ability to implement new ideas all the time (Johansson, 2004). Often times, transformational leaders are more flexible with the implementation of organizational changes that may occur within the business organization. Likewise, transformational leaders could easily adapt with the implementation of a new strategic plan to improve the business situation. Once a group of employee is guided by a transformational leader, there is a strong possibility that the members of the team would instinctively adopt with the organizational change (Burke, 2002, p. 243). Transactional leadership style is more effective when applied for a continuous organizational change process (Burke, 2002, pp. 201 – 203). Since the case of the Sandwich Factory requires a series of discontinued organizational change, the use of transactional leadership style is not a good choice. Given that the path-goal theory of leadership explained that competitive leaders should be able to encourage and support a group of employees in terms of achieving the new organizational goal, the application of transformational leadership style is more beneficial in the case of the Sandwich Factory since this type of leadership style is more effective in managing a discontinued change process (Burke, 2002, pp. 201 – 203). Specifically the Leader-Member Exchange Theory (LMX) explains the importance of developing a good working relationship between the business leaders and employees. In relation to the use of transformational leadership style, the use of charismatic leadership approach is effective in terms of making effective implementation of organizational change. This is possible since charismatic leaders are able to communicate, inspire and motivate employees to participate in the process of achieving the new organizational goals (Griffin, 2008, p. 340). It also satisfies employees’ demand for respect and freedom of choice (Posakoff & Schriesheim, 1985). Because of the two-way relationship between the business leaders and the rest of the bottom-line employees, the business organization could increase the work and production efficiency of the company. Necessary in achieving the new business goal of the Sandwich Factory, collaborative leaders do not only have the initiative to do a job but is also competent and supportive in terms of guiding the development and implementation of the company’s organizational culture and structure. This type of leaders also works well with their colleagues by creating, supporting, and maintaining a work environment wherein employees can learn and develop their competency to improve their knowledge. As a result of tight domestic competition in the catering industry, the need for continuous organizational change becomes necessary to empower the Sandwich Factory to compete in London market. In response to globalization, a strong collaborative leadership becomes an essential part of doing business not only in terms of enabling the managers to successfully implement a long list of organizational changes but also in terms of solving organizational problems and decision-making. As a leader of the company, Kirsty played the leaders role as a protector, motivator, and a visionary. In line with this, Kirsty explained her vision and her desire to share the same vision to her staff in order to reach a single organizational goal. She also admitted the need to trust her staff in committing themselves towards making the new vision a reality. With regards to Kirsty’s perception on how a modern leader should be, Griffin (2008) explained that a transformational leader is someone who can trust employees’ ability to meet the organizational goal and develop a clear vision (p. 340). The Strength and Weaknesses of Kirsty’s Transformational Leadership Approach Strength of Kirsty’s Path-Goal Theory, Leader-Member Exchange Theory (LMX), and Transformational Leadership Approach With the use of the path-goal theory, Kirsty is capable of becoming a competitive leader. This is possible since the application of path-goal theory enables her to effectively encourage and support her employees in terms of achieving the new business goal. In other words, the strength of path-goal theory is that it provides Kirsty a situational framework which helps her understand how to delegate, support, coach, and direct employees’ behaviour which could affect the business productivity and work satisfaction of employees (Northhouse, 2004, p. 144). The use of the LMX makes Kirsty able to understand the importance of maintaining good relationship with her employees. For Kirsty to satisfy the use of path-goal theory and LMX, she should adopt the use of transformational leadership style. One of the strength of LMX is that this type of descriptive theory allows Kirsty to recognize the existence of in- and out-groups within the business organization. Similar to transformational leadership style, the use of LMX promotes the importance of communication between the leaders and employers. Transformational leadership style allows Kirsty to increase her ability to develop a strong and more effective working relationship with her employees. In general, transformational leaders are the ones that do not practice positional authority. Therefore, it is easier for transformational managers to win the respect and support coming from all members of the team. Considering that a transformational leader as a manager is flexible when it comes to dealing with organizational changes, Kirsty’s use of the path-goal theory will have a better ability to deal with possible resistance-to-change as a result of implementing organizational changes necessary to make her vision a reality. Because of the personal characteristics of a transformational leader, employees who are being handled by transformational business leaders could easily adapt and more willingly participate in the implementation of a new business strategic plan. Transformational leaders are also known for their ability to communicate well with the rest of the employees. As a result of removing the top-down management process, the fact that Kirsty is more willing to establish a two-way communication line with her employees could minimize the risk of operational errors which could result out of miscommunication. In relation to LMX, Kirsty will have the opportunity to hear out the personal opinions, suggestions, and other added inputs which could be beneficial for the business growth of the Sandwich Factory since employees are free to communicate their thoughts within the horizontal and vertical line. Transformational leaders are known for their substantial knowledge in managing the business right. Because of the ability of transformational leaders to share or present their business knowledge to employees, transformational leaders are able to easily win the trust and respect of their employees. Without the use of authoritative or positional force, the ability of transformational leaders to win the trust and respect of employees is one reason why transformational leaders are capable of encouraging employees to work together as a team. Given that transformational leaders are focused in inspiring employees to become leaders in their own ways, employees being handled by transformational leaders who use path-goal theory tend to become more self-efficient. For this reason, employees are capable of working on their own without the need of too much guidance and monitoring. Therefore, Kirsty will have more time managing the business by creating more market contacts, developing new marketing and production strategy, and properly handing the company’s finances which are all necessary for the growth of the business. Weaknesses of Kirsty’s Path-Goal Theory, Leader-Member Exchange Theory (LMX), Transformational Leadership Approach The weakness of Path-Goal theory is that this theory relies too much on the use of expectancy theory. As a common knowledge, expectancy theory explains workers’ motivation in terms of cognitive process but not emotional aspects that could affect the relationship between Kirsty and her employees. Therefore, the use of this theory is not effective in terms of making Kirsty able to manage employees’ work-related stress or anxiety which could negatively affect their overall work performances. The problem with the use of LMX theory is that excessive use of this theory could make Kirsty become unfair to other employees by not giving them equal attention as those who belongs to the majority group. There are no empirical studies that could prove the effectiveness of using LMX theory. Since LMX theory is not fully developed, the extent of using LMX theory in analyzing employees’ personality and interpersonal skills remains questionable. Despite the long list of advantages with regards to the use of transformational leadership style, the problem with using too much transformational leadership style is that leniency in managing people could result to uncontrolled employees attitude and behaviour within the workplace. Therefore, excessive use of transformational leadership style is not always applicable in all business situations. In any given time, there will always be situations wherein a strict authority is required when managing a group of employees. Discussion There are many ways on how Kirsty can effectively improve her leadership skills. Since each type of leadership approach has its own limited strength and weaknesses, Kirsty should be able to choose the best and appropriate leadership style by combining the existing leadership style based on what could possibly work for a given situation. Depending on the situation, either the application of a transformational leadership style, transactional leadership style or both can work effectively when managing employees at the Sandwich Factory. Basically, combining the use of transformational and transactional leadership styles could contribute to the ability of Kirsty in terms of increasing employees’ morale. With the use of either one of these two leadership styles, it is possible for Kirsty to easily create a peaceful working environment. For example: The use of transformational leadership style could increase employees’ morale and satisfaction at work by allowing employees to participate in the business-decision making, increase sense of self-sufficiency at work, feeling respected and important for the company, and ability to communicate with the business leaders and the rest of the employees. Given that employees at the Sandwich Factory have high morale and work satisfaction, employees will end up becoming more loyal and active at work. Transformational leadership style is not applicable to all business situations. Given there is immediate order coming from the top management, Kirsty should make use of transactional leadership style when delegating task to employees. The use of this particular leadership approach will increase Kirsty’s ability to immediately get the work done within the shortest available time. As a result, Kirsty will be able to solve problems that need to be addressed within a short period of time. Conclusion The use of path-goal theory and LMX could somehow empower Kirsty in terms of effectively managing her employees. Because of the need to increase work and production efficiency, modern managers such as in the case of Kirsty decided to shift their focus from the use of tradition top-down management approach towards the need to promote team building, self-efficiency, and self-management. In relation to the major changes in the use of leadership style, the use of transactional leadership approach has become less prominent as compared the use of transformational leadership style. Each type of leadership style has its own advantages and disadvantages. Between the transformational and transactional leadership style, the use of transformational style is more applicable in motivating employees to become self-efficient whereas the use of transactional approach is necessary when there is a need for the manager to delegate specific tasks to each employee. Given that a type of leadership approach that works for a manager may not work the same for others, we can conclude that there is no specific ground or rules when it comes to choosing the best leadership style for Kirsty. Depending on the given situation, Kirsty can always decide to use transformational or transactional leadership style in order to increase the production efficiency and profitability of its business. Regardless of which type of leadership style Kirsty chooses to use, it is crucial on the part of Kirsty to develop a strong business relationship with its employees. Likewise, it is equally important for Kirsty to practice and establish a two-way communication line with her employees in order to avoid operational errors and unnecessary organizational conflicts and arguments within the working environment. *** End *** References Aarons, G., 2006. Transformational and Transactional Leadership: Association With Attitudes Toward Evidence-Based Practice. Psychiatric Services , 57(8), pp. 1162 - 1169. Burke, W., 2002. Organizational Change: Theory and Practice. Sage Publication. Eagly, A., & Johnson, B., 1990. Gender and Leadership Style: A Meta-Analysis. Psychological Bulletin , 108(2), pp. 233 - 257. Griffin, R. W., 2008. Fundamentals of Management. Fifth Edition. Houghton Mifflin Company. Johansson, O., 2004. A democratic, learning and communicative leadership? Journal of Educational Administration , 42(6), pp. 697-707. Northouse, P. (2004). Leadership Theory and Practice. 3rd edition. Sage Publications. Northhouse, P. G., 2010. Leadership. 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