Impact of Leadership and Management Styles on Employee Behavior and Organizational Performance

This business report explores the impact of leadership and management styles on employee behavior and organizational performance. It discusses different leadership styles, such as democratic, autocratic, and transactional, and their influence on employee behavior. The report also examines various motivational theories, including situational leadership theory and the two-factor theory of motivation. The findings highlight the importance of leadership and management styles in shaping employee behavior and improving organizational performance.

Business report
Table of Contents

INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Styles of leadership and management....................................................................................1
Leadership, management, and motivational theories.............................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................6

INTRODUCTION
The management and leadership styles lead a vital influence and impact on the behaviour
and attitude of staff as plays a crucial role in motivating and directing employees for better and
timely achievement of goals thus, create significant impact on overall performance of orgnisation
(Popli and Rizvi, 2017). The selected orgnisation for current business report is Aston martin
which is a well known luxury British Automotive brand dealing in luxury cars and electric
vehicles across many parts of world and the headquarter of which is situated at England, UK.
This report consists a description about styles of leadership and management along with
motivational, management and leadership theory to evaluate there influence and impact on staff
behaviour and organizational performance.
MAIN BODY
Styles of leadership and management
The styles of leadership and management mainly reflects the way and techniques that are
used by managers and leaders to direct and guide their subordinates and employees thus, lead to
a significant impact behaviour of staff and also create influence on overall performance of
organisation (Novak, Breznik and Natek, 2020). A review of three commonly used management
and leadership style are made in context of Aston martin to evaluate their impact and influence
on staff behaviour and organisational performance.
Democratic leadership style or participative management style
Under this style of management and leadership all member of group or employees are
allowed to take participation in the decision making process. Thus, it is leadership style that is
based on proper involvement and participation of all employees that ensures more effective and
better decision making on the basis of view point and thinking of whole staff that enhance the
morale employees and at the same time ensures high productivity and better performance for
organisation (Al-Sada, Al-Esmael and Faisal, 2017).
Thus, it can be evaluated that implication of democratic leadership styles lead to positive
influence on behaviour of staff thorough leading better encouragement and motivation in
employees that enhance their work efficiency and overall performance of organisation. For
example: Adoption of democratic leadership style at the workplace of Aston martin would lead
to better participation of all employees in decision making and other activities that enhance the
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creativity and motivational level of employees leading a positive influence on behaviour of
employees. Further, effective communication and team bonding is also lead by democratic
leadership style that reduce the chances of chaos and conflicts among workforce and create a
positive workplace culture that lead to efficient behaviour and enriched performance of
employees and overall organisation (Clark, 2017). Therefore, it can be reviewed that enhanced
workplace creativity and better moral in employees is lead by democratic leadership style that
have a encouraging influence on employees of Aston martin that lead to positive impact on
overall performance of this organisation.
Autocratic leadership style
This leadership style of managing person is mainly associated with control of one person
who takes all the decisions for an organisation without allowing participation of any group
member or staff. Thus, under autocratic leadership style all the decisions and choices are based
on the belief and view point of leaders and manager which involve giving orders and dictating
policies to direct staff for achieved set goals (Solomon, Costea and Nita, 2016). Thus, Autocratic
leadership does not allows any participation of employees and they are meant to follow the rules
and direction as stated by the leaders and managers.
Thus, it can be reviewed that autocratic leadership style lead to a negative influence of
behaviour and attitude of employees as no freedom of opinion and sharing of view point is
allowed. Further, also hamper performance of organisation as lead to creation of issue of high
employees turnover as not much bonding or loyalty is created in employees who are only meant
to follow the decisions and direction of leaders. For instance: implication of Autocratic
leadership style in Aston Martin lead to strong centralized control and provide maximum
reasonability to leaders to give orders and instructions to their subordinates. Thus, it can be
evaluated that adoption of autocratic leadership style lead to creation of de-motivation in
employees as they are not allowed to share their view point and creativity that lead to negative
impact on behaviour of employees of Aston martin. At the same time implication of autocratic
leadership style negatively influence the performance of organisation as lead to dissatisfaction
among employees that reduce their performance and efficiency and also enhanced the chances of
high employee turnover that reduce the production capability and performance of an organisation
(Garza, 2018).
Transactional Management style
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It is management style under which use of both rewards and punishment are made by
leaders to motivate and direct employees for accomplishment and achievement of a desired
gaols. Thus, use of rewards focuses on creating a vision and spearheading change which
motivates employees through ensuring rewards and higher incentives in exchange for task
performance and enhanced efficiency. Thus, implication of Transactional management style lead
to a positive impact on behaviour of employees but it also more emphasis on following order and
directions of leaders by the means of rewards or punishment thus, limit the creativity and level of
self dependence of employees that could be reason of dissatisfaction (Armstrong, 2016).
Therefore, it could be reviewed that use of Transactional leadership style lead to a
positive and more optimistic impact on the behaviour of staff as it ensures better incentives and
rewards for their efficient performance thus, also lead to enhanced productivity and performance
of organisation. Beside this, use of Transactional leadership style also ensures better creation and
achievement of desirable goals as lead to better direction and encouragement in employees that
motivates them to achieve set targets on time to earn better rewards. In context of Aston martin,
managers keeps a better control and check on the performance and productivity of employees
through implicating transactional leadership style which ensures higher organisational
performance. Regular rewards in terms of bonus, promotion and other incentives are given to
efficient employees by Aston martin to motivate them for the same performance in future while
punishment like demotions are yield on inefficient employees to direct them for better
performance in future (Mohiuddin, 2017). Thus, overall an optimistic and encouraging influence
is lead by transactional leadership on behaviours of staff of Aston martin to work hard to get
rewards that improves overall performance of this orgnisation through leading timely
achievement of desirable gaols.
Leadership, management, and motivational theories
Use of following leadership, management, and motivational theories are made to yield a
better explanation about the impact of leadership and management on behaviour of staff and
performance of organisation.
Situational Leadership theory
This theory of leadership is associated with the leaders who adopt and implicate different
leadership styles for directing and motivating employees as per the situation and development of
level of subordinates and team members. Thus, situational leadership style is an effective way to
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set a balance between maturity level and needs of employees as per the prevailing circumstances
thus, a set a beneficial balance for betterment of whole organisational (Dal Mas and Barac,
2018).
It could be explained that situational leadership lead to positive impact on behaviour of
employees as it lead to adoption of a leadership style by the managers that fits and suits the
current needs and motivational level of employees along with setting a balance with overall goal
and objective of organisation. For instance, in case of Aston martin the managers adopt
democratic leadership style in its day to day operations that allows proper participation of all
staff and subordinates to make them feel more motivated and committed towards organisation.
But at the time of adverse situation when fast decision making is required to overcome a sudden
problem implication of Autocratic leadership style is made to have a fast and quick decision
making that can lead to de-motivation and lack of commitment in employees but ensures meeting
up of sudden issues to achieve organisational gaols (Huber, 2017). Thus, it can be evaluated that
situational leadership theory keeps a coordination between style of leadership and present
situation to ensure more effective guidance and motivation for employees that lead positive
impact in both behaviour of staff and performance of organisation.
Scientific management theory
This theory of management was developed by Fredrick Taylor that aim at improving the
efficiency level of employees and overall labour productivity that can be achieved only through
leading better motivation and direction for employees. The implication of different piece rate
plan yield support to transactional leadership style that emphasis on the fact that if efficiency of
an employee is greater than defined standard that should be paid 120% of normal piece rate that
is 20% extra as reward but if efficiency of an employee is less than set standard than should be
paid off only 80% of normal piece rate i.e. 20% less as punishment (Management Theories,
2020). Thus, scientific management theory clearly supports the transactional leadership style that
has positive impact on behaviour of employees as it motivates them for better performance to
earn high revue.
Further, it could be also explained that four main principles are lead by Scientific
management theory that consists Science in pace of rule of Thumb, Harmony not Discord,
Cooperation in place of individualism along with Development of Each and Every Person their
greatest efficiency and Prosperity (Al-Sada, Al-Esmael and Faisal, 2017). Thus, it can be
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evaluated that scientific management theory brings more cooperation and harmony at workplace
that lead to positive behaviours among staff along with meeting their needs and expectation.
Further, in context of Aston martin, regular training and development programmes are also lead
for betterment of skills and competencies of employees that motivates them for better
performance thus, lead to enhanced productivity and performance of overall organisation.
Two factor theory of motivation
This theory is commonly known as Herzberg's motivation-hygiene theory that has
divided all the factors that are present at workplace of an orgnisation into two main parts which
have significant contribution in motivating employees and leading a better place of work for high
level of satisfaction in employees (Novak, Breznik and Natek, 2020). These two main factors
provided by Herzberg's motivation theory are evaluated below in context of Aston martin to
explain its relationship with behaviour of staff and performance of organisation.
Motivating factors – These are the factors that motivate and encourage an employee to
work hard and mainly found within the actual job itself. The motivating factors that could be
provided by Managers of Aston martin to direct its employees consist of higher achievements,
better recognition and enhanced responsibility along with advancement and growth opportunity.
Thus, it can be evaluated that motivating factors plays a vital role in Aston martin to ensure
positive and encouraging behaviour of employees that motivates them for better performance to
get more advancement and recognition at workplace that is leading optimistic influence in
overall performance of organisation.
Hygiene factors- These are termed as maintenance factors and are mainly extrinsic to
work but are necessary to maintain high satisfaction level in employees. The main hygiene
factors in context of Aston martin consist of job status, salary, work conditions, insurance,
supervision, security etc, that necessary to build a better relationship among employees and
managers (Popli and Rizvi, 2017). Thus, hygiene factors does not motivates employees for better
performance but keeps them satisfied and loyal towards company and organisation and develop a
positive behaviours towards organisation and work that lead to enhanced organisational
performance.
Thus, it can be explained that both motivation and hygiene factors keep employees
motivated and satisfied to have a positive behaviour and attitude towards work along with
optimistic nature to work hard for betterment and enhanced organisational performance.
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CONCLUSION
On the basis of above stated business report it can be concluded that democratic, autocratic
and transactional are many leadership and management styles that lead to significant impact on
behaviour of staff and performance of organisation. It has been summarised that, democratic
style ensures proper participation of all employees that lead to an optimistic behaviours and
enhanced performance of organisation. Beside this, use of situational leadership theory lead to
better balance between leadership style and current circumstances that ensures more effective
motivation and direction for employees. At last, it can be summarised that use of motivational
theory like two factor theory also lead better influence and impact on behaviour of staff and
organisational performance through meeting needs of employees and motivating them to work
hard for accomplishment of organisational goal.
REFERENCES
Books and journal
Al-Sada, M., Al-Esmael, B. and Faisal, M. N., 2017. Influence of organizational culture and
leadership style on employee satisfaction, commitment and motivation in the educational
sector in Qatar. EuroMed Journal of Business.
Armstrong, M., 2016. Armstrong's handbook of management and leadership for HR: Developing
effective people skills for better leadership and management. Kogan Page Publishers.
Clark, L., 2017. Implementing an institution-wide community-engaged learning program: The
leadership and management challenge. In Learning Through Community Engagement
(pp. 133-151). Springer, Singapore.
Dal Mas, L. O. and Barac, K., 2018. The influence of the chief audit executive’s leadership style
on factors related to internal audit effectiveness. Managerial Auditing Journal.
Garza, O., 2018. The Relationship Between Leadership Style and Conflict Management Style of
Christian Pastors (Doctoral dissertation, Grand Canyon University).
Huber, D., 2017. Leadership and nursing care management-e-book. Elsevier Health Sciences.
Mohiuddin, Z. A., 2017. Influence of Leadership Style on Employees performance: Evidence
from Literatures. Journal of Marketing & Management. 8(1).
Novak, A., Breznik, K. and Natek, S., 2020. How leaders can initiate knowledge management in
organizations: Role of leadership style in building knowledge infrastructure. Human
Systems Management. 39(1). pp.37-50.
Popli, S. and Rizvi, I.A., 2017. Leadership style and service orientation: the catalytic role of
employee engagement. Journal of Service Theory and Practice.
Solomon, I. G., Costea, C. and Nita, A. M., 2016. Leadership versus management in public
organizations. Economics, Management and Financial Markets. 11(1). p.143.
Online:
Management Theories. 2020. [Online] Available Through:<
https://www.technofunc.com/index.php/leadership-skills-2/leadership-a-management/
item/management-theories>.
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