Critical Evaluation of Application of Leadership Theories and Management Theories: Nissan Motor Corporation

This report provides a critical evaluation of the application of leadership theories and management theories in Nissan Motor Corporation. It discusses the broader development of leadership and management theory, evaluates the theories in the context of Nissan, and analyzes the fit between theory and practice. The report focuses on Carlos Ghosn as a leader and explores the leadership and management theories that are applicable to him.

Running head: LEADERSHIP AND MANAGEMENT THEORIES
Critical Evaluation of Application of Leadership Theories and Management
Theories: Nissan Motor Corporation
Name of the Student
Name of the University
Author’s Note:

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Table of Contents
1. Introduction...............................................................................................................2
2. Discussion................................................................................................................3
2.1 Contextual Discussion on Broader Development of Leadership and
Management Theory.................................................................................................3
2.2 Critical Evaluation of Leadership and Management Theories..........................13
2.3 Application of Critiqued Theories to Evidenced Practiced in Nissan Motor
Corporation.............................................................................................................19
2.4 Evaluation and Commentary on the Fit between Theory and Practice............20
3. Conclusion..............................................................................................................21
References.................................................................................................................23

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1. Introduction
Leadership is the core ability of any individual for leading or guiding any other
individual, team or entire organization (Antonakis and House 2013). It is a significant
process of social influence, where any individual could easily register the support as
well as maintenance of any other people for the successful completion of a
distinctive common task. Various traits are involved in leadership like power, values,
vision, intelligence, function, behaviour, charisma and many more (Parris and
Peachey 2013). The major leadership skills are communication, awareness, honesty
or integrity, innovation, development of leadership skills and relationship building.
There are few important types of leadership and amongst them, the most effective
are autocratic as well as authoritarian leadership, democratic leadership as well as
participative leadership, the LP or Laissez faire leadership as well as free rein
leadership and finally paternalistic leadership (Antonakis and House 2014). These
behavioural theories of leadership provide different perspectives to the individuals for
leading efficient leadership.
Management theories, on the other hand, are the set of generalized rules,
which provide guidance to the organizational managers for managing the company
(Hill, Jones and Schilling 2014). These theories are proper explanations for assisting
the employees in effectively relating to the business related goals and objectives and
then implementing effective means for achieving the same. There are four general
management theories that are broadly used by various organizations and managers
and these are Theory of Scientific Management, Administrative Management
Theory, Bureaucratic Theory of Management and Behavioural Theory of
Management or Hawthorne Effect. These above mentioned four theories are
considered as the most effective and significant theories to solve any type of

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managerial issue in the company (Avolio and Yammarino 2013). The overall
productivity of the organization is increased and the entire process of decision
making is simplified for all managers. Moreover, such theories encourage staff
participation and hence job satisfaction is enhanced majorly.
The following report outlines a brief discussion on the application of
leadership theories to a leader and management theories to one of the most popular
and significant car manufacturing company, known as Nissan Motor Corporation. It
was founded in December 1933 and the headquarters are in Nishi-ku, Yohohama,
Japan (Nissan-Global.com. 2019). The company is responsible for selling its cars
under the brands of Datsun, Infiniti and Nissan. They labelled their in house
performance tuning product and service as Nismo. As for 2013, Nissan Motor
Corporation was on the sixth position in respect to the largest automakers within the
entire automobile industry, after Volkswagen Group, Ford, Toyota, General Motors
and even Hyundai Motor Group. This report will focus on Carlos Ghosn as the leader
for leadership theories. He was the chairman and CEO of Nissan during the early
2000s, when Nissan was going through major turmoil. With his leadership skills,
Carlos Ghosn was able to turn the fortune of Nissan (Nissan-Global.com. 2019). This
report will further demonstrate about the application of leadership and management
theories in this organization of Nissan with relevant details.
2. Discussion
2.1 Contextual Discussion on Broader Development of Leadership and
Management Theory
Leadership theories help and allow authorized leaders in standing apart and
becoming more efficient in comparison to others. A proper leadership is responsible

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for providing guidance to a particular group of individuals or the entire organization. It
is the state or position of being a leader (Van Wart 2013). Leadership is the
subsequent capability of leading few other individuals for working collaboratively.
Decisions are undertaken easily and promptly with the help of such leadership
theories and hence a clearer vision is articulated to each and every employee of the
company. Moreover, achievable goals are established and are achieved in an
effective manner. Carlos Ghosn was the chairman and CEO of Nissan Motor
Corporation from 2009 to 2017 (Nissan-Global.com. 2019). He is considered as one
of the most successful and significant leaders and chairmen, Nissan ever had. He is
termed as “Le Cost Killer”, since he was able to reduce the vehicle conception costs
and accelerate such conceptions. In the year of 1999, Nissan was near bankruptcy,
due to lack of suitable leaders in their company. However, with the effective
leadership of Carlos Ghosn, the organization was able to remove all charges as he
orchestrated one of the company’s most aggressive downsizing campaigns.
There are some of the most popular and suitable leadership theories that
could describe the leadership of Carlos Ghosn. They are as follows:
i) Great Man Theory: The first and the foremost leadership theory that is
suitable to Ghosn is Great Man Theory (Tourish 2014). As per this particular theory,
each and every trait of leadership is intrinsic and it refers to the fact that greater
leaders are born and they are not created or made. This specific theory overlooks
each and every greater leader as individuals, who are bound for becoming leaders
with their in built traits. Great man theory is also termed as the theory that affirms the
heroes by simply checking the product of their times as well as their actions for the
outcomes regarding social conditions (Bolman and Deal 2017). This specific theory
is for the extremely influential persons, who due to their personal wisdom,

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intelligence and charisma as well as political skill that us being utilized in such a
manner, which comprises of a decisive historical impact. Great men are the products
of their societies and that the actions will be absolutely impossible without any social
condition built before the life time.
Carlos Ghosn has worked in several distinctive organizations and in every
organization, he was able to show his leadership skills (Price and Weiss 2013). With
the help of such efficient knowledge in management and leadership skills, Carlos did
not face any issue while dealing with the problems in Nisan Motor Corporation.
Carlos Ghosn, being one of the greatest and the most significant leaders in the entire
world, even comprises of some of the major and important leadership skills and
amongst them, great man theory is one of them (Breevaart et al. 2014). He had the
inborn quality of leadership and hence he possesses the required attribute to find
himself in the most surprisingly complicated subject only after influencing how a
successful leader can achieve their goals and objectives.
ii) Trait Theory: The second important and significant theory of leadership
that is quite popular for leaders in the entire world is trait theory (Cameron et al.
2014). This particular theory is an approach for studying respective human
philosophy. The trait theorists are majorly interested in the proper measurement of
attributes that could be described as several habitual patterns of emotion, thought
and behaviour. As per this specific perspective, the traits are the characteristics of
personality, which are relatively stable on time and differ across several individuals
(Chemers 2014). Moreover, these characteristics are absolutely consistent over
different situations and even for influencing behaviour. Such traits are in distinctive
contrast to states that are more transitory depositions.

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The several characteristics that are required for becoming a great leader
eventually suggest that leadership is previously destined within impossible situations
(Ciulla 2014). The leadership traits are as follows:
a) Intelligence as well as Action Oriented Judgment: The first and the
foremost leadership skill for trait theory is intelligence as well as action oriented
judgment. These types of leaders are smart and hence they make choices, which
could move the entire group forward for subsequently maintaining efficiency in the
business.
b) Eagerness in Accepting Responsibilities: The second distinctive and
subsequent leadership trait that would be effective and important for any leader is
eagerness in accepting various responsibilities (Clinton 2018). The strong leaders
eventually under take the core responsibility and does not pass any type of defeat
blame on his or her team members. He is responsible for standing by the success of
the team and also for taking ownership for the challenges in the team.
c) Task Competency: Another significant and important leadership trait, which
is extremely vital and significant for all leaders would be task competency. A great
leader is both skilled and has the capability of solving their problems (Mendenhall et
al. 2017). The team members have the ability of looking for the leader for getting
things done in a better manner.
d) Understanding the Followers as well as their Needs: It is yet another
noteworthy and vital trait of leadership for all leaders is the proper understanding of
followers and their subsequent requirements (Robertson 2016). The efficient leaders
also pay extra attention to the group or organizational members and they eventually
take care to help the members for achieving success. These leaders also want every

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person in the team to become successful and also for contributing majorly in the
team.
e) People Skills: People skill is yet another significant leadership trait that is
required to be present within each and every leader (Sanders 2017). The excellent
leadership skills are extremely important to lead the team properly.
f) Requirement for Achievements: The stronger leaders comprises of the
requirement for succeeding and then helping the group for the proper achievement
of goals and objectives (Shapiro and Stefkovich 2016). These leaders care for the
group success and are committed in helping the entire group to reach out to the
milestones.
g) Capacity in Motivating People: The core capacity in motivating the people
should be present in the leaders and hence it is vital identify the aspects for how to
inspire others as well as motivate team members in doing their best.
h) Courage and Resolution: The next significant and important trait of a good
leader is courage as well as resolution (Terry 2015). The most significant leaders are
both committed and brave for fulfilling the respective objectives of that team.
i) Perseverance: The stronger leaders eventually stick to the challenges or
issues even when few things get much difficult and the group eventually faces
various subsequent obstacles.
j) Major Trustworthiness: It is yet another important trait of leadership (Wang,
Waldman and Zhang 2014). The most effective leaders should have trust on their
team members so that it is easy to execute the objectives without much issue.

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k) Presence of Self Confidence: Most of the group or team leaders are highly
self assured and since they are extremely confident within themselves, their
followers often start to share their respective self belief with his or her team members
(Gerald and Phil. 2014).
l) Adaptability and Flexibility: The most efficient leaders do not get stuck within
a rut. They have the ability for thinking outside the box and adapting quickly for
altering situations (Schedlitzki and Edwards 2014).
m) Assertiveness: The leader should have the ability for being directive and
being assertive without even maintenance of any kind of aggressiveness (Sosik and
Jung 2018).
n) Emotional Stability: For being dependable, the strong leaders have the
ability for controlling the emotions and also avoiding over reactions.
The above mentioned fourteen leadership traits are extremely important and
significant to become an effective and efficient leader with trait theories
(Nanjundeswaraswamy and Swamy 2014). Carlos Ghosn had to deal with some of
the most significant and important challenges while working in Nissan car
manufacturing company. The company was going through major losses and hence it
was required to maintain efficiency in business. However, with these mentioned
traits, it was quite easier to deal with these challenges and Carlos was able to bring
major success in the company and also to bring the company in one of the top
positions (Liden et al. 2014).
iii) Behavioural Theory: The next important and significant leadership theory
that is important for leaders is behavioural theory (Hoch and Kozlowski 2014). It is
also termed as behaviourism and it is the core theory of learning on the basis of

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ideas that each and every behaviour is being acquired through conditioning. This
conditioning occurs through proper interaction with the subsequent environment. The
behavioural theory of leadership is being classified as it focuses on the study of
specified behaviours of the leader (Glatthorn et al. 2018). For the behavioural
theorists, the leadership behaviour would be the most significant analyst of his or her
leadership for influencing and hence as a major outcome, it is considered as the
most significant determinant for success of leadership. This particular behavioural
focused approach of leadership that gives real marketing potentials as the behaviour
could be eventually accustomed within such a way that anyone could comprise of
the specified responses to stimuli (Dinh et al. 2014). The task oriented leaders are
eventually focusing on the behaviours within the organizational structure and they
even like to keep proper control.
Carlos Ghosn was the CEO and Chairman of the Renault Nissan Mitsubishi
Alliance. These three is the strategic partnership within each and every automotive
manufacturer through the most complicated and cross shareholding agreements. In
the year of 1999, Nissan nearly faced bankruptcy and was hence facing subsequent
losses in their business (Gurdjian, Halbeisen and Lane 2014). For the purpose of
resolving each and every challenge faced here, Ghosn used his significant
leadership skills and hence was successful in resolving them effectively and
efficiently. After resolving these issues, he was named as Mr Fix It.
iv) Contingency Theories: The other significant and noteworthy leadership
theories are termed as contingency theories of leadership. According to these
specific theories, the respective efficiency of any leader is contingent on the process
of any leadership style is marching to the situation (Day et al. 2014). This leader will

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find out the type of leadership style as well as situation, in which he or she is thriving
in. The various contingency theories are as follows:
a) Fiedler’s Contingency Theory: As per this theory, an effective leadership is
dependent not only over the leading style, but also over the overall control over the
distinctive situation. It requires for being a good leader member relations and the
tasks should be done with clearer goals (Northouse 2017). Before joining Nissan,
Carlos has worked with other popular organizations and hence he was able to deal
with the issues faced in the company.
b) Cognitive Resource Theory: As per this theory, the several stress sources
are blocking the utilization of rationality within leadership (Rosenbach 2018).
Although, Nissan was going through major crisis and bankruptcy, Carlos was able to
solve them without getting stressed and hence he is termed as one of the most
efficient leaders, Nissan could ever have.
v) Transactional Theory: The transactional theory is characterized by the
transaction made between the followers and leader (Shamir and Eilam-Shamir
2018). This theory has a positive and mutually beneficial relationship. The
transactional leaders are the most efficient and effective whenever they are
developing the mutual reinforcing environment for syncing organizational goals and
individual. These transactional theorists majorly state that the human beings in
general are subsequently seeking for maximizing the most effective experiences and
also for reducing un-pleasurable experience (Spears and Lawrence 2016). The
leader member exchange theory or LMX theory is one of the major and significant
associated theory of transactional leadership theory.

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vi) Transformational Theory: The transformational theory states that this is
the process by which any individual can interact with others and has the ability for
creating a major relationship resulting in the higher trust percentage and hence there
is an increase in motivation for both intrinsic and extrinsic for both follower and
leader (Antonakis and House 2014). The rules and regulations are flexible and are
guided by the group principles. Carlos Ghosn in have brought positive changes in
the organization of Nissan and hence have achieved the end goal to develop
followers into leaders. He have even used four distinctive elements of the
transformational leadership of individualized considerations, intellectual stimulations,
and inspirational motivation as well as idealized influences. The respective job
performances of the followers in Nissan through a wide variety of mechanism after
inclusion of linking to the specific sense of identity or even sense of self to the
follower (Schmidt 2014). This is required for inspiring them and also for raising the
interests within project and hence challenging these followers in taking better
ownership for the work. This extremely effective for alignment of followers to
enhance the performances.
The management theories that are effective for the organization of Nissan
Motor Corporation are as follows:
i) Frederick Taylor’s Scientific Management: The first and the foremost
management theory for Nissan case study is Frederick Taylor’s Scientific
Management (Roueche, Baker III and Rose 2014). As per this particular theory of
management, specialization and standardization are required to be managed by
proper suggestion to the fact that work place tasks could be properly broken down
into a wider sequence of small steps. All of these scientific management principles
hence suggest that this particular scientific method for being utilized to effectively

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govern the most effective method and performing a task within the work place and
for relying on the judgment as well as personal discretion of the workers ( Priest and
Gass 2017). The work place efficiency is being achieved only after finding out an
optimal way to complete the task.
ii) Henry Fayol’s Principles of Administrative Management: As per
McCleskey 2014, the second important and significant management theory that is
suitable for the case study of Nissan Motor Corporation is Henry Fayol’s Principles of
Administrative Management. Henry Fayol selected a top down approach for
resolving the issues of organizational management. He has examined an
organization through the lens of managers as well as situations in which they are
encountering. He had believed that the management has six specific functionalities
of forecasting, planning, organizing, commanding, coordinating and finally
controlling. Nissan has effectively followed the fourteen comprehensive principles of
Fayol, however still they have faced few challenges in the business (Komives and
Wagner 2016). This was majorly because of the fact that Nissan did not have proper
management in their business previously and hence it was extremely problematic for
them to deal with the existing issues.
iii) Max Weber’s Bureaucratic Management: Heifetz and Linsky 2017 stated
that, this is yet another significant and important management theory that is suitable
for describing Nissan Motor Corporation case study. As per the bureaucratic
management theory, the structuring of organizations within a hierarchical fashion
should be focused with clearer rules of governance (Grint et al. 2016). The principles
of Weber to create a specific bureaucratic system like a clearer labour division,
separation within organizational and personal owner assets, hierarchical command
chain as well as selection and promotion of the employees on the basis of

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personalities and qualifications. It is the most efficient and rational way to establish
the organizations (Daft 2014). The approach of bureaucracy management is often
perceived as the proper establishment of processes and standards. In Nissan, the
principles of Weber were not followed for the successful maintenance of an ideal
bureaucratic system.
iv) Elton Mayo’s Human Relations Theory: As per this particular theory, the
employees are being motivated far more by several relational factors like providing
attention than by the monetary reward and environmental factor. It is important to
work on the recognition of social as well as psychological factors for successful
creation of productive organizations (Renz 2016). The people oriented management
approach needs the managers for acknowledging the subsequent complexity of
human nature or the values of social ties within work place. Nissan Motor
Corporation has not involved human relations theory within their business and hence
they were facing some of the major challenges. The team effectiveness was hence
absent in their management (Tannenbaum and Schmidt 2017). This was mainly
because of lack of team management within the company and thus the employees
were not motivated.
v) Theory X and Theory Y: As per Hill, Jones and Schilling 2014, another
significant theory of management that is extremely popular and significant for the
organization of Nissan Motor Corporation. Theory X is termed as the positive theory
and theory Y is termed as a negative theory (Tschannen-Moran 2014). These two
theories are known as theories for human work motivation and these were proposed
by managerial leader of Douglas McGregor. All of these two theories are the
complementary models of work force motivation after being applied by that
managers in HRM, organizational communication, organizational development as

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well as organizational behaviour. Theory X eventually explains the major importance
of penalties and external rewards and theory Y then highlights on the motivating role
for satisfaction of job and hence encourages the workers to take up tasks without
any direct supervision (Avolio and Yammarino 2013). Nissan has utilized this specific
theory in their organization.
2.2 Critical Evaluation of Leadership and Management Theories
The leadership theories that are considered for the leader of Carlos Ghosn
are as follows:
i) Great Man Theory: The Great Man Theory is considered as one of the
most suitable theories for understanding the entire phenomenon of leadership for
Carlos Ghosn (Parris and Peachey 2013). Carlos is the former CEO and chairman of
Nissan Motor Corporation. He possessed each and every characteristic of great man
theory and hence it was easier for him to solve the issues faced in this particular
organization. This particular theory for leadership became extremely popular in the
earliest 19th century and the most popular leaders have helped in contribution to the
notion that greater leaders are born and are not made (Renko et al. 2015). In most of
the examples, it eventually seems as if the correct person for the job seems in
emerging for undertaking control of any situation and hence leading the group of
people within success and safety.
As per some of the earliest research on leadership at people, who were
already successful and effective leaders (Van Dierendonck et al. 2014). All of these
individuals or leaders often involved aristocratic rulers, who have successfully
achieved the positions as per right. As people of a lesser social status comprises of
some of the major opportunities for practicing and then achieving major leadership

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roles, it had contributed to the ideology of leadership being an inherent ability. Carlos
can be compared with the great man theory since he was able to resolve the
financial crisis and bankruptcy within the organization (Tourish 2014). He is
considered as a great man as his leadership skills are still remembered and
compared with other leaders in the world wide. More than 40% market share was
increased and the organization gained better position within the market.
ii) Trait Theory: The next suitable theory of leadership that is perfect for
Carlos Ghosn is trait theory. A series of several traits are being considered within
this trait theory and the major aspects of personality are being considered eventually
(Storey 2016). In most of the systems and theories, the traits are something that any
person either has or does not have, however in several other cases, these traits are
the dimensions like introversion an extraversion with every person rating along with
the spectrum. Two distinctive approaches are required for defining traits, which are
internal casual properties and descriptive summaries. When Carlos Ghosn went from
the position of executive vice president of Renault Group to the CEO position of
Nissan Motor Corporation in the year of 1999, the organization was under major
impact and he figured that he had a 50 / 50 chance to revive the chronological
unprofitable automaker (Frohlich and Oppenheimer 2015). They were under 20
billion debt and it was required for Carlos to implement his leadership traits.
As per this trait theory utilizes a proper hierarchy of traits for the core purpose
of separating culture from those traits and hence trait theory can be expressed in the
cross cultural uses (Van Wart 2014). As it makes the various study of personality
difficulty, the expression of traits is much important for knowing about the current
situation to get connected to any specific individual. The trait theory eventually tends
in focusing on that individual over a situation, where they are present. This specific

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focus has relaxed in the modern studies after enabling for a major consideration of
several external factors (Price and Weiss 2013). Since this focus becomes extremely
relaxed, research subsequently expands and hence trait theory is being used by the
other individuals. With the proper implementation of trait theory, Carlos was able to
create unique within the automobile industry and within the entire industry.
iii) Behavioural Theory: The third significant leadership theory is behavioural
theory (Van Wart 2013). The psychology of behaviour refers to the theory of learning
on the basis of an idea, by which the behaviours are being acquired through
conditioning. This type of conditioning occurs through proper interaction with the
environment. The behaviourists eventually believe that the responses to the stimuli
shape the actions. Cognitions, emotions and moods are not considered in this
particular theory. The classical and operant conditioning are majorly considered in
this specific theory (Antonakis and House 2013). This particular theory of behaviour
seeks in explaining the human behaviour only after analysis of consequences and
antecedents that are present within the environment and the learned association of
that particular individual and these associations have acquired through their previous
experiences.
According to Spears and Lawrence 2016, the behaviourism theory describes
the several traditions in the behavioural perspectives and the major applications,
which are derived from them. The task oriented leaders have the concern with the
staff motivation and hence it is the major concern. The major behaviours of the task
oriented leaders are initiation, organization, clarification as well as gathering of
information (Roueche, Baker III and Rose 2014). The people oriented leaders
majorly focus on the behaviours for ensuring that the inner requirements of people
are being satisfied. The human relation is also emphasized for motivating the staffs.

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These people oriented leaders also focus on the results and tasks and they achieve
them through various means. The leaders focus after considering encouragement,
observation, listening and even coaching and mentoring (Mendenhall et al. 2017).
Carlos resolved the challenges with few solutions that he utilized for transforming
Nissan into the most profitable car maker and this was possible due to effective
working for his team.
iv) Cognitive Theory: The fourth distinctive theory of leadership is the
cognitive theory. The significant effectiveness of cognitive theory is being used in the
organization for resolving each and every issue faced by the company (Komives and
Wagner 2016). The various theories like Friedler, cognitive resource theory are
extremely popular to resolve the stress issues of the leader. Carlos has followed the
cognitive resource theory as he had solved the issues without any stress. He and his
team had put together a distinctive turnaround plan within three months on the basis
of input from the young Nissan workers and hence was able to identify the loopholes
in their business.
v) Transformational Theory: This is yet another important and significant
leadership theory that is being utilized by Carlos Ghosn (Grint et al. 2016). He had
used transformational leadership for transforming the entire scenario and how to
deal with the issues faced in Nissan. Due to transformational leadership, Carlos was
able to identify the required changes and hence creating a proper vision for the core
purpose of guiding the changes through inspiration and hence executing the
changes for bringing efficiency and effectiveness in the company (Frohlich and
Oppenheimer 2015). Carlos and his team made a specific planning for breaking
maximum of the rules of Japanese industry, such as they closed five plants, reduced

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head count by 20000 and even dismantled the traditional concepts and hence a
group of organizations were enabled to hold equity with one another.
vi) Transactional Theory: The transactional leadership major focuses on
performance, organization and supervision of the employees (Bolman and Deal
2017). This particular leadership eventually promotes compliance by the followers
through both punishments and rewards. Through these punishments and rewards
these leaders subsequently keep their followers motivated for the short term. The
leaders, who are using such leadership help the company for finding deviations and
faults (Chemers 2014). Similarly, Carlos Ghosn has utilized transactional leadership
theory within their organization for the proper and effective removal of issues or
problems faced in Nissan Motor Corporation.
The management theories for Nissan are as follows:
i) Frederick Taylor’s Scientific Management: The first management theory
that is being used for comparing the organizational position of Nissan is Scientific
Management (Dinh et al. 2014). It was required for proper analysis and synthesizing
of work flows. The main objective of this theory is to improve the economic efficiency
and majorly labour productivity. Since, the organization had to work with their
labours, it was vital to manage the labours.
ii) Henry Fayol’s Principles of Administrative Management: The second
management theory that is suitable for Nissan is Henry Fayol’s principles of
administrative management (Glatthorn et al. 2018). There are 14 principles in total
and each of them is equally important for understanding the position of the company.
They should divide their work amongst the organizational members for proper
analysis of their processes.

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iii) Max Weber’s Bureaucratic Management: As per this theory of Max
Weber, bureaucracy is based on the systematic formation of Nissan and is being
designed for ensuring efficiency as well as economic effectiveness (Gurdjian,
Halbeisen and Lane 2014). This is the ideal model for better management and even
the administration for bringing the power structure of Nissan into focus.
iv) Elton Mayo’s Human Relations Theory: According to this particular
theory, the human relations with the organization is required to be fulfilled under
every circumstance (Nanjundeswaraswamy and Swamy 2014). This could only be
done after changing the working conditions of employees. Nissan Motor Corporation
should have changed the working conditions of their employees and thus it would
have been easier to deal with the financial crisis of the company.
v) Theory X and Theory Y: The final theory is Theory X and Theory Y. These
are required for providing better motivation to the employees. Theory X is positive
theory and theory Y is negative theory (Robertson 2016). The resource management
and organizational communication are also considered in this scenario. Nissan has
properly dealt with the issues after involving Carlos Ghosn.
2.3 Application of Critiqued Theories to Evidenced Practiced in Nissan Motor
Corporation
i) As per Shamir and Eilam-Shamir 2018, the most important and significant
characteristics of the Nissan organizational members under the leadership of Carlos
Ghosn is that the leader should be in power and the respective situation must
determine which kind of leadership is required as well as the major effectiveness of
the leadership. Carlos can be compared with the great man theory of leadership as
he comprised of each and every feature of a great leader (Tannenbaum and Schmidt

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2017). The most significant and important assumptions of a great man leader majorly
include leaders are born and not made and they possess proper attributes that were
being inherited and such leaders could even arise whenever there is a major
requirement. Since Nissan was going through major crisis in the early 2000s, it was
required for Carlos, the then CEO and Chairman, to take necessary steps and apply
his leadership skills (Wang, Waldman and Zhang 2014).
ii) There are two distinctive approaches for defining traits, which are as
internal casual properties and as completely descriptive summary (Antonakis and
House 2014). The internal casual definition states that the traits are influencing our
behaviours and also for leading the teams to do the things in line with this specific
trait. Moreover, these traits as descriptive summary are the descriptions of various
actions, which does not try in inferring connection. The trait theory for leadership
majorly emphasizes on the proper and effective identification of different personality
traits as well as features, which are solely linked to the successful leadership within
several significant situations. It is termed as the earliest type of investigations within
the nature of an efficient leadership and is being tied to this great man theory ( Hill,
Jones and Schilling 2014). The major traits involved in this particular theory of trait
are intelligence people skills, decisiveness, competency, creativity, trustworthiness
and many more.
Each of these above mentioned skills are quite important and significant for
maintenance of efficient leadership for the specific individual (Parris and Peachey
2013). As per Carlyle’s theory of traits, it is being shaped by some of the extra
ordinary leaders and they comprise of the core capability for leading his followers
and an entire team. According to Carlyle, trait leaders are not created or developed,
rather they are born with such qualities. The most significant rationale of this theory

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LEADERSHIP AND MANAGEMENT THEORIES
of leadership include few traits producing respective behavioural patterns; these
specified patterns are consistent within several situations and the individuals are
born with these leadership traits or attributes (Van Dierendonck et al. 2014).
2.4 Evaluation and Commentary on the Fit between Theory and Practice
There are six distinctive leadership theories mentioned for Carlos Ghosn in
Nissan, which are great man theory, trait theory, behavioural theory, cognitive
theory, transformational theory and transactional theory (Nissan-Global.com. 2019).
These mentioned theories are compared with Carlos since all the characteristics
were present within him and hence it was easier for him to deal with the challenges.
They were hence fit for the leader. Similarly, the management theories are also fit for
the organization of Nissan for understanding the issues faced here.
3. Conclusion
Therefore, from the above discussion, it could be concluded that leadership is
one of the most important and significant requirement in any organization or team for
producing better performances in comparison to others. The main reason for this
type of performance is that leaders provide proper guidance to their team members
or followers and hence it becomes quite easier for the team or organizational
members to complete their work effectively and efficiently. Leadership would be the
subsequent art of motivating the distinctive group of individuals to act towards the
successful achievement of a common objective or goal. Within a business setting, it
eventually refers to the fact that directing colleagues and workers with a proper
organizational strategy for the core purpose of fulfilling each and every need of the
company. Leadership even captures the major essentials to be able to inspire others
and being prepared for doing so. An effective leadership is completely on the basis
of ideas, whether they are borrowed or they are original; however does not taken

22
LEADERSHIP AND MANAGEMENT THEORIES
place until and unless all of such ideas could be communicated with others in such a
manner that engages them enough for acting as the leader is wanting them to act.
The leader of the organization is the true inspiration and director of actions
and that particular person within the group subsequently possesses the major
combination as well as leadership skills, which makes others wanting to follow his
and her direction. The leadership is subsequently linked to the performances and
when the leaders provide proper guidance to the team members, the organizational
goals and objectives are being fulfilled without much complexity. The effective
leaders eventually increase the organizational bottom lines. When any specific
individual within the leadership role is not meeting the respective profit expectations
that are being set by the boards, shareholders and higher management; he or she
will not be declared as a successful leader.
The terms of leadership and management are utilized interchangeably. The
management refers to the organizational management structure as the leadership
and towards individuals, who are the original managers as the leaders of several
managerial teams. The leadership needs attributes, which extend beyond the
management responsibilities. For being effective in nature, the leader certainly has
to control the major resources. However, leadership even includes few attributes like
communication, inspiration and supervision and these are the primary skills to be a
leader. There had been a major evolution of a leader in organizations or teams and
how to deal with the complexities faced by any leader.
The above provided report has clearly outlined a detailed discussion on the
proper application of few leadership theories to one of the most popular and
significant leaders in the world, namely, Carlos Ghosn and application of

23
LEADERSHIP AND MANAGEMENT THEORIES
management theories to the most popular and significant car manufacturing
company, known as Nissan Motor Corporation. Carlos Ghosn is considered as the
best leaders or chairmen, Nissan could ever have. This report has properly
described the leadership skills and traits that Carlos has and his unique and
distinctive leadership for resolving issues within the organization of Nissan.
Moreover, subsequent details regarding the efficient application of leadership as well
as management theories within Nissan are also provided in this particular report.

24
LEADERSHIP AND MANAGEMENT THEORIES
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