Leadership: Theories and Challenges

This document explores different leadership theories such as trait theory, situational leadership, transformational leadership, and transactional leadership. It also discusses the challenges faced by organizations in implementing effective leadership strategies. Additionally, it examines the impact of macro and micro factors on leadership. The document provides insights into the importance of leadership in organizations and the various approaches to leadership.

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Leadership

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Table of Contents
Introduction...........................................................................................................................................2
Culture and Organizational leadership...................................................................................................2
Trait theory........................................................................................................................................2
Situational Leadership.......................................................................................................................3
Transformational Leadership.............................................................................................................3
Transactional Leadership...................................................................................................................3
Follower as Leaders...........................................................................................................................4
Distributive Leadership.....................................................................................................................4
Macro and Micro Challenges.................................................................................................................4
Micro Factors....................................................................................................................................4
Macro Factors....................................................................................................................................6
Leadership Management........................................................................................................................7
Coaching and Talent Management....................................................................................................7
Training and Development and its Role in Leadership......................................................................8
Belbin Team Roles............................................................................................................................8
Conclusions...........................................................................................................................................8
Bibliography...........................................................................................................................................9

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Introduction
Leadership is the ability of individual or group of individuals who can influence others, guide
followers to actively participate in organizations. Leadership involves in making effective
and sound decisions that creates and articulates a clear visions in achieving goals that provide
followers to think and apply necessary tools to apply these knowledge. Leaders help
themselves and influence others to do things in an easy manner and with the abilities to do
something more talent and with required skills. It empowers the strengths and focus on
influencing other to motivate and learn new techniques. Studies of leadership have introduced
the different theories that involve functions, behaviour, traits, situational interactions, values
and intelligence among others. The following attributes comes with the more interacting
powers of intelligence, courage and discipline to complete the work on time. The report is
focus on the attributes and principle issues which are faced by an organization in respect to
influencing, leading, managing and development of talent. The management skills which
enhance the knowledge of managers to nurture the talent effectively and there are various
which will practice the organisation to adapt the leadership styles.
Culture and Organizational leadership
There are various styles and relevant theories of leadership in an organisation that brings
smooth functioning of the environment in the structure of the organisations. Different types
of leadership style are to be focussed like trait, situational, transactional, transformational,
followers as leaders and distributive leadership that influences the practice in the organisation
structure. There is visionary leadership that influences the path and in this there are clear
visions to the particular approach which is globally associated. The visionary leaders are not
grandiose as the main aim and visions left the footprints to the uncertainty and cloudy vision
of the dreamer. Corporate leadership culture influences to the beliefs that determine
employee management and employees are more towards to interact and handle the outside
business transactions.
This is implied and develops the organically with over time, cumulative traits of the company
that hires. The benefits of the strong corporate culture are more powerful and create to
manage the development in the organisation structures. Relation leadership influences the
relations that are to be built globally and internationally. They are most in respect to
confidences and never betray a conversation in private. They practice for empathy through
their deliberately enquiry. System leadership enhances the contributions that system wants to
appear in the organisation structure. Reflective leadership also have dimensions of leadership
to observe and re-create the functioning of the organisations (Reeves, 2019). Theories are
being applied to the various forms and situations in the structure of the organisation. The
demands of leadership are almost invariable that exceeds the demands and capacity of single
person to meet the required demands in hand. Some of them are stated below to clear the best
theory approaches in the structure of the organisations.
Trait theory- This is often referred to as best way so see as leadership traits and early
leadership studies that are focus on trying to identify that qualities are traits are being
processed in leaders. The typical qualities which are found in trait leaders are intelligence,

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motivation of the leadership, honesty and integrity, self-confidence and sociability. The
Emotional stability of a leader should be known to the actions and that should be biased and
know how to control anger. There are recently researchers that are included as emotional
intelligence and extroversions ( Kanodia & Sacher, 2019). The criticism of the trait approach
is that there is no evidence about the degree of various traits because people have various
traits with different degrees. The test for the measurements is being introduced and no
conclusions can be drawn from these. There are no indications to the comparative importance
of different traits that are present. There are no uniform lists of traits that can define authors
to be list of traits.
Situational Leadership – This is a leadership style that is focussed on when the leaders or
managers of the organisations have a quality of adjusting nature to the situations that that fits
the development level of followers. It is timeliness and more repeatable framework that
enhances the framework for leaders to match with behaviours and groups that they will
attempt to influence in the functions (Situational Leadership Pro & Cons, 2019). It is based
on the main relationship between followers and leaders that serves the framework to adapt the
situations on the performance readiness. This theory suggests that leaders can be in any
situation that has to deal and react to such situations in the present. These theories have a
large criticism as no single theory of leadership is best to treat in every situation and has
positive impact. The leaders are more cognitive ability that can transform in order to adapt
and implement different leadership styles that depends on the situations. The theories
evaluate a model of behavioural that divides the visions, tasks and motivated groups or the
followers (SITUATIONAL LEADERSHIP®, 2019).
Transformational Leadership – This tells about the leadership style that creates high
performances workforce that has increased importance in all the departments, divisions and
other hierarchies in the organization as a whole. These leaders are more subjective top their
visions, daring and risk takers in the structure of the organisations. The charismatic appeal
defines the traits of the personality as this only cant makes leaders more innovative to the
organisation. The qualities define the transformational leaders to think in intellectual
stimulations, inspirational motivations, individual considerations and idealised influences of
the qualities that are found in transformational leaders. The main criticism of this theory
states the leaders use techniques of impression management and tends to lend itself to amoral
side of self-promotion by leaders. The theory is difficult to understand the behaviour of the
people and followers might always get manipulated by leaders and that results in chances that
they may be loose more rather than gaining.
Transactional Leadership – It is a style of leadership that promotes the leader in compliance
by the followers through rewards and punishments. The theory motivates the leaders for short
period of time and the main features lies in positive and negative reinforcements. The
characteristics of leadership are practical resistance to change in the atmosphere, extrinsic
motivation, discourage independent thinking, passive thinking and more towards directive
behaviours that emphasis on corporate structure. There is self-interest that emphasise on
motivation of transactional leader and he is one of appealing to all the interest of the
employee (10 Transactional Leadership Characteristics, 2019). The criticism of this

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leadership theory is that there is lack of motivation to the employees, they are unbendable to
the culture, lack of leadership development and if there is new creativity launched,. Then it
will suffer from the internal organisation structures. They are most sensitive because they
may not look on the perception of their people and reduce the morale of the employees on
longer basis. A collaborative idea that makes the company will have to suffer if there is
launch of new practice in the organisation. If people will not get freedom to advice for the
creative solutions, then it will have negative impact on the whole organization (Weber & M.
Bass , 2019).
Follower as Leaders – Leader and follower is simply at any one time and assumes
follower’s roles to be more important and it is simply as to assume followers role. This is
certainly in conflict with the temporary leadership approach which appears to have historical
perspective on the great man model of leadership. The followers and leaders are cooperative
in nature but when they are not and may be in other directions, and then it will be result in
bad leadership traits. Overconfidence leads to performance in the issues and the overcome
may be results in worst plans and visions (Leader-Follower Theory and the transformation
organisation, 2019).
Distributive Leadership - This leadership is focussed on the concept of embraces an
approach that is being shared with the staff within the organisations. The distributive leaders
are more helpful and distribute the work which is assigned to them with their staff and guides
them to influences on culture, philosophy and directions. The basic ideas distributed in the
leadership are not all complicated and organised system people are more typically specialize
for their competencies. Sometimes these theories also confuse and contradict on the
depictions that are being argued in political phenomena that replete with the main uses of
powers. This remains silent on the persistent structural barriers and if these are not properly
distributed, then it will have less influence on the organisation structure (Lumby, 2019).
Macro and Micro Challenges
Macro and micro factors of challenges which are faced by an organisation have wide role to
play in the development. The micro level perspective of the organisation is having small
details and daily interactions that are the most important challenges in the organisation. The
micro factors include customers, employees, suppliers and shareholders. The important micro
factors and challenges which are faced by organisation are the companies, suppliers,
intermediaries, public and its competitors in the internal structure. Some of them are as
follows (Micro Environment Definition, Factors & Example, 2019).
Micro Factors
Customers – Customers in every business wants to make fair relationship with organisation
that has good Market reputations in the organisations. Every business needs such customers
that create impact and revolved around fulfilling the needs and wants of the customers. Micro
factors have a biggest challenge that how to procure their customers and retain them for
longer period of time.

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Employees - They are directly related to the success components of a business and they are
more diversified to the presence of the employees that depends on accessing trainings and
motivation practices to them in an organisation. Employees if trained properly, then they can
impact the positive side of the organisation in future and achieve success in longer time.
Suppliers - Supplier is the person from who all the raw materials or finished goods are being
purchased. They act as an important part of the whole organization structure and their main
identity is crucial to identify the existing supplier in the market. For example, when there is
an increase in the prices by supplier of raw materials which are to deliver to company, he will
look at the strategies of the market of organizations that will end up increasing the prices of
finished goods.
Competitors and Shareholders – The competitor’s enables a company to design the
strategies of the marketing according to the prevailing market conditions. Keeping a close
look on all the competitors will make you realise for some different practices that enables the
design its marketing plans easier. These are the people who can create the positive
environment as well as leads to negative environment and has direct impact on the
effectiveness of the organisations inn long and short run. For example, Videocon and Onida
are the competitors of Philips TV in their television market. So, they use competitive
strategies to grow and make various techniques for development of new launches.
Government – The departments of government make some rules, regulations and policies
such as credit policy, housing policy and pricing policies for the organisations and that will
affect the whole scenario of the organisations. The people will effect and it is the biggest
challenge for the structure of the organisation to adapt these challenges that occur worldwide
by the governments.
Source: (Marketing Environment, 2019).

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So, these are all the micro factors of the organisations that are to be considered in effective
planning of the organisations (Pratap, 2019).
Macro Factors
A macro factor depends upon the external environments and sometimes in the organisational
level that affect the internal structure of the organisation structures. A PESTLE analysis is an
effective practice that is used by marketers to briefly analysis all macro factors that have
directly impact on the organisations. The results are directly affecting to identify the threats
and weakness of the organisation. A PESTEL analysis is acronym that guides the macro
forces that are faced by an organisation. The letters states the meaning of technological,
economic, social, environment, political, and legal. It is based on situation analysis of the
outside environment that affects the whole scenarios of the internal organisations.
Organizations that are monitoring and responding to particular changes in macro environment
that are able to clearly differentiate the competitions and creates competitive advantage
between macro environment (What is a PESTEL analysis?, 2019).
Political Factors – These determines to the extent where government and the policies may
direct impact on organisation or an industry with specific streams. This mostly includes
stability and policies of the governments with fiscal and taxation policy also.
Economic Factors- These factor includes general monetary values, exchange rates, balance
of payments, inflation rates and so on. The financial environment influences the customers in
buying behaviour that results in either expanding his all disposable income or decreasing the
whole income. An organizations is more effective when relates to the products but they
should have individuals that has enough cash to spend on such upcoming factors (Economic
Factors , 2019).
Social Factors – The vast majorities of an organisation is depend upon the socio and cultural
factors that arises in the outside environment. These are not directly affected the organisation
but has major role in affecting the whole scenario of the internal organisation. The lifestyle,
convictions, culture are the components which we can see around us. The society is a
combination of subcultures and diversified cultures. For example, when we see distinctive
groups like Kashmir and Punjabis, they are different from our culture as their habits and
personality are also different (Pestel Analysis, 2019).
Technological Factors- These factors includes the innovation in the technology and the
development that directly affect the organisation. These are basically happens in the
industries as changes in the technological environment or any updates with mobile
technology, automation or research and development. These all the factors that are consider
in technological environment of the organisations (PESTEL: A Framework for Considering
Challenges, 2019).
Environmental Factors – These factors are having relation with surrounding environment
with the ecological aspects. Corporate social responsibility element is important in terms of
environments and a factor includes climate, waste disposals, recycling procedures and
sustainability.

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Legal Factors – An organisation with its legal framework knows what is legal and what is
not. Awareness of legislations that affects the business operations by consumer law,
international as well as trade regulations, employment legislations with health and safety are
all the constituents in legal environment.
PESTEL analysis helps an organisation to look effectively and adapt the changes with
external forces and analyse how they impact directly to business. The outcomes of pestle
analysis help to formulate the strengths, weakness, opportunities and threats of the
organisation structure (Jurevicius, 2019).
Source: (MARKETING THEORIES – PESTEL ANALYSIS, 2019).
Leadership Management
Organisation and leadership are connected with each other and influence the various
programs like coaching, talent management, training and rethinking of various international
terms in the organisations. Coaching helps to build more confidence, practices that help an
organisation to grow more with individualism and reach the goals and targets of the
organisation. Some of the various methods that help business to grow are as follows:-
Coaching and Talent Management
Coaching in any organisation builds more clear perspectives on all the challenges, increased
confidence, and enhanced decision making roles with interpersonal efficiency and
effectiveness (Coaching in Organisations, 2019). They both are interrelated terms that
influences the organisation culture for so many years. Coaching is most essential part of
talent management and they retain the employees to perform with managers to recognize the
perspective of coaching and mentoring as they are the right tools for right people. When these
both are developed in organisation, the growth and efficiency will be increase and impact of
healthy environment will be most powerful. These programs help all the managers to
recognize the opportunities that serve the goals of the organisations. Both the programs teach
and ask the questions that will reinforce the approach in actualizing the outcomes (Bryant,
2019).

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Training and Development and its Role in Leadership
The organisation who involves in training and development of individuals are more active
and it is the most formal activity that is to be developed in the whole organisations. Training
and development encourages learning’s as when they are encouraged their work and
productivity is more. Recognitions and benefits should be provided to them if they achieve
something good in the organisations (Landrum, 2019). There are various benefits of
leadership training and they increase the skills and requirements of an individual in the
organisations. Some of them are (Leadership Skills Training, 2019).
 It helps to increase team productivity when work in groups.
 It decreases turnover of employees and improve leadership styles.
 It will help you to raise future team leaders for whole organisations.
 Communication skills can be enhanced and removal of conflict management
techniques can be adopted.
 Achieving to formulating of implemented leadership strategies and able to create
employee friendly policies within the organisation structures (Chopra, 2019).
Belbin Team Roles
The methodology of Beblin team roles helps to understand the innovation of the creativity in
the structure of the organisations. Belbin has used to research the investigation that how
teams roles of the members of team can helps you to identify the best way using the right
variations of team roles. It is a diagnostic tool that enhances the individuals to do better in
team work ( ARITZETA , SWAILES , & SENIOR, 2019).
Plants are more creative as they are good in solving unconventional ways. The monitor
evaluator can check and make judgements whenever required to weight up the team options
in their not passionate ways. Coordinators are focussed on objectives to team and draw out all
team members with delegation of work. A resource investigator provides the internal
knowledge on the oppositions for the teams. Implementers and completer always finishes in
most effective at the end of task to scrutinised the required work for errors and obtain highest
quality control. Team workers, shapers and specialist increases the knowledge for team and it
is keep moving with the lose focus to the momentum (Mostert, 2019).
Conclusions
The report suggests that organizations are a combination of all the aspects that are connected
with internal and external business environments. To develop the effective organisations,
there should be adaption of the leadership skills and the principles that are subject to critically
analyse and influence the culture of the organisations with practices. This should be
recognising of practical application of theories and approaches with the micro and macro
challenges in the structure of the organisations. The approaches of different leadership styles
help to guides the effective role of managers. Talent management and coaching’s having been
designed for the role in leadership to evaluate and examine the culture of the organisations.

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