Elon Musk's Leadership Style Analysis

This assignment analyzes the leadership style of Elon Musk, specifically examining his ethical practices and their influence on companies like Tesla and SpaceX. It explores how Musk's approach to leadership, including honesty, transparency, and a commitment to innovation, has contributed to his success. The analysis also considers potential downsides of Musk's leadership style, such as high-pressure work environments and strict rules, and discusses the overall impact on employee morale and company performance.

LEADERSHIP AND MANAGEMENT THEORY
AND PRACTICE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1 Leadership styles with leadership theories...................................................................................3
2. Leadership qualities with leadership theories..............................................................................5
3. Ethical leadership with advantages and disadvantages................................................................7
CONCLUSION ...............................................................................................................................9
REFERENCE.................................................................................................................................10

INTRODUCTION
Leadership and management are connected to each other as they are inseparable (Renz,
2016). Management is the art of getting things done through others. It refers to the
administration activity that sets the goal for the company so that they can retain in the market for
longer period and will be able to earn more profit. This report discuss about the use of
management and leadership in both theoretical way and the practical way.
1 Leadership styles with leadership theories
Leadership style refers to the styles applied by the leaders to achieve an efficiency in their
work so that they can accomplish their goals on time (Pedler, 2011) . Elon musk is a great leader
as he uses many styles and theories to achieve success. Some are as follows: Autocratic leadership styles: Autocratic leadership style is considered as the one in which
the person itself has control over the decisions and judgements. Usually, most of the
choices are based on the personal ideas and judgements as well. Elon's life wasn't easy.
He has been bullied very badly when he was in school and also, he had a very
challenging relationship with his father because as per Elon, his father didn't ever let him
to follow his dreams. Elon Musk was grown in the Afrikaner culture where he gives more
value to brawn over brain. He follows old exhortation to live each day, in his business life
as well it gives more importance to rules and regulations. It shows that he was
implementing autocratic leadership style (Hayes, 2014). Democratic leadership style: Democratic leadership style refers to the type of style in
which the person is willing to get a more participative and a big role as compared to the
others in the decision making process (Arends, 2014). So, the same was done by Elon
when in SpaceX, many times the rockets have been damaged and burned, creating huge
loss to him, he still remained dedicated and innovative that he doesn't lose hope and
continued. Elon Musk always takes dream and implement innovative ideas in the
workplace. His idea of solar city, electrical car were amazing. He involves employees in
his planning and give them training which helps in encouraging people. By this way
employees contribute well in his plan

 Great man theory: It states that leaders are born , they are not made. Musk has faced
challenges since his childhood so he knew how to deal with critical situations. That is
why he always took innovative ideas such as introduction of green car etc. Trait theory: It explains that having certain abilities such as intelligence, assertiveness
etc. traits makes the person a good leader. Musk was having these qualities. Innovative
idea of green cars has supported in increasing sales of the company. By introducing solar
city it has become able to provide cheaper cars to customers. Strategic leadership style: In this style three are so any strategies made by the employees
so that they can achieve the success for their business as it is their first priority. This
theory is linked with the contingency theory as in this the situation influence the
leadership (Miner., 2015) . According to above Elon musk is a very contingent person as
he makes the strategy according to the situation as this is the only this whose outcome
decides the future of the business. Leaders can control any conflicting situation because
they have to plan before all the strategies. It is important as well because one should stay
ready for dealing with any possible situation that can occur (Bratton and Gold, 2012).
Elon was implying of all these skills as he managed to work after so much of pressure as
well. Efforts of Elon Musk for future humanity has shown that he was implementing
strategic leadership. He has though unique and he designed drool worthy driving
machines because it was the demand of this era. His strategy has made him a good leader.
Leaders need to take quickly decision to make strategies so that they can work more
effectively in order to achieve their goals and objective. Elon Musk always follow rules
and regulations strictly. He set his vision and makes planning to achieve this goal. As
since childhood he had faced issues thus, he has behaviour of risk management. That is
why he plans activities properly so that no risk arise while conducting the operations. He
was the great example of big vision. He concentrates more on realistic things and that is
why company has allowed him on green innovation.
 Behavioural theory: It explains that leaders always pay attention on behaviour instead of
factors. Musk always communicate with others on the bases of their personality. It looks
at the market condition and accordingly takes decision. It has made him a successful
leader. Elon Musk was the honest person and he was having ability to take dreams. He

knew how to avoid pitfalls. He makes his employees ready in such manner so that
everyone can perform well.
2. Leadership qualities with leadership theories
Leadership qualities are differed as the persons are differed from each other. Qualities of
the leaders decides that how much they are successful in the business as they are the one who
carry forward all the activities of the firm. Some qualities that are linked with the theories are as
follows: Vision: Great leaders have a vision as they can see into the future and analyse all the
factors that are affecting the business in al the way possible so that they can take the
corrective measures on time in order to achieve the goals on time (Gill., 2011). This
quality separates them from the manager as they have the clear vision and trying to
accomplish and are excellent at strategic planning. This quality comes in the trait theory
as this is also about the quality that the leader have in him to lead the team so that they
can achieve what they want in the minimum time without any hindrance. Elon had a
vision because of which he was successful enough in managing and controlling all the
people under him and that too in a proper way. He had a strong vision of reducing issues
of global warming for that he has created greener version of cars. It is the proof of the
fact that even if he had a bad time in school and with his father as well, he decided not to
focus on it and maintaining his focus on his vision that he achieved a huge success in his
life. Even after various damages to the rockets etc., he did not lose his hope and kept his
focus on his vision because of which he achieved this much of success. It is because if the
vision of a person is strong enough, then barriers do not affect any more (Northouse,
2015). Courage: This one of the most important quality that is carried by the leader to attempt
new things Courage is rightly considered the foremost of the virtues as al the others are
depended upon them as they guide the team members that what is to be done in what
ways. Elon musk is a very courageous person as he knows what should be done for
making his firm more successful and for that he needs to takes number of risks according
to the situation occurs. Because of courage and strength only, Elon was able to work for
his firm this much and his hard work remained successful enough. Courage acts as a very

essential element that every leader and person should have because obstacles are a part of
life, and in such cases, courage and power can help in controlling the emotions, thus
managing the situations (Bolden, 2011). Elon Musk was having huge courage, when
every auto mobile firms were manufacturing electric cars, then he took innovative idea
and has introduced green cars. It might be possible that customers may not take interest in
this car version but courage and believe in own self has given success to the Elon Musk.
1. Integrity: Integrity is the quality that makes the leader fearless as every strategic planning
session includes the risk in order to implement them. This quality helps the leaders to
achieve the success for their leaders (Arends, 2014). Elon musk is integrated person as
he takes all the risk for his business and mould the business situations in his favour and it
remained successful enough in achieving the targets and goals. Like in case of Elon only,
integrity plays a very important role because it is not important to show trust and honesty
to others but the person should be honest with self as well. It is important because a
person can cheat anyone but cannot cheat themselves (Pinkerton, 2011). He was the
honest men, he has ability of one man to dream and gain success. He always takes hard
efforts to complete his objectives. Humility: This quality of the leaders refers to their ego as the self-esteem is most
important to maintain the prestige in the company. This quality is all about the higher
level needs so that they can satisfy their ego and make the team work according to them
as they are the leader and all other have to follow their decision. The behavioural theory
includes this as the autocratic leaders are the person who only listen to what he want and
avoid the rest. Elon was humble as well because when he was having a very challenging
relationship with his father, he did not move because of that, he has respect for his father.
But the reason he moved on because of his dreams. So, humbleness can help the person
to achieve anything in life (Northouse, 2015). Humanity was the quality of Musk, he has
taken risk of making green cars to tackle global warming. He has designed drool worthy
driving machines. Strategic planning: This planning is done by the leaders as they follow with the starting
point that is given by this planning. This quality anticipate trends and analyse all the
factors of the competitors in advance. Although Elon was humble, honest but he had a
very good understanding of dealing with situations with his strategic mind. Many times,

he faced quite tough situations like burning of rockets and facing huge loss, but he dealt
with these all situations very patiently and that helped him in achieving targets.
(Armstrong and Taylor, 2014). Elon was not having any fear of loosing something, He
proved through action rather than speaking. Announcement of buying solar-city green
cars were the strategic plans of Musk. By this way he has designed such cars which can
be afforded by consumers easily.
 Focus: This is the quality on concentrating on something that I very important for the
business. Leaders focus on the results as the outcome is important to maintain the
position and efficiency in the tough competition (Bolman and Deal., 2017) . Elon has
been successful enough in maintaining his focus and vision on achieving the targets and
goals. This comes in the power and influence theory as through influencing the team
member’s leaders can bring focus for them in their work as this is the only thing that will
help the firm in achieving its objective (Anderson and Anderson, 2010). The main target
of the company was to increase sales revenues, for that Musk has bought Solarcity
system through which cheaper cars can be produced. It has helped in increasing sales
volume of the entity.
3. Ethical leadership with advantages and disadvantages
Ethical leadership refers to the leadership that is carried by the leaders in order to direct
with respect for ethical benefits. This gives the value that maintains the dignity that is rights hold
by others. This relates to the many subjects such as honesty, consideration. Furthermore, the
ethics are concerned with the reality of an individual and their motives (Renz., 2016). Ethics
maintain discipline as it clearly directs what is to be done in what manner. Elon musk is a leader
that behaves very ethically as he respects others by considering their value and dignity along
with their rights. Elon boosted the morale of his team members so that he can achieve the
objectives along with the appropriateness in all the operations. It is very essential to ensure the
fact that all the processes and procedures are going in a structured and managed way because it
helps in continuing the business functions very smoothly and easy (Pinkerton, 2011). Elon musk
follows this leadership as he wants his work force works very effectively and avoided all the
threats with this efficient work. Elon Musk concentrates more on communication which makes
the person an ethical leader. He understands that all people have unique personality and

communicating ways so Elon Musk always prefer to communicate with them as per their
personalities.
Advantages of ethical leadership Healthier environment of the work place: Ethical leadership can help the leader in
managing the situation in way that all the employees and staff are under control and share
a well interactive bond with each other because if everyone in the work place interacts
with each other, it helps in making the whole environment of the office happier and
healthier, by means of which employees can stay more focused towards achieving the
goals of the company (Bolden, 2011). Musk always gives importance to employees, thus
it helps the person in developing strong relationship with workers. This supports in
creating healthy workpalce environment to Musk.
 Employee’s makes good decisions: An ethical leader can also control the situation in a
way that everyone should stay focused towards the work. Also, along with it the company
should organise various sessions in between so that the employees can relax from the
routine schedule. This is also considered as a better strategy to make employees happy so
that after this, they can focus better on the work (Renz, 2016). Musk discuss issues with
employees, they share their views with the leader. It supports in taking such decisions
through which unnecessary cost can be minimized. Efforts of creating green cars and
buying solar city actions become successful because of contribution of employees.
Disadvantages of ethical leadership Laws : Although there are various advantages of laws but there are some disadvantages
as well as the leaders and the authorities sometimes may have to face the loss because of
it. This is the biggest drawback of the ethical leadership as the leaders are bind with the
laws as they guide the whole team with the ethical policies but the firm is more from the
ethical sense as it is totally based on the practicality that follows federal laws.
 Costly : Ethical leadership can act as quite costly for the company as employees
satisfaction is not easily can be achieved. Implementation of this can be very time
consuming and also, the management has to make use of some resources as well, whether
it would be incentives, increments, holiday packages etc. it is obvious enough that when
the management will make use of these resources, it can act quite costly as well but it can
help in uplifting the standard of the company (Bolden, 2011). As Employees of Musk

believed more on their leader so high trust may create issue of taking wrong decision.
Though Musk has created healthy environment but strict rules create issues for the
employees to work in such environment. It creates tension in the workplace and company
has to hire new employees which increases cost of the firm.
CONCLUSION
From the above report it can be concluded that leadership plays significant role in the
workplace. Elon Musk was having tremendous quality as leader. Adoption of ethical leadership,
honesty has made him a successful leader. Ethical leadership has supported in improving
efficiency level in working and by this way individual has become able to take innovative actions
for improving business performance.

REFERENCE
Books and Journals
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breakthrough results through conscious change leadership. John Wiley & Sons.
Arends, R., 2014. Learning to teach. McGraw-Hill Higher Education.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bolden, R., 2011. Distributed leadership in organizations: A review of theory and research
International Journal of Management Reviews, 13(3) pp.251-269.
Bolman, L.G. and Deal, T.E., 2017. Reframing organizations: Artistry, choice, and leadership.
John Wiley & Sons.Pedler, M. ed., 2011
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Gill, R., 2011. Theory and practice of leadership. Sage.
Hayes, J., 2014. The theory and practice of change management. Palgrave Macmillan.
Miner, J.B., 2015. Organizational behavior 1: Essential theories of motivation and leadership.
Routledge.
Northouse, P.G., 2015. Leadership: Theory and practice. Sage publications.
Pedler, M. ed., 2011. Action learning in practice. Gower Publishing, Ltd..
Pinkerton, E. ed., 2011. Co-operative management of local fisheries: new directions for
improved management and community development. UBC Press.
Renz, D.O., 2016. The Jossey-Bass handbook of nonprofit leadership and management. John
Wiley & Sons.
Online
Leadership and Management, Theory and practice., 2017 [online] available through
<http://smallbusiness.chron.com/theory-practice-leadership-management-styles-
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