Leadership Report: Evaluation of Leadership Styles and Models at Dedeman

Leadership Report

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Evaluation of leadership styled and models ...............................................................................3
Assessment of impact of leadership on organizational culture and diversity management........6
CONCLUSION ...............................................................................................................................9
REFRENCES ................................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Leadership plays an important role in ensuring success of business firms in current
business environment with intense competition. Leadership affects organizational culture as well
as diversity management policies in business firms (Wang and et. al., 2019). Romanian
hypermarket company Dedeman is selected for the present report. Dedeman was founded in the
year 1992 and is currently headquartered in Bacău, Romania. There are 55 stores of Dedeman in
Romania which seel wide range if products including construction, home interior, gardening,
kitchen and decorative appliances. This report aims to evaluate leadership styles and models in
relation to Dedeman. In addition to this impact of leadership style on organizational culture and
diversity management at Dedeman is assessed in this report.
MAIN BODY
Evaluation of leadership styled and models
Application of leadership theories and models in different organizational situations
Leadership theories focus on determining qualities of an effective leader. As stated by
Faye Wattleton “ The Only safe ship in a storm is leadership”, effective leadership not only
directs the company towards continuous success but also helps the company face drastic market
conditions and recover from crisis. Leadership theories are applied to different organizational
situations below:
 Great man theory: This theory states that great leaders are born with certain qualities
which contributes to their effective leadership. Effective leadership is a birthright as per
this theory which cannot be developed by practice as per this theory. Strength of this
theory is that it provides information about essential characteristics of great leaders.
Weakness of this theory is that the statement of birthright associated with leadership
lacks scientific validity (Spasojevic, Lohmann and Scott, 2019).
Workplace conflict situations at Dedeman reduce employee productivity. The great man
theory can be applied in this situation by leaders at Dedeman as natural born leaders with
courage, intuition, charm and intelligence qualities will be able to easily manage employee
disputes and ensure that it doesn't have drastic impact employee productivity.
 Management theory: As per this theory leadership is considered to be a system of
rewards and punishments. Effective leadership favours hierarchy and prioritizes order

over creativity according to this leadership theory. The main strength of this theory is that
it generates result oriented leaders who help businesses attain strategic goals in a timely
manner. Elimination of individuality and creativity from business firms is the main
weakness of this theory (Shen and Joseph, 2021).
This theory can be applied in the organizational situation of change management at
Dedeman. Management theory is results driven which can be used by leaders at Dedeman to
create leaders who ensure acceptance of change by employees and reduce resistance through
rewards and punishments. This will lead to effective change management at the company.
There are different leadership models help in development of powerful leaders who
ensure quick recovery of business firms from criss situations. Leadership models are evaluated
and applied to organizational situations below:
 Charismatic leadership model; This is characteristic based leadership model in which
leaders use their persuasion skills, personal characteristics of charm and enthusiasm to
motivate their subordinates to attain a common goal. The strong emotional appeal of this
leadership model is a strength. Weakness of this model is that it reduces learning
opportunities for employees (Razak, Sarpan and Ramlan, 2018).
During global financial crisis, Charismatic leadership model can be used by leadership of
Dedeman in order to uplift the motivation level of employees and direct the employees towards
attainment of common goal for quick recovery of the firm from drastic financial conditions.
 Ethical leadership model: The main responsibilities of an ethical leader include honesty
empathy and following moral principles. This leadership model is followed by
showcasing appropriate conduct through personal and interpersonal relations. The main
advantage of this leadership model is that it creates harmonious workplace culture. The
primary disadvantage of this model is that it required clarity at all times (Sheehan,
Garavan and Morley, 2020).
The usage of this leadership model will help Dedeman increase sustainability and ensure
effective diversity management.
Impact of leadership styles on organizational performance and business practice
 Authoritarian leadership style: Under this leadership style the power of decision
making is given to the leader and the employees have to follow the instructions of the
leader. This leadership style has negative affect on organizational performance as it