Effective Leadership Styles and Employee Motivation

This assignment discusses the significance of effective leadership styles in achieving organisational goals. It highlights the benefits of adopting a participative leadership style, which encourages employee involvement and motivation. The importance of providing fair rewards and recognition is also emphasized. Furthermore, it stresses the need for organisations to stay focused on their commercial mindset and adapt to changing customer demands.

Project 2
Context of Business
A Report on
<write your topic here>
Word Count:
I declare that this project is all my own work and that I have acknowledged all materials
used from the published or unpublished works of other people. All references have been
duly cited.
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Abstract
This report helps to identify leadership style and its effectiveness within organisation
team- building. The several types of leadership style has been analysed such as autocratic,
democratic, bureaucratic etc. and these styles has been implied by organisation to attain their
goal in a stipulated period of time. The management practice which is applied by organisation
enable them to improve their overall performance and gain competitive advantage.
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Table of Contents
1.Introduction........................................................................................................................................3
1.1Company Background...................................................................................................................4
1.2Rationale.......................................................................................................................................4
2. Literature Review...............................................................................................................................4
2.1 Leadership style...........................................................................................................................5
2.2 Management (Bureaucratic, Autocratic, etc) Practice.................................................................5
2.3 Focus on any 3 from (Motivation and rewards, Groups and Teams, Decision Making, Structure,
Culture)..............................................................................................................................................5
3. Analysis .............................................................................................................................................5
4. Conclusion.........................................................................................................................................6
5. Recommendations.............................................................................................................................7
6. References.........................................................................................................................................8
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1.Introduction
Leadership is an skill which encompasses the ability of an individual to lead or guide
other employees within the organisation. It assist the organisation to achieve their
predetermined goals effectively and efficiently within the specific time period. In context to
H&M, it is a Swedish multinational clothing retail company which is well known for its
fashion clothing for men, women , teenagers and children. It has around 4500 stores which
serves across the globe. This project throw lights on the different types of the leadership style
as well as the various management practices leader should adopt within the organisation to
achieve the goals effectively and efficiently.
Company Background
Hennes & Mauritz (H&M) is a Swedish multinational clothing retail company which
is known for its fast fashion clothing for men, women , teenagers and children. It is the
second largest largest global clothing retailer. It was founded in 1947 and serve all across the
globe Respective company maker continuous improvement in their product ranges according
to the customers demands as well as recent trend prevailing in the market. It also has a online
presence around in 33 countries which makes shopping easy for the customers.
Rationale
The main purpose of selecting the H&M company as it is the largest fashion clothing
company and provides clothing for all age group groups according to customer demands.
Respective company provide high quality products which provides maximum satisfaction to
the customers. It has a strong values such as commercial mindset, simplicity, constant
improvement as well as cost consciousness which helps in continuous profitability and
growth of the company. Company follows matrix organisational design which have full
ownership and operational control. Though it brings decentralisation of authority but it
effectively enhances company's overall operational effectiveness.
2. Literature Review
2.1 Leadership style
As per the views of Emmanuel Ogbonna, 2019, Organisation exist for different
purpose like some are community based company whose main motive is to empower the
community whereas business oriented firms are exist to maximise profit. To achieve their
objectives, leadership style plays a vital role. There are several types of leadership and each
of them has unique role or purpose. However, full range leadership model proposes that the
leadership process is continuum that starts from non-effective leadership approach i.e.
laissez-faire ans moves towards to involving leadership approach i.e. transactional. Finally, it
ends with transformational leadership, a motivating and inspiring leadership style. The
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leadership style of H&M has positive relationship on organisational innovation performance.
Along with this, it moderates the relations between company's creativity capabilities and its
performance. However, transactional leadership has the characteristic of individual
influence, spiritual encouragement and intellectual stimulation (Leadership style,
organizational culture and performance: empirical evidence from UK companies, 2019).
On the other hand, transactional leadership relies more about 'trades' between leader and
follower i.e. exchange of rewards and targets between subordinates and managers. Therefore,
H&M follows autocratic leadership style i.e. decentralisation of authority which enable them
to improve their productivity as their leaders move information very quickly which reduces
delays in productivity. Moreover, leadership has significant, positive or direct effect on H&M
employees satisfaction and enable them to achieve organisational goal in an effective manner.
https://www.researchgate.net/publication/
228769789_Leadership_Style_Organizational_Culture_and_Performance_Empirical_Eviden
ce_from_UK_Companies
2.2 Management (Bureaucratic, Autocratic, etc) Practice
As per the view of Haider N, 2019, In this global competitive environment, effective
leadership style is necessary to reduce the employee attrition rate. From the impressive
leadership styles only, it is possible to attain organisational goal productively. However,
leadership style affect employee performance and productivity (Effect of Leadership Style on
Employee Performance, 2019). Every organisation has various ways to lead or direct and
every leaders has their own style i.e. autocratic, bureaucratic, democratic, laissez-faire etc.
which signifies the capability or ability of leader to manage complex business situations and
it influence company's profitability.
Autocratic leadership is an utmost form of transactional leadership in which leaders
has full control over their employees. IN this style, staff and team members are has little
opportunity to give suggestions or ideas, even if they are best interest of team or company.
On the other hand, democratic leadership which is also refer as participate style i.e. it
involves team members or employees in business decision making process. It provides
motivation or encouragement to employees and enable them to give creative ideas for the
betterment of company.
Bureaucratic leadership is mainly concerned with books of business functions and
they make sure whether employees are following the policies or procedures which is
mentioned in books. However, each leadership style has their own pros and cons and each
leadership is situational. Hence, H&M has impressive and productive management practice
which enable them to provide best opportunities to employees which leads them to attain
high profitability.
https://www.omicsonline.org/open-access/effect-of-leadership-style-on-employee-performance-
2223-5833-1000146.php?aid=58917
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2.3 Focus on any 3 from (Motivation and rewards, Groups and Teams,
Decision Making, Structure, Culture)
As per the views of ,it is very essential for the organisation to hire employees
who are highly dedicated towards their work and contribute towards the growth and
enhancement of the business and able to compete in this highly dynamic environment.
Motivation is highly important for the employees within the company to work effectively and
achieve goals within the time. Motivation refers to the process of stimulating desires and
energy within the employees to make them continuously interest and committed towards the
job. Motivation through reward play s a highly important role within the respective company
and assist employees to increase the output and earns more rewards. Different types of
motivation stimulator which encourages the employees to work effectively are increase in
salary and incentives. Bonus schemes which result employees to work with great dedication
and leads to attainment of profits.
As per the views of , Group is defined as the collection of employees within the
organisation who work with great dedication and mutually works towards the attainment of
the organisational goals. Members within the team work effectively and share a common
purpose which enables them to work effectively without conflicts.
As per the views of , Decision making is considered as an important process
which results in the selection of the of best course of action among the various alternatives
available. It leads the company to attain maximum profitability and able to survive in this
global environment.
3. Analysis
From the above discussed strategies it has been analysed that leadership style has a
crucial role in the business operation of H&M which enable them to accomplish their
organisational goal effectively and efficiently. If the task is well structured and leaders has
good relationship with employees then it will result into high effectiveness on the part of
subordinate. So, leadership is not a pre planned activity but a situational act i.e. capability or
potentiality of leader in handling management conflicts or disputes in order to achieve pre
determined goal. Each company's leaders follows different leadership style i.e. transactional,
transformational, autocratic etc. which bring different consequences as well as positive
impact , which have direct or indirect influence on the attitude or behaviour of employees.
Moreover, teamwork is also an integral component for H&M which provide equal
opportunity to employees which enhance their morale and improves their satisfaction level.
Along with this, it build better and healthy relationship between employee and employer
which enrich company's profitability and gain competitive advantage as it involves helping
other members of team to attain common goal quickly and effectively. However, H&m
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encourage or support teamwork which provide dual benefit to them i.e. a harmonious
environment and effective work. Leadership style, organisational commitment and work
satisfaction are interrelated as it has direct influence on quality of work life and attainment of
pre determined goal. Every organisation requires passionate or dedicated personnel for which
motivation is a important component for encouraging them to contribute their effort towards
company's objective. Apart from this, employees are directly influenced by motivation in
order to satisfy their self esteem, physiological or social safety, satisfaction of psychological
and self – actualization needs. Moreover, management practices also an significant
component for company which improve the overall performance of employees as well as
firm. H&M leadership behaviour has direct influence on trust and satisfaction towards the
organisational culture which the signifies the productive relation between employer and
employee. Furthermore, H&M leaders recognise subordinates effort and they believes in
providing fair reward to them which build or create positive attitude among employees
towards organisation. Therefore, H&M is very dedicated and passionate towards their goal
and they are very attentive in providing better working environment to their employees which
enlarge their profitability and enable them to gain competitive advantage.
4. Conclusion
From the above mentioned project it has been concluded that leaders within the
organisation should adopt to effective leadership style to guide and influence the employees
to work effectively towards the realisation of organisational goals. There are various types of
leadership styles such as autocratic, democratic and participative leadership style which have
their unique purpose, features and characteristics and serve according to the situation in the
company. Along with this company should provide motivation to the employees in the form
of monetary and non monetary benefits such as in the form of increase in salary, bonus and
various other incentives. This makes the employees to work effectively and contribute their
best efforts towards the realisation of company's goals and objectives. It is also been realised
that company should not always follow the autocratic style of leadership, leaders within the
company should also follow participative style of leadership which encourages the employees
to share their decision and suggestion and motivates them to work effectively. Apart from
this it is the responsibility of the managers to provide sufficient training to its employees to
enhance their skills and capabilities to make them perform effectively and thereby increasing
their satisfaction level. This reduces the conflicts within the organisation and thereby reduces
employee turnover.
5. Recommendations
From the above discussed report it has been recommended that leaders within the
organisation should adopt to effective leadership style which potentially influence and inspire
the employees to work effectively. Leaders should have the proper knowledge and capability
to address employees problems effectively and can effectively take decisions which leads to
higher profitability and reduced employee turnover. Moreover managers within the
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organisation should effectively motivate employees and makes them highly dedicated
towards their work. In order to improve company's profitability and efficiency managers
should involve employees in decision making process and their performance can be linked
with the pay which leads to increase in the organisational profit. Moreover leaders within the
company should not always opt to autocratic style of leadership, which will reduce
employees morale and will affect their performance of work. Therefore respective company
should adopt to effective leadership style which creates harmonious relationship at the work
place environment and make the employees to work effectively. Moreover company should
stay focus to its commercial mindset and provide the products to the customers according to
their demands which helps them to survive in this competitive business environment.
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6. References
<At least SIX references>
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