Importance of Understanding Leadership Theories and Organizational Behaviour for a Leader

This article discusses the importance of understanding leadership theories and organizational behaviour for a leader in an organization. It highlights how these theories can help a leader handle the various factors affecting businesses today and improve their effectiveness in managing the organization.

LEADING BUSINESS
ORGANISATIONS

Table of Contents
Reflective Statement........................................................................................................................1
Importance of Understanding all Leadership Theories and Organizational Behaviour for
Leader..........................................................................................................................................1
Role of Leader and Stakeholder in Making Vision and Vision of Organization.........................1
Importance of Leadership Strategies for and Aspiring Leader....................................................2
Importance of Motivational Theories for Leader.........................................................................2
Potential Leadership Style...........................................................................................................3
Self Evaluation.............................................................................................................................4
INTRODUCTION...........................................................................................................................7
MAIN BODY...................................................................................................................................8
Explain the concept of ‘ethical, authentic and distributed leadership along with the challenges
associated with Dennis Muilenburg.............................................................................................8
Evaluation of the Muilenburg's leadership style and the way he dealt the situation of the e
company’s 737 Max 8 aircraft...................................................................................................10
Recommendation.......................................................................................................................12
CONCLUSION..............................................................................................................................14
PART 3..........................................................................................................................................15
REFERENCES..............................................................................................................................23

Reflective Statement
Importance of Understanding all Leadership Theories and Organizational Behaviour for Leader
Leader is one of the most important part of organization because he takes the whole
responsibility of risk taking and loss of company. Leader need to have proper understanding of
leadership theories and organizational behaviour because these theories and concepts can help
the leader to handle organization in effective way. The business in this days comes with different
factors like volatility, uncertainty, complexity and ambiguity and to deal with these factors leader
should be aware of leadership theories. Leadership theories provide information and guidance to
to manage their work in company (Bolden, 2016). According to me, leadership theories can help
the leader to take action and decision as per the situation. There are different leadership theory
that consist of information of various methods that can be used by leader to make decision and
include employees in decision making process to gain higher satisfactory result. Organizational
behaviour is important to consider because productivity of organization depends on environment
of work place. In my opinion the organization behaviour provide information of people's
behaviour in organization and how it is affecting performance and productivity of company. This
will make leader aware of issues that are reducing the performance of employees in organization.
This is how, knowledge and understanding of various leadership theories and organizational
behaviour can improve effectiveness of leader in organization. For example the system theory
and contingency theory are the best suitable theory that can be used by leader to run organization
successfully. Both theories are about handling different situations in organization and handle
different situations efficiently.
Role of Leader and Stakeholder in Making Vision and Vision of Organization
Leader and stakeholders come together to form an organization. Leader is the person who
decides the vision and mission of organization. This mission and vision of organization are
decided by considering the interest of stakeholders and profit of company. Vision and mission
are created by the leader of company on the base of suggestion of stake holders. Vision
communicates what are the expectation of organization from future and mission are used to
communicate goals of organization to stakeholder to achieve the vision of company in the future.
Leader provide vision to the stakeholder and on the basis of mission of organization created with
contribution of leader and stakeholders (Hammad and Hallinger, 2017). Role of leader is to
provide guidance and motivation to stakeholders to achieve the vision and mission of
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organization. Role of stakeholders is different from leader, they are the people in organization
who decides the way to achieve the vision and mission of company by considering internal and
external factor of organization. That is how leader's role is to provide a target to stakeholders and
role of stake holders is to put their efforts to full fill the targets that are provided by leader. For
example if a better vision and mission provided by leader, this will help the employees and
people of organization to follows those goals and long term vision to be effective at operations.
Importance of Leadership Strategies for and Aspiring Leader
In my view there are different condition and situations faced by leader in business. In
order to keep business successful they need to take various decisions and steps that are
uncommon and strange for business to improve productivity and performance of organization.
For better productivity of company leader use different strategies that are related to employees,
product, technology and various function of company (Conger, 2015). Purpose of
implementation of these strategies is to motivate the people of organization and provide them
enough resources to improve our put of company on output end. Change management is one of
the most used strategy by leaders to increase the productivity of company. In change
management strategy there are different changes are made by leader in the organization structure,
procedure technology and policy to improve operations and procedures of company and its
employees. Leader also need to be aware of leadership strategies because I think this awareness
can provide guidance to leader to act in specific way as per the situation and problem to kept the
losses minimum and run organization without any failure. By selecting best suitable strategy and
decision can help leader to increase the performance of employees and organization with
minimum efforts and resources. There are different strategies can be used by leader to efficiently
run company. Strategies like effective communication, people relation and management will
provide advantage to leader to work effectively.
Importance of Motivational Theories for Leader
Motivation is major factor for organization because performance of employees in
company is depended on their motivation level. It is one of most important duty of leader in
organization. There are various theories of motivation which can be used by leader to boost
motivation among employee in company. Employees engagement is important thing for
company and to keep employees engage in organization for long term they need to be motivated
on the regular basis. Engagement of employees is directly related to performance of company in
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market place. Because I think that it highly motivate employees to give their best in the
organization and it will improve the performance of company. For short term organization can
use different rewards, flexibility in work and incentives to improve the employee motivation but
in long term they need to improve different things in organization like cultUntitled 1ure, work
place environment and employee relation (Gottfredson and Aguinis, 2017). Positive changes in
company will improve satisfaction of worker and it will make them to stay longer in company
and later their experience can be utilized to improve performance of company. Theories like
Herzberg's pyramid of need can be used as theory to motivate the employees and this is
considered as one of best approach to help the employees to feels satisfied in organization.
Leader need to evaluate specific motivational theory to make positive impact on employees
otherwise it can also put negative impact on Boeing.
Potential Leadership Style
1. Tells group members what they are supposed to do. 1 2 3 4 5
2. Acts friendly with members of the group. 1 2 3 4 5
3. Sets standards of performance for group members. 1 2 3 4 5
4. Helps others in the group feel comfortable. 1 2 3 4 5
5. Makes suggestions about how to solve problems. 1 2 3 4 5
6. Responds favourably to suggestions made by others. 1 2 3 4 5
7. Makes his or her perspective clear to others. 1 2 3 4 5
8. Treats others fairly. 1 2 3 4 5
9. Develops a plan of action for the group. 1 2 3 4 5
10. Behaves in a predictable manner toward group
members.
1 2 3 4 5
11. Defines role responsibilities for each group member. 1 2 3 4 5
12. Communicates actively with group members. 1 2 3 4 5
13. Clarifies his or her own role within the group. 1 2 3 4 5
14. Shows concern for the well-being of others. 1 2 3 4 5
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15. Provides a plan for how the work is to be done. 1 2 3 4 5
16. Shows flexibility in making decisions. 1 2 3 4 5
17. Provides criteria for what is expected of the group. 1 2 3 4 5
18. Discloses thoughts and feelings to group members. 1 2 3 4 5
19. Encourages group members to do high-quality work. 1 2 3 4 5
20. Helps group members get along with each other. 1 2 3 4 5
Interpretation:
The task score through this questionnaire is 40 and relationship score is 34. as per this
score it can be state that in supporting employees my position is high range it means I am good at
supporting employees through better task allocation and in relationship my scored is 34 which is
moderately low range which means my relationship is moderate with my subordinates.
Self Evaluation
As per the activity we have made through the questionnaire and feedback I have
evaluated that my leadership style is coaching leadership. Which based on the process where
employees of organization are supported by leadership, and they are also provided with
opportunity to learn new things in organization,
my key strengths are better task allocation, decision-making, problem solving and
monitoring. Most of the challenges I have faced in cooperative working are related to potential
relationship with employees and this make certain gap between employees and me. There are
still some areas where I need to make some development. These developments need to be made
are- people relation, communication, task allocation, time management and team working.
Development in this skills will help me to grow more.
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INTRODUCTION
This is a practical skill that includes the ability of individual to lead or guide people in the
organization. Role of leader is important for organization. Leader is a person who is responsible
for decisions in organization. This report is providing brief of ethical, authentic and distributed
leadership styles and challenges associated with major organization crisis and also linking the
same with the CEO lead the firm. After that the report shows the Importance of different
leadership styles are studied with different practical examples, Various challenges and
difficulties are evaluated on basis of different leadership style. A study of Muilenburg's
leadership style is covered that is based on the 737 max 8 aircraft crash. Leadership style of
person is studied on the basis of the recent interviews. Negative element of leadership style of
Muilenburg are considered in study. After that the Negative impact of aeroplane crash is
analysed form organization and its brand value in market. In the end As per the case study
recommendations are provided to improve the actions of Muilenburg.
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MAIN BODY
Explain the concept of ‘ethical, authentic and distributed leadership along with the challenges
associated with Dennis Muilenburg.
Ethical Leadership: The leadership style which operate upon or directed on the basis of the
ethical belief and also on the dignity and rights of the other. Some of the main characteristics
which is shown in the ethical leadership is Justice, respect, honest, Humane, Focus on team
building, value driven decision making, Initiative, lead from front and value awareness.
It is the leadership in which is generally used by the leader to build the good culture in the team
dynamic (Shapiro and Stefkovich, 2016). This leadership also bring the seance of the value and
the respect among the employee in the team.
For Example: Starbucks the company well known for offering the variety of the coffee variety
to the consumer in the market is one of the biggest example of the ethical leadership as the
Chairmen and the Chief executive of the company Howard Schultz used to use the ethical
leadership style only in the organization to lead the organization. Howard was generally used to
respect the words and suggestion of all the individual of the company and used to find out the
way by which all the individual interest can be taken care of in the organization (Ethical
leadership Example, 2017).
Authentic leadership: Authentic leadership is the leadership approach which looks at building
the good leader's legitimacy through honest relationship with the sub ordinate in the team
dynamic. Some of the characteristics which are seen in the Authentic leadership are positiveness,
truth, trust and openness.
It is the leadership in which leaders used to build the trust among the subordinate and support
them in the difficulty faced by them in achieving the organizational goal (Leroy and et.al., 2015).
The leader used to lead by the example in the Authentic leadership .
For Example: Google is the organization which used to used the Authentic leadership as a
leadership style in leading the organization as the leader in the google used to set up the example
for the subordinate to work on the basis of the continuous innovation in the organization and
also Google is known as building the good trust among the employee so that the employee feel
great in the organization.
Distributed Leadership: Distributive leadership is the leadership style which looks at a
conceptual and analytical approach to understanding how the work of leadership take place in the
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organization. This leadership looks at the situation of the work place in which the work has been
taken place (Gottfredson and Aguinis, 2017). Distributive leadership rather than looking at the
characteristic of the individual looks at the way by which employee engage in the task in the
organization.
For Example: Distributed leadership is the leadership which is used by the Domino's in their
functioning as the company used to serve the different product at the different location the
company used to see the situation of the working rather than the characteristic. Domino's also
used to see the conceptual and analytical approach before taking any decision in the organization
(Shapiro and Stefkovich, 2016).
Challenges and Difficulties in Practising the Leadership
Ethical Leadership
Employee Support: The biggest challenge which is faced in the Ethical leadership is that it
requires all the employee to be on the same page in the team, In the case of Boeing it was
defended as employee were happy with the organization .
Leader Centred style: The other challenge which is faced by the Ethical leadership is that the
style demands the huge efforts from the leader side to influence the work of the other employee
in the team as whole leadership style used to centred around the influence power of leader.
Dennis was having that capability to lead and influence the work (Amanchukwu, Stanley and
Ololube, 2015).
Authentic Leadership
Trust Building: The biggest challenge which is faced in this leadership style is to understand all
the Employee and building the good trust factor in them as all the employee used to belong to the
different culture and the need and requirement of all the employee are different from each other.
Leader Skill: The other big challenge which is faced in this leadership style the leader used to
lead from the front and the employee used to follow the leader (Amanchukwu, Stanley and
Ololube, 2015). So it sometimes get difficult for the employee to follow the same as it is not
possible that the skill or knowledge possess by the Leader is possess by all which creates the
situation of the uncertainty among the employee of the team. Dennis was having that capability
to lead by example.
Distributed Leadership: Generally the challenges which are faced in the Distributed leadership
is that the decision making in the leadership used to be slow down as there are the many opinion
and the aspect are overlook before coming or finding the decision for the issue. This is the same
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problem with the Boeing also as they have slow down the decision regarding the engineer
suggestion.
The other big challenge which is faced in the Distributed leadership is that the employee
needs and the wants is sometime is not looked in the leadership style which creates the
uncertainty among the employee in the organization. This is not the case in the Boeing
(Gottfredson and Aguinis, 2017)..
Evaluation of the Muilenburg's leadership style and the way he dealt the situation of the e
company’s 737 Max 8 aircraft.
Leadership style Used
Muilenburg's is using the Ethical leadership in the organization to lead the work of the
organization as all the decision which are taking place in the organization is being taken on the
basis of the ethics of the organization. The company has shown the many characteristics of the
ethical leadership as they are honestly accepting the fault, they are taking the initiative to
improve the MCAS. The company is also respecting and showing the sympathy to the relatives
and family of the individual who were affected due to the accident. The company has shown the
respect to the employee by saying that “Our team is determined to keep improving on the safety
in partnership with the global aerospace industry and broader community”. This show the
Appreciation technique used by the Muilenburg's.
Benefits
Ethical leadership style is helping the Muilenburg's in many ways as the Ethical
leadership style has helped the organization in keeping and maintaining the good workforce for
the company. It has also helped the company in following the law of the country in which the
organization in dealing, that's the big reason how company is able to maintain the good name of
the company (Shapiro and Stefkovich, 2016). The biggest benefit which has brought by the
leadership is that the company is able to maintain the good working culture in the organization.
Another benefit which is brought by the Muilenburg's leadership was the experince as 34 year
technical managerial leadership and also he was passionate enough which has eventually helped
the company in improving the decision making in the organization.
Dis benefits
Muilenburg's has seen many disadvantage also of using the Ethical Leadership as it has
proved that using this leadership has increased the cost for the company as this style ask the
special attention toward developing, implementing, and maintaining. It has also hampers the
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company chance of innovating the thing for the future use as this leadership never looks at that
prospect of the innovation for any sort of the company. Another drawback which was brought by
the Muilenburg's leadership style was that the leader was more driven toward the reward and the
organizational profit rather than improving the operation of the business. As after several of the
warning also Mulienburg's has not invested in the project to improve Max 737 of organization.
(Amanchukwu, Stanley and Ololube, 2015).
Way Dennis Muilenburg has dealt with the Situation
Dennis Muilenburg has dealt with the crises very comfortably by understanding the
reason of the accident by conducting the report about accident which has looked at each and
every aspect of the accident and the reason behind it. Dennis has also cleared all the stakeholder
about what was the reason behind happening and also cleared that the team will be taking the
step to avoid the same in the and will give the same result as in the past. Dennis has shown the
characteristics like patience, initiative and the openness. This accident has also affected the
personal brand of the Dennis as it was found that the engineer has warned the team about the
same in the past also but the Dennis and the team has overlooked the same and that;s the
Unethical way to dealt with the suggestion of the employee and has affected the personal brand
as a global leader. At the same time this has also created the criticism in about the company and
company was not able to level the criticism as by the help of this technique Boeing was not
having any backup plan to defend the company as in ethics leadership it does not give room to
the backup plan at the time when many commentators indicate the organisation is not accepting
blame for the incidents, or dealing with victims families fairly and openly. He was retained for
the position of CEO because the approaches used by him in the end were efficient and good to
avoid such problems later this implematation of different actions help him to stay as CEO of
company.
Stakeholder view point
Employee and competitor are the two stakeholder which will be seeing this way of
dealing in the positive way as Dennis has supported and trusted the employee for developing the
best services again. Competitor will also see it in the positive way as Dennis has honestly
accepted that it was the technical fault which has proved the reason for accident so the
competitor can take the competitive advantage by providing best service. Shareholder and owner
are the stake holder will see this in the negative way as it will creates the wrong goodwill of the
company in the market which will hurts the financial position of the shareholder and the owner.
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As engineer has warned the company in past also it will affect the most at the goodwill side as it
was the company fault to not looked at that (Hoch, and et.al., 2018). The big reason behind the
stakeholder will be having the different view is that the internal stakeholder was saved by the
Dennis in the statement and also internal stakeholder are not having the accountably but the
outside Stakeholder are accountable for the function of the organization.
Reflection
In my thought Dennis should stay in the company and should continuously make the
effort to improve the brand of the company in front of the market as he is the one who is having
the proper knowledge of the function it will be easy for Dennis to lead the company in different
situation.
Recommendation
According to different issues has been evaluated which are need to improve in the Dennis
Muilenburg. There are three skills can improve the leadership of organization that are
accountability, delegation & empowerment and empathy. Dennis Muilenburg lacking of these
skills. Accountability one of the most important skill of a leader because it provide freeness to
employees to perform their work in organization. There are different risks in action and
operation of organization. Many times company face different troubles in conducting business.
This ability of leader provide support to employees (Grint and et.al., 2016). For example
engineers have told this issue of technical failure of technology to the leader of company. To
keep the operation of flights continuous and save the capital of research and technical
development leader has avoided their request to replace the faulty parts from the aircraft.
This leadership style used by Dennis Muilenburg is not good for the image of
organization and also it can demotivate the employees. Company leader need to change his
leadership style to improve the performance of both employees and organization. It is duty and
responsibility to here the employees and their suggestion to solve different problems with in the
organization. Dennis Muilenburg can use democratic or transformative leadership style to avoid
this kind of situation in company. In this case leader has avoided the suggestion of technical
team and the same technological problem was reason of plane crash. In the democratic style
leader of organization use the participative approach to make different changes in organization.
This is one of the best approach for decision making in organization. This participative action of
employees and leader will provide more creative solution and suggestion to company for specific
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problem that organization is currently facing related to decrease in brand value in market place
due to recent accident.
To solve this issue of reducing brand value company leader can ask its employees to
provide different suggestion to solve market positioning issue. This will provide opportunity to
leader to make effective change in the procedure in marketing and operation of company to
rebuild the brand value in target market (Conger, 2015). Also leader of company can use
transformational leadership style to improve performance of organization. There are four types
of transformational leadership styles that can guide leader in right way to take respective
decision in organization.
The individualized consideration is a process where leader of company consider the
suggestion of each employee who is part of company delegation which is assigned to take
respective decision on current issue. The intellectual Stimulation is also a suitable approach to
consider the role of employee in decision taking for brand image of company (Antonakis and
Day, 2017). In this method leader of company check the applicability of employee suggestion
for company procedure. Inspirational motivation is also good option for Dennis Muilenburg to
learn. Because through this approach he can encourage employees of organization to perform
better work for company. It is important for leader to present an role model in front of employees
to encourage them. Dennis Muilenburg can set an example by making change in his leadership
style. This is how leader of company can improve individual skills. The last type of
transformational leadership is idealized influence. Previously employees were not considered
while they have complaint about the technological defect in some parts of plane. This issue can
be resolve by using inspirational leadership.
Openness is one of the most important quality of a leader. By learning this skill Dennis
Muilenburg can overcome the issue with his leadership (Priest and Gass, 2017). This will enable
him to take ideas from employees and subordinates to improve the efficiency of company
operations. This will also help leader to be more creative and innovative in taking decision for
organization. This is how leader can get different ideas at same time and this will provide more
option to individual person to select one of the best method of way to implement new changes in
organization and minimise the troubles that are result of less creativity. The agreeableness skill
also need to be developed inn Dennis Muilenburg because this skill will allow him to accept the
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suggestion which came from the subordinates (Western, 2019). Agreeableness will help him to
avoid the situation like before. This will reduce the chances of error in operation of organization.
There are some personal development need to be made in the personality of CEO. The
recommendations made and suggested for him are some basic requirements of leaders
personality that can help him to develop better understanding with company employees. The
careless behaviour of leader can cause serious problem to company and its reputation. By
following recommendation individual person can improve their leadership skills that can help
him to grow more. This is how particular development in person behaviour can help the person.
1. Using learning approach in organization leader can better understand the challenges that
are commonly faced by employees.
2. By setting examples, leader can inspire other people to perform better.
3. High priority on the conflicts can reduce the problems in leading organization.
4. Become listener can help the person to avoid many problems.
This is how different skills, qualities and nature change can help a leader to support their
organization in the market place. Reputation of company can also be improved by making
change in leadership style of company leader.
CONCLUSION
Importance of effective leadership is concluded in study. How the understanding of
leadership qualities and theories can improve the performance of leader in organization.
Importance of leader and stakeholder in creation of vision and mission for company also has
been analysed in the report. Different leadership strategies has been evaluated to find the best
strategy that can be used by individual person to make change in organization. The case study of
Dennis Muilenburg has been studied to analyse how weakness and wrong decision can cause
damage to the name and brand value of particular company. After going through case study it
can be said that the leader should stay with the company as he is the one who is better having the
idea about the situation rather than the one who will come in as new recruit.
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PART 3
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REFERENCES
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Amanchukwu, R. N., Stanley, G. J. and Ololube, N. P., 2015. A review of leadership theories,
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Conger, J., 2015. Charismatic leadership. Wiley encyclopedia of management, pp.1-2.
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Shapiro, J. P. and Stefkovich, J. A., 2016. Ethical leadership and decision making in education:
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