Leadership Theories and Strategies for Maximizing Organizational Potential

This document provides a comprehensive understanding of leadership theories, strategies for maximizing organizational potential, evaluation of motivational theories, and potential leadership styles. It also includes a case study on Kevin Johnson's leadership style and challenges associated with it. The document is suitable for students studying leadership and management courses in colleges and universities.

LEADING
BUSINESS
ORGANISATION

Contents
PART 1............................................................................................................................................1
1 Systematic understanding of leadership theories..........................................................................1
2 Ability to evaluate the contribution in executing mission and vision of organisation for leaders1
3 Ability to apply leadership strategies to maximise organisational potential................................2
4 Ability to evaluate motivational theories within organisational environment for leaders............3
5 Potential leadership style..............................................................................................................3
PART 2............................................................................................................................................4
INTRODUCTION...........................................................................................................................5
MAIN BODY...................................................................................................................................5
Servant Leadership Style........................................................................................................5
Evaluation of Kevin Johnson's leadership style.....................................................................6
Strong Personal Brand............................................................................................................9
Recommendations................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

PART 1
1 Systematic understanding of leadership theories
a. What are the two basic questions that leader ask to themselves?
Ans. First one is what to analyse from the data on how to increase data collection in context of
services and personalisation (Doppelt, 2017). Another one is how to get clear understanding
about internal and external factors for making strategy.
b. What are the two key aspects of leadership?
Ans. The two main aspects of leadership are Emotional intelligence and emotional dissonance.
c. What is leadership theory?
Ans. Leadership theory emphasises on the traits and abilities which can guide individual to
become effective leader.
d. Name two different type of leadership styles that are appropriate for business
environment?
Ans. There are different leadership styles like transformational and democratic leadership which
are suitable in various business environment.
e. Why do aspiring leaders need complete understanding about leadership styles?
Ans. It is important that leaders identify and understand different leadership styles so that it can
work according to the situation of organisation.
2 Ability to evaluate the contribution in executing mission and vision of
organisation for leaders
a. What is organisation mission and vision?
Ans. "Name Is company course of action which indicates define direction for growth.
Missing statements is overall goal of its operation and existence of organisation.
b. What contribution does personal makes in executing mission and vision?
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Employee work to Short - term objectives and goals that are aligned in the directions of
mission and vision of the organisation
c. What contribution does leaders make in executing mission and vision?
leaders direct and motivate employees so that they can work with productivity and
achieving objectives of the organisation.
d. What contribution does stakeholders make in executing the mission and vision?
every activity in the organisation need funds and resources which are provided by the Stake
holders so that employees work with full productivity (Apajalahti, Temmes and Lempiälä, 2018).
e. Why does leaders need to evaluate the contributions?
leaders evaluate contribution so that they can find out the deviations in the performance
and reward efficient employees.
3 Ability to apply leadership strategies to maximise organisational potential
a. What is leadership style?
It is leader’s tools and methods to provide direction, implement plans and motivate
employees in order to achieve organisational objectives.
b. What is change leadership?
This type of leadership shows the ability to influence and motivate employees so that
change management can be introduced. To further enhance the same, leaders could adopt
the change management approach through Kotter’s theory. As per this, a vision is to be
created to facilitate change, following by communication to employees for reducing their
resistance, creation and measurement of change, development of short term wins, along
with inducing a change within the culture of company.
c. What is organisational potential?
it is the capacity of any organisation to achieve the set objective with minimum sources
and time.
d. What is business context?
It is an understanding of the factors which impact business from various Element and
include decision to achieve organisational objectives.
e. Why does leaders need to understand leadership strategies that are applied in different
business context?
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it is important for leaders to communicate vision of the organisation and motivates
employees so that they can work in the direction of attainment vision and mission.
4 Ability to evaluate motivational theories within organisational environment
for leaders
a. What is motivational theory?
It is an activity by with Leader discover different factors which influence employees to
work to words desired outcome
b. What are two categories of motivational theories?
There are two types of motivational theories which are intrinsic and extrinsic theories,
where the former is associated with internal mental processes which act as inducing
factors for motivation. In context of the latter, it emphasises on external rewards like
money and power to gain motivation.
c. What is another term for employee motivation?
Equity theory is a contemporary term which is used in place of employee motivation
d. What is appreciative inquiry technique?
It is a management approach for change management which analyse ongoing activity so
that they perform effectively (Milkovic, Dvorski and Boljuncic, 2018).
e. Why does leaders need to critically evaluate different motivational theories within
specific context of organisation?
It is important function of leader to motivate employees so that they can perform with full
potential that motivational usually helps them to identify factors which can be used as
motivators for workforce. To build upon this, motivational theories of Maslow and
Herzberg could be taken into consideration, where the former is only used towards
enhance job satisfaction based on fulfilling their basic needs that drives their engagement
with the firm. Whereas, the latter divides the job satisfaction into different sources, which
are personal growth and deficiency needs, that could be used for better performance
standards
5 Potential leadership style
a. Define potential leadership style?
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As per the questionnaire, my potential leadership style is Democratic leadership Style.
This is the ones where employees’ participation and points of view are crucial to enhance
decision making (Alade and Windapo, 2019). I tend to appropriately and effectively
ensure that the decisions taken by me are at par with what is expected by subordinates.
b. What are key strengths?
One of the keys skills which I possess is good communication skills. This is because I
have been quite effective in providing instructions to subordinates that clarifies my
expectation and what is to be done by them regarding the job role. In addition, I am an
active listener too, making it effective for me to take employees’ views into account.
Another prominent skill which I possess is decision making. During complex times, I
implement a range of strategies which are crucial for me to derive prominent results for
the company.
c. What are key challenges?
One of the challenges which I face is related to conflict management, that despite of
being a good communicator, I sometimes fumble upon my decision based on ethical
neutrality. Another challenge I face is analytical framework, as I sometimes fail to
calculate effectively, which produces deviated results (Millar, Chen and Waller, 2017).
d. What personal development is needed to develop leadership abilities?
There are different ways by which personal development can help a leader in developing
its leadership abilities some of them are. For instance, one way for me is acquisition of
training through simulations, which would help me enhance my conflict management
abilities. Furthermore, I must also undertake seminars which would allow me to enhance
my calculative skills to by witnessing works of past managers (Bradford, Guzmán and
Trujillo, 2017).
PART 2
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INTRODUCTION
Leading business organisation is term used for identifying challenging for business that
leaders faces and then provides facts so that it can be address effectively. It is accomplished with
the help of vision and motivated workforce by inspirational and encouragement techniques.
Leaders to achieve this use vision and mission statement of company as starting line to lead
whole business and its operations (Doppelt, 2017). Starbucks Corporation is American Coffee
brand and chain started in 1971 and operates approximately more than 30,000 locations at
international level. It provides hot and cold drinks, different types of coffee flavour, Teavana tea,
fresh juices, Frappuccino beverages and snacks. In this management report servant leadership
style and challenges associated with it will be described in context of 21st century. Evaluation
will be done of Kevin Johnson's leaderships style which focuses on improving financial
performance of business along with Ethical challenges. Kevin Johnson's leadership style and
related decisions will also be discussed which helped in making Johnson effective global leader.
Recommendations will be provided at end that will help Johnson to build existing success and
maintain business sustainability and competitive advantage in industry.
MAIN BODY
Servant Leadership Style
This type of leadership is philosophy in which leaders focuses on needs of others and it is
way of behaving that leaders adopted for longer term. It was given by Robert Greeleaf in 1970's
and states that in servant leadership, leader is servant first and then aspire to lead others rather
than focus on giving highest priority in serving need of others. It is timeless concept which states
that leaders have natural feeling that wants to serve others. In this leaders has main aim of
achieving authority instead of power. This concept of leadership embraces the idea of meeting
needs of other individuals which allows communities and companies to work with full
productivity (Nambalirwa Kawuma and Marcovecchio, 2017). Another good example of servant
leadership style is Balfour Beatty Plc is infrastructure group based in UK and deals in
construction and concern support services. Ed Prendergast who is Vice President of Balfour
Beatty Plc is well known leader for delivering high value for customers and leading business
towards continuous growth in Texas. His future vision is to take business forward with
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continuous benefits for workforce and customers with the help of consumer insights and
behaviour and servant leadership.
In-spite of many benefits and advantages there are number of challenges that servant
leadership style come across in volatile, uncertain, complex and ambiguous business
environment. Some of them are as follows:
Decreases Managerial Authority: in this type of leadership managers put employees
needs first which leads to minimise the authority they have over workforce. Whenever there is
need that employees need to increase productivity so that overall business performance can be
improved (Scallon and Sten, 2017). In this case it becomes challenging for managers to become
dominant and excise authority over subordinates.
Workplace Culture: In case of leadership style managers acts more like a counsellor
rather than leader which creates soft reputation against the dominant personality. This can create
challenge for leaders when they want to promote organisations performance. There is need that
at the top and middle level managers contains decisive and power oriented figure rather than
nurturing counsellor.
Less Motivated Employees: Servant leaders acts as problem fixer when they arise for
employees and assist them in completing the task as well. In case when subordinates know that
managers will come on rescue they do not put extra efforts to complete their duty. Instead of this
they sit back and put less efforts in completing their daily process which makes them less
motivated (Kelly, 2019). This also result in poor performance of overall business and lead to
issues for sustainability in this competitive business environment.
Evaluation of Kevin Johnson's leadership style
According to the case study Kevin Johnson's leadership style is effective in taking
Starbucks to new level of growth and development and have sustainable competitive advantage.
In reference to case study, there are some points which evaluates leadership style of Kevin
Johnson:
Take “Non-Defensive” attitude: Kevin Johnson beliefs that it is most important actions to take
because defensiveness leads to anger which in turn worsens the situation more. So it is important
that tone should be set that reflects ability to empathise the pain and harm caused by situation.
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Apologise: Kevin Johnson personally met victims and apologised and taking full responsibility.
As a leader Johnson beliefs that culture related problem starts from top and should be redesign to
implement it till lower level of hierarchical structure. His role is to create model and accept
responsibilities to set standards for being kind to customers with acceptable behaviour of
employees.
Taking Actions: To rectify the wrong done with racial behaviour of employee Starbucks has
closed its 8,000 stores to providing training on racial bias to 1,75,000 workforce. Kevin Johnson
himself is investigating store practices and policy and this shows that these are actionable steps
being a servant leader (6 Leadership Lessons from Kevin Johnson, Starbucks CEO, 2019).
The positive element about the Kevin Johnson's leadership style are as follows:
Big Changes: Kevin Johnson is never afraid of taking big steps when it comes to growth and
development of company. In case of negative behaviour of store employees towards two black
men Johnson took big action of closing 8,000 stores for a day and provide training and
investigate the policies personally so that same is does not repeat in future.
Prioritise Employees: As recorded from former employee of Kevin Johnson, Brad Brooks who
worked with him in Microsoft and Juniper Networks says that Johnson strongly believes that
employees should be encourage so that they actively participate in growth and development of
company.
Technology as Crucial Part of Business: As a leader Kevin Johnson works closely with
marketing and sales teams and focus on technology. Being leader his aim is to create condition
for team where they can innovate and introduce creative product and technologies. This shows
that Johnson identifies technology as essential part of business (3 ways CEO Kevin Johnson’s
leadership style could shape Starbucks, 2019).
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Although servant leadership style of Kevin Johnson has facilitates Starbucks in its growth
and financial profits, there are number of negative elements as well. Some of them are as
follows:
Decisions take longer to frame: In case of servant leadership style, decision that are taken
should benefit all instead of just business and its operations. This makes implementation process
lengthy and slow, this also proves out to be costly from revenue viewpoint (Biraghi Gambetti
and Quigley, 2017). In case of Kevin Johnson it can be seen that decisions taken are according to
favouring employees and customer more which makes it longer to make and implement.
Requires retraining: Leaders and mangers can be effective in implementing servant leadership
style in business environment (Meredith Albright CMA, 2016). If Starbucks wants that each an
every employee should be equally involve in this company has to invest in time and money so
that personnel also retrain in same thinking of Kevin Johnson.
Lesser role of leader: Such leadership style emphasis leader to be more in supporting role and
works for hours for benefit of others (Sendjaya, 2016). This makes role as leader of Kevin
Johnson lesser which may affect the working of business and thus impact its overall productivity.
In case when changes need to be implement leader need to be decisive so that change
management is effective in nature. But in case of servant leadership style this might turn out to
be complex process for leaders to reduce resistance and implement it properly.
There are many different stakeholders that are affected by Starbucks and its operations in
negative and positive manner:
Customers: Starbucks considers their customer as most important stake holders and same is
interested in high qualitative products and services. There is positive impact on consumers as
warm and friendly relations are build and company also fulfil corporate social responsibilities.
Employees: Servant leadership style emphasis mainly on employees by providing flexible
working hours, job security, balanced working environment and higher salary packages. This ha
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positive impact on workforce as their living standards are improved along with they can maintain
healthy life for long life.
Investors: Such stakeholders are interested in financial performance of company so that they get
better return on their investment (Eva and et. al., 2019). Due to servant leadership style of Kevin
Johnson, company is focusing on serving others before considering profits and growth. This
might have negative impact on investors due to lesser returns and profits on amount they have
invested in company.
Government: Starbucks in compile with many rules and regulations at it operates in different
countries and region at international level. Due to servant leadership style of Kevin Johnson,
business is engages fully in completing its social corporate responsibilities by serving
individuals. Thus it has positive impact on government by providing many benefits to
employees, customers and local communities.
Strong Personal Brand
Servant leadership style of Kevin Johnson has many benefits for Starbucks in recent years and
has accelerate its growth as well. He has become personal brand which is also helping company
to gain brand awareness and positioning in international market. Here are some of the positive
impact that Johnson leadership style has on business and its operations, are as follows:
Employee Loyalty: Unlike any other traditional styles, servant leadership mainly focus on
encouraging employees to get equally involved in decision-making process of business
strategies. When personnel function as teams and work towards common goals, a strong loyalty
is built over period of time. A more loyal workforce can help company to achieve numerous
rewards like better retention and optimal productivity which helps business to be cost effective
(Lumpkin and Achen, 2018). In case of servant leadership style of Kevin Johnson feelings of
loyalty among workforce has improved as it lay emphasis on serving staff by providing better
employment opportunities and working conditions.
Stronger Culture: Servant leadership style induces culture of trust and honesty within an
organization so that it becomes stronger and more flexible for employees when there is diversity.
When team are made comfortable by providing two – way communication channel to express
and communicate with management about their concerns. Same will lead to increase in feeling
of empowerment and they will perform their tasks with independence and sincerity. This creates
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relations among teams members of Starbucks and they start to help each other whenever needed
along with provide assistance in case of challenging tasks.
Higher Productivity: When employees of Starbucks leads with their departments heads and
assist them to achieve goals and objectives by working with full abilities. This will helps in
increasing productivity of overall organization with the help of collective efforts of personnel
(Kiker, Scully Callahan and Kiker, 2019). Servant leadership of Kevin Johnson gives employees
adequate freedom and flexibility for continuous learning, exploring and solving challenges in
creative manner. When employees develop sense of job satisfaction at workplace they put more
efforts to achieve productivity in day – to – day activities and feel personal fulfilment of goals
for their career growth.
All the above points clearly shows that servant leadership style of Kevin Johnson has positive
impact on Starbucks and on its operations. This has also helped Johnson to be a personal brand in
international market by leading company on the path of growth and development with
sustainable competitive advantage. All strategies to fulfil corporate social responsibilities has
direct and positive impact on brand image which is also helping Johnson to become a inspiring
leaders for other brands.
Recommendations
Servant leadership style of Kevin Johnson has many advantages and positive impact on
Starbucks and its brand image at global level. Thus there are some areas where company can
focus and have further growth and development in industry with sustainability. Some of the are
as follows:
Mobile Order & Pay: The mobile app of Starbucks has negative feedback about the
hiccups and its implementation in recent quarters. Although it has gained popularity among
customers with the concept of ordering and walk – in to pick the same. There is need app with
updated with technology so that it becomes more user friendly and thus serves customers in
better way. Company can also have smaller stores which are designed with view to accept online
orders and enhance experience of customers. Starbucks considers its mobile app as “digital
flywheel” which has allows company to maintain relationships with consumer by providing
rewards as additional items and coupons.
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International Market: Starbucks needs to focus more on expanding its operations to
untapped market for future growth. China is second economy in world and approximately 1
billion consumers which are capable of accelerating growth rate of business. There is need that
more stores are open so that it can meet demand of consumer and become emblem for
aspirational class for meeting and high – profile gathering. Company is planning to open 500
more outlets in next five years so that growth rate can be enhanced. There are few American
brand which has proven success in market of China as it tea – loving country and Starbucks
needs to design it outlets with larger seating areas. There are many untapped regions as well
where Starbucks can expand its business and its operations (3 Biggest Opportunities for
Starbucks Corporation, 2019).
CONCLUSION
It is concluded from above report that leading business organisations is concern with
identifying challenges of business and finding out solutions so that it can be address effectively.
Servant leadership style lay emphasis on serving other before achieving personal growth. In
context of organisation it prioritise employees and customer benefits first rather than attaining
business goals. Such organisation where leaders have adopted such leadership style are effective
in fulfilling corporate social responsibilities which enhance its brand image as well. Instead of
being effective in business operations there are challenges like lesser role of leader, less
productivity of employees and lenient workplace culture which can affect performance of
organisation. There are different stakeholders like customers, employees, government, etc. which
has positive and negative impact of servant leadership style. This style helps leaders to establish
themselves as personal global brand and inspiring leader due to importance like employee
loyalty, higher productivity and stronger working culture.
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REFERENCES
Books and Journals
Alade, K. and Windapo, A., 2019, July. 4IR Leadership Effectiveness and Practical Implications
for Construction Business Organisations. In Construction Industry Development Board
Postgraduate Research Conference (pp. 62-70). Springer, Cham.
Apajalahti, E. L., Temmes, A. and Lempiälä, T., 2018. Incumbent organisations shaping
emerging technological fields: cases of solar photovoltaic and electric vehicle
charging. Technology Analysis & Strategic Management. 30(1). pp.44-57.
Bradford, H., Guzmán, A. and Trujillo, M. A., 2017. Determinants of successful
internationalisation processes in business schools. Journal of Higher Education Policy
and Management. 39(4). pp.435-452.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Milkovic, M., Dvorski, J. and Boljuncic, V., 2018. INNOVATIVE AND CREATIVE
COMMUNICATION CAPACITY OF BUSINESS ORGANISATIONS IN
COMPLIANCE WITH GLOBALISATION TRENDS. Economic and Social
Development: Book of Proceedings, pp.228-235.
Millar, C. C., Chen, S. and Waller, L., 2017. Leadership, knowledge and people in knowledge-
intensive organisations: implications for HRM theory and practice.
Biraghi, S., Gambetti, R. C. and Quigley, S., 2017. Leadership and Communication.
In Leadership Today (pp. 229-247). Springer, Cham.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Eva, N. and et. al., 2019. Servant leadership: A systematic review and call for future
research. The Leadership Quarterly. 30(1). pp.111-132.
Kelly, R., 2019. Leadership Development and Connections—From Leading Through Structures
to Leading Through Networks. In Constructing Leadership 4.0 (pp. 101-121). Palgrave
Macmillan, Cham.
Kiker, D. S., Scully Callahan, J. and Kiker, M. B., 2019. Exploring the Boundaries of Servant
Leadership: A Meta-Analysis of the Main and Moderating Effects of Servant
Leadership on Behavioral and Affective Outcomes. Journal of Managerial
Issues. 31(2).
Lumpkin, A. and Achen, R. M., 2018. Explicating the Synergies of Self‐Determination Theory,
Ethical Leadership, Servant Leadership, and Emotional Intelligence. Journal of
Leadership Studies. 12(1). pp.6-20.
Meredith Albright CMA, C. P. A., 2016. Servant leadership: Not just buzzwords. Strategic
Finance. 98(4). p.19.
Nambalirwa Kawuma, P. and Marcovecchio, H., 2017. Sustainability-centered business model
innovation: Learning from and insights into how sustainability has affected the business
models of Nespresso and Starbucks.
Scallon, M. and Sten, M. J., 2017. Environmental Positioning for the Future: A Review of 36
Leading Companies in the Pacific Northwest Region of the United States of America.
In Greening the Boardroom (pp. 145-163). Routledge.
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Sendjaya, S., 2016. Personal and organizational excellence through servant leadership. Springer
International Pu.
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6 Leadership Lessons from Kevin Johnson, Starbucks CEO. 2019. [Online]. Available Through:
<https://www.perspectivesltd.com/2018/04/19/6-leadership-lessons-from-kevin-
johnson-starbucks-ceo/>
3 ways CEO Kevin Johnson’s leadership style could shape Starbucks. 2019. [Online]. Available
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starbucks-ceo-kevin-johnson.html>
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