Leadership and Management

Leadership and
Management

Leadership and Management 1
Course Work-1
Introduction
There are several theories available for leadership. An organization has access to limited
resources- natural resources, human resources, financial resources, technical resources etc. Thus,
there is a need of an effective leader who can manage the resources well and create maximum
value for the stakeholders. Every organization wants to maximize its profits and stay ahead of its
competitors. Effective leadership can help to achieve these organizational goals (Emira, 2013).
Extraversion, agreeableness, conscientiousness and openness to experience are some personality
traits that are positively related to leadership qualities. According to the trait theory, these traits
influence the management capabilities of an individual. Extraversion is considered as the ability
to interact with others in an impressive manner. Managers/ leaders that possess this quality are
very confident and energetic (Emira, 2013).
They have an assertive personality and can easily influence others. According to experts,
agreeableness is a quality that makes the manager/ leader cooperative and helpful. Business
leaders with this trait can be approached for discussing organizational concerns. The
subordinates can easily share their professional problems with leaders possessing this trait
(Mahajan, 2011). Leaders with conscientiousness are considered to be more organized and
disciplined. These leaders are vigilant and prepare detailed business strategies. This trait is
associated with successful global leaders. They have a planned approach towards the attainment
of goals.

Leadership and Management 2
Leadership competencies and skills
In a large organization, planning is required in different aspects of business like production
planning, investment planning, human resource planning, inventory planning, distribution
planning, marketing communication planning (Mahajan, 2011). According to the trait theory,
there are some traits that are common among successful leaders: likable, integrity, ability to
inspire, intelligence, excellent communication skills (Mahajan, 2011).
Following are the core competencies and skills possessed by successful leaders in different parts
of the world:
Foster communication- It is important to establish a two-way communication in an organization.
Effective leaders share information with their subordinates regarding the mission, performance
criteria, time schedules, uncertainties etc. The subordinates should be able to communicate their
problems and grievances (Talbot, 2010).
Integrity- An effective leader always demonstrates work ethics. It is important to define a code of
conduct and ethical guidelines for the subordinates. All the business operations should be
performed with honesty. There should be a transparent business environment. There should be
zero tolerance for an ethical violation (Talbot, 2010). This will motivate the subordinates to
follow moral values. Fair and straightforward are admired by the subordinates. They do not take
credit for the efforts made by other people and they are even ready to accept their mistakes.
Openness to experience- A successful leader is always ready to challenge the pre-conceived
notions. He is ready to adopt new ideas that can be profitable for the organization (Giapponi,

Leadership and Management 3
2013). An effective leader is open to unconventional solutions that can be beneficial for the
business.
Creativity- Innovation helps in gaining competitive advantage. In order to exploit the available
business opportunities, leaders are ready to challenge the status quo. They want to create value
for the consumers. New and creativity ideas help in dealing with uncertainties (Giapponi, 2013).
Leaders promote out-of-the-box thinking and offer something unique to clients.
Trust- It is an important aspect of relationship-based leadership. It is important for the
subordinates to trust their leader and vice-versa. Due to extensive competition in the
marketplace, it is important for the organization to win the trust of stakeholders and shareholders.
This helps to acquire higher market share and maintain a positive brand image (Giapponi, 2013).
Flexibility- Every project has its distinct problems. Thus, it is not possible to use the same course
of action for every challenge. It is not always possible to follow the routine policies and
procedures (Giapponi, 2013). An effective leader is one who is ready to adopt new approaches
towards a problem. The solution depends upon various situational factors.
According to the contingency theory, leadership style depends on the situation. This is the most
appropriate leadership theory in the context of large organizations. A leader should analyse the
internal and external business environment before deciding the course of action. According to
this theory, different situations require different leadership styles. For example, a manager
working in a production department will prove to be successful if he adopts task-oriented
leadership style rather than adopting people-oriented leadership style (Southard, 2016). In the
production department, it is important to complete every task in the given time span.