LEADERSHIP 2: Historical Development of Management and Leadership

This report delves into the historical evolution of leadership and management, tracing its development from the early 20th century to contemporary practices. It examines the shift from scientific management to various leadership theories, including the Great Man and trait theories, and highli...Read More

Histrocial development of MANAGAEMENT AND LEADERSHIP
STUDENT DETAILS
STUDENT DETAILS

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Table of Contents
Introduction................................................................................................................................2
Historical perspective of leadership and management...............................................................3
Leadership and management theories that are incorporating in Woolworths Group and ASDA
Group..........................................................................................................................................4
Styles of leadership....................................................................................................................4
Conclusion..................................................................................................................................6
References..................................................................................................................................7

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Introduction
Since the last 30 years, leadership has become a fashionable context in the history of
management. In this span of this time, various authors and researchers have concluded that
leadership and management are not the same because both solve problems differently. In
simple words, authors have compared the historical form of leadership and management, they
figure out that management provides guidelines to plan, organize and establish effective
coordination (Western, 2019). On the other hand, different styles of leadership are adopted
for inspiring and motivating. For this report, two organization are selected from the retail
industry, through the operations of the organization there will be a discussion about the
norms of leadership and management. Woolworths Group and ASDA are two selected
organizations. In this report, there will be a discussion about the historical development of
management and leadership in these two contrasting organizations.

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Historical perspective of leadership and management
In the early 20th century, Frederick Winslow Taylor had organized the practice of scientific
management. According to me, these are not the theories of leadership but these scientific
management frameworks have transformed the ways in which managers interact with their
employees and handle their assign department (Antonakis and Day, 2017). After that
researcher's study and conduct research about scientific management and they have obtained
results that there is one form of leadership. Apart from this, from the historical context,
management is an old running concept and leadership is driven from the management context
in the early 20th century (Ferraro, 2016).
In the early 20th century, leadership was analyses through Great Man and trait theory. As
Great Man hypothesis was the part of the leadership that defines that leaders are born, not
made. Trait theory was the part of the Great Man theory, which proposes that men with in-
born leadership characteristics can be a successful leader. As time passes, various researchers
were conducted and it is concluded that leaders are not born, leaders can be made with
effective knowledge and experiences (Dutot, 2017). In 1974, RM. Stogdill identified various
characteristic of leadership that needs to be studied in order to accomplish organizational
goals in an effective and efficient way such as Vigour and persistence (Gablas, Ruzicky and
Ondrouchova, 2018).
Leadership and management theories that are incorporating in Woolworths Group and
ASDA Group
CEO. Bradford Banducci – Woolworths incorporates the transformational theory of
leadership. Through the applications of this theory, CEO Banducci believes in working with
their team by identifying the changes they need. He creates goals for his organization and
then makes a list of characteristics and resources which need to accomplish this goal

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(Theguardian.com, 2019). While utilizing this hypothesis, CEO. Banducci also incorporates
four major elements of this theory such as Individualized Consideration, Intellectual
Stimulation, Inspirational Motivation and Idealized Influence. In 2018, according to the
annual reports of the company, Woolworths has increased the first half of the profit by 37.6%
in the market of the UK. While in the year 2016, the company posted a loss of $1.23billion at
the global level (Theguardian.com, 2019).
On the other hand, CEO. Sean Clarke – ASDA incorporates Henri Fayol’s administrative
management theory. Through the application of this hypothesis, CEO. Clarke believes in the
division of work, equity, initiative, discipline, etc. This hypothesis guides to adopt a rational
way of designing the organizational culture as a whole. In the year 2019, the group posted an
operating profit of €803.2m with a year on year increase of 9.2%. Apart from this, ASDA
also posted the net cash flow from operating activities was €1291.1million
(Corporate.asda.com, 2019).
Styles of leadership
In the early 20th century, there were only two hypotheses of leadership Great Man theory and
trait theory, which describes that leaders are born with leadership characteristics that form
their leadership style. As time passes, various researchers and authors have figured out 8 most
common leadership styles which can be master by anyone through knowledge and their
experiences (Salehi and Baboli, 2017). Since the 20th century, leadership evolved and
researchers figure out these 8 common leadership styles:
 Democratic leadership: In this, leaders incorporate design based upon the opinion of
their team members. From the historical context, it is knowns as the most effective
form of leadership because it allows even lower-level employees to participate in
management decision making.

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 Autocratic leadership: This is inverse of democratic leadership, under this leader
makes a decision by his/her own experience and knowledge, then-leader implements
the decision on his/her team members. After that leader works with his/her team to
accomplish the goals.
 Laissez-Faire leadership: This is the least intrusive form of leadership. Under this,
leaders put his/her faith into team members and believe that team members will
complete the task anyhow. If the team needs any resources and guidelines then they
can approach their leader (Western, 2019).
 Transactional leadership: This style is on reward-based as leaders or managers reward
their team for completing a prescribed task in an effective and efficient way possible
(Antonakis and Day, 2017).
 Coach-Style leadership: As the name suggests, leaders provide coaching to their
employees in the training and development session. Leaders also teach strategies for
completing the set of tasks.
 Strategic leadership: Under this leadership style, leaders support multiple layers of the
company's employees at once. It set the intersection among the company's main
operations and its growth opportunities with immediate direction.
 Transformational leadership: This highly encourages a form of leadership under
which the leader encourages their teammates to achieve more (Dutot, 2017).
 Bureaucratic leadership: In this, leaders establish a set of defines rules which is should
be followed by their team members.
Conclusion
In this report, it is concluded that the concept of leadership arises in the early 20th century. At
that time leadership based upon the observation that leaders are born not made. As time
passes, many authors and researchers have concluded that anyone can become a successful

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leader if they have knowledge and experience. Apart from this, in this report, it is also
concluded that the CEO. Banducci incorporates the transformational theory of leadership and
CEO. Clarke incorporates Henri Fayol’s administrative management theory. Moreover, in
this report 8 most common leadership styles are also discussed.

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References
Antonakis, J. and Day, D.V. (2017) The nature of leadership. California: Sage publications.
Corporate.asda.com. (2019) Asda CEO Roger Burnley reminds colleagues that they must
'prioritize what will make a difference to customers' in delivering the strategy. [Online].
Available at: https://corporate.asda.com/newsroom/2019/05/15/asda-ceo-roger-burnley-
reminds-colleagues-that-they-must-prioritise-what-will-make-a-difference-to-customers-in-
delivering-strategy [Accessed on: 30th January, 2020].
Dutot, V. (2017) Exploring the double influence of CEOs’ management style on the
development of SMEs’ corporate reputation. Journal of Small Business &
Entrepreneurship, 29(5), pp.351-374.
Ferraro, S. (2016) Frederick Taylor’s other Principles. International Journal of Business and
Social Science, 7(11), pp.24-27.
Gablas, B., Ruzicky, E. and Ondrouchova, M. (2018) The Change in Management Style
during then Course of a Project from the Classical to the Agile Approach. Journal of
Competitiveness, 10(4), pp.38-53.
Salehi, M. and Baboli, M.B. (2017) The relationship between work ethics and management
style with job satisfaction Employees University. Bioethics Journal, 7(23), pp.29-38.
Theguardian.com. (2019) Woolworths first-half profit soars 38% to $969m. [Online].
Available at: https://www.theguardian.com/business/2018/feb/23/woolworths-first-half-
profit-soars-38-to-969m [Accessed on: 30th January, 2020].
Western, S. (2019) Leadership: A critical text. California: SAGE Publications Limited.