An Analysis of Leadership Theories and Their Organizational Effects

This essay delves into the core concepts of leadership theories and their practical implications within organizations. It begins by defining leadership and its significance in nurturing talent and fostering commitment among team members. The essay explores various leadership styles, including relationship theory, contingency theory, situational theory, behavioral theory, participative theory, and management theory, and discusses their respective impacts on teamwork and organizational dynamics. Real-world examples of Tesla and H&M are used to illustrate how different leadership styles, such as transformational and relationship-oriented approaches, are applied in practice. The essay concludes by emphasizing the importance of adopting effective leadership styles to achieve shared objectives and enhance overall organizational performance.

INDIVIDUAL ESSAY

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Effective leader nurture the talent as well as strengthen the commitment of team member
due to which they becomes the centre part of an organisation. The objective of successful leader
is to inspire as well as motivate the group members in order to attain the share objective.
Further, team leader enhance the morale of team by maintaining trust as well as confidence
towards the firm. This essay cover topics like leadership theory and how can it affect team work.
Moreover, discussion is made on application of leadership theory in an organisation.
MAIN BODY
Leadership theory refers to the capability or knowledge of leader that is applied to
enhance the productivity and maintain the effective teamwork within an organisation (Aaker and
Joachimsthaler, 2012). There are multiple types of leadership style which are described below:
The first leadership theory is Relationship theory and in this leader focuses to share a
good bond or relationship with their team members to achieve desirable result for company.
Therefore, such leadership style affect team member due to which they committed as well as
determined for the organisational success. Whereas, within Contingency Theory and as per this
theory one leadership style can not be applicable for all situation due to which successful leader
will adopt best suited style as per the situation. Thus, this leadership style affect team member to
perform their task smooth by keeping the balance between leadership style as well as
circumstances that prevail within the organisation.
Third leadership theory is Situational theory and in this organisation operates in dynamic
situation which keeps on changing due to which it is significant for company to remain flexible.
Thus, the role of leader is to select best course of action which finally helps to enhance the team
member by making desirable decision in favour of organisation (Spillane, 2012). Moreover,
fourth leadership theory is Behavioural theory, this theory emphasize that successful leader are
made by acquiring adequate skill set instead of inborn trait. There are various type of skill which
an effective leader acquire such as conceptual or technical skills. Furthermore, these skill of
leader helps to strengthen the role of team member as they get the direction from leader due to
which they can also inculcate the skills acquired by leader. Furthermore, Participative theory it
is categorised as one of the ideal leadership styles because it contribute the effort of group
member while making decision for company. This helps in enhancing synergy within the team
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member due to which they perform their task collectively (Blanchard, 2015). Therefore, it
increases the productivity and profitability for firm. Additionally, Management theory which
focuses on the team member, role of organisation as well as supervisor of leader. Here, leader
adopt both positive (reward, promotion, appraisal, recognition) and negative (punishment,
demotion, termination) reinforcement technique. This theory affect the role of team member as
they remain encouraged through extrinsic motivated to make their effort in favour of
organisation.
Adoption of suitable leaderships style helps in encouragement or enhancement of an
effective teamwork within an organisation. There are various types of leadership style which
differ from one organisation to another. Thus, among all relationship or transformational
leadership style is one of the most effective style which is adopted by various companies.
Additionally, if firm consider its manpower as an essential resource then even personnel will
make efforts to achieve overall objective of firm.
Tesla is an American company that manufacture electric car, it was launched in 2003 and
is word's first car that have designed premium electric sedan. It recently operates around sixty
one countries form which they have built strong interconnection with various manpower of
organisation. Due to the innovation of electric cars company have reduced the consumption of
natural resources that is fuel (Grint, Jones and Holt, 2016). Thus, it has promoted sustainable
development by protecting the environment from reduction of emission that causes the change in
climate (Transformational Leadership in Action, 2018).
Tesla emphasize on the need, moral as well as value of their employee due to which Elon
Musk is considered as transformational leader. Though the organisation set target for their
employee which they need to fulfil within stipulated time period but while doing that leaders of
Tesla also take care of the need of their employee. Thus, respective company provide job
security, healthy working environment to perform their operations as well as basic amenities this
helped company to sustain their existing employee for long durations. Furthermore, the
employees of Tesla have trust and believe over their leaders even if the situation is unpredictable
this helps the company to overcome any circumstances effectively.
H&M is a multinational clothing industry of UK that offer product various category such
as women, men and kids. It has around four thousand stores which are diversified in
approximately sixty countries. Thus, respective brand always identifying the changing taste and
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requirement of people and accordingly they bring innovative designed which are being preferred
all over the world.
Moreover, it has adopted relationship oriented leadership style as H&M operates in more
than sixty country due to which they have huge manpower. Thus, they form affirmative
relationship with their staff so that they remain connected with organisation for longer duration.
Therefore, company make significant efforts such as provide training and development to the
team member on regular basis as well as offer them suitable remuneration which helps to
enhance the relationship between organisation as well as team member.
CONCLUSION
From the above essay it has been defined that the role of leader helps to creates the
balance within the working area of organisation. They not only direct or supervise the team
member but also understand their viewpoint by considering them as valuable part. Furthermore,
if an organisation adopts relationship oriented leadership style then employee remain satisfied
and work for organisation for longer duration. Therefore, adoption of effective leadership style
helps in fulfilment of share objective by team members of company.
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REFERENCES
Books & Journals
Aaker, D. A. and Joachimsthaler, E., 2012. Brand leadership. Simon and Schuster.
Blanchard, J. M. F., 2015. The people’s republic of China leadership transition and its external
relations: Still searching for definitive answers. Journal of Chinese Political Science.
20(1). pp.1-16.
Grint, K., Jones, O. S. and Holt, C., 2016. What is Leadership. The Routledge Companion to
Leadership, p.3.
Rice, A. K., 2013. Learning for leadership: Interpersonal and intergroup relations. Routledge.
Spillane, J. P., 2012. Distributed leadership (Vol. 4). John Wiley & Sons.
Online
Transformational Leadership in Action, 2018 [Online]. Available through:
<https://sites.psu.edu/leadership/2015/03/26/elon-musk-transformational-leadership-in-
action/>.
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