In-Depth Analysis: Leadership Theories and Management Styles (Act 1-4)

This assignment provides a comprehensive overview of leadership theories, management styles, motivation, and decision-making approaches. It begins by classifying leadership theories into personal, behavioral, situational, and modern approaches, further discussing authoritarian, democratic, and liberal management styles, highlighting their respective impacts on employee motivation and organizational effectiveness. The paper explores various motivation theories, including McGregor's XY-theory, Ouchi's theory of Z, Maslow's hierarchy of needs, and Herzberg's two-factor theory. It also delves into theories of work and interpersonal relations, such as exchange theory and symbolic interactionism. Furthermore, the assignment emphasizes the importance of innovation in industrial enterprises, the role of employee involvement, and the benefits of teamwork and continuous learning. Finally, it discusses different decision-making approaches, including centralized, decentralized, behavioral, democratic, and compromise approaches, and their implications for organizational management. This student-contributed document is available on Desklib, a platform offering a range of study tools, past papers, and solved assignments to support students' academic success.

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Activity 1-4
Student’s Name
Professor’s Name
Course Name
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Activity 1 to 4 2
Activity 1
Leadership theories can be classified into personal approaches, behavioral approaches,
situational approaches and modern approaches According to personal theories, leaders are born
with specific traits that can make them lead naturally. These traits include the level of
intelligence and knowledge, attractive appearance, honesty, common sense, initiative, a reliable
socio-economic basis and self-confidence (Northouse, 2012). The second approach is behavioral
approach. According to the behavioral approach to leadership, its effectiveness does not depend
on the personal qualities of the leader, but, first of all, on his behavior and relations with his
subordinates. Early theorists of behaviorism believed that the most effective in modern
organizations will be democratic leaders who are attentive and sensitive to their subordinates.
However, according to a group of authors who summarized the results of different studies, "there
is no one best leadership style. However, none of the first two approaches has been able to
identify a stable relationship between the personal qualities or behavior of the leader and his
effectiveness. This does not mean that they are not important; These are integral elements of the
success of any leader. However, more recent studies have shown that other, situational factors
often play a decisive role in leadership effectiveness: the needs and characteristics of
subordinates, the nature of the task, the requirements of the external environment and the amount
of information available to the leader. This approach is based on the fact that different situations
require not only different organizational structures, but also different ways of leadership,
conditioned by the characteristics of a particular situation. Modern approaches include
charismatic leadership, transformative leadership and supportive leadership (Brooks, 2008 p.
104)

Activity 1 to 4 3
Some management styles motivates, challenge and encourage employees to work hard
while others restrict employees. Authoritarian style for example consider the leader as all-
knowing and expert in everything and employees as deficient of certain skills (Handy, 2009
p.99). This style does not give employees chance to contribute in strategic decisions. The
drawback of this style is that the removal of responsibility from subordinates; the knowledge and
skills of subordinates are used to a small extent; reduces the initiative and creativity of
employees; requires constant monitoring and specifics of tasks; does not facilitate the
participation of subordinates in the performance of tasks. Unlike the authoritarian one, the
democratic style has its roots in the "Y" theory of McGregor and assumes that the employee is
ready to devote his knowledge and energy to the goals he considers his own and, under
appropriate conditions, can responsibly and creatively solve the organization's problems. In a
democratic style, subordinates have the right to participate in decision-making. The head sets the
goal of the action, as a result of which the employees are given the opportunity to act freely in
choosing the ways of realizing these tasks. This creates favorable conditions for expressing one's
own initiative (Nelson and Quick, 2012 p. 109). The implementation of the democratic style of
work increases motivation, and the use of certain pressure, creates a single positive social and
psychological atmosphere and focuses on strengthening personal interest in the work and the
opportunity to participate in the creation of development and implementation of the
organization's goals. Liberal (passive) management style is characterized by low activity,
reluctance and inability of the manager to make any decisions, an attempt to avoid any
innovations, shifting production functions and responsibilities to other managers and units. An
effective management style should be oriented both to the characteristics of the external
environment of the organization and to external indicators that determine the quality of its

Activity 1 to 4 4
functioning. The most effective will be a management style that is able to adapt to changes in the
external environment, subject to orientation to intra-organizational performance indicators.
Changing the external and intra-organizational environment requires a situational approach in
deciding, considering the personal characteristics of the leader and the management team
(Hopkin, 2012).
Motivation for action is a dynamic process of the physiological and psychological plan
that manages the behavior of a person, determining its direction, organization, activity and
stability; man's ability to work through his labor to satisfy his needs. Most theories are designed
to address the needs and gaps in employees. There are theories based on a specific picture of the
employee - these theories are based on a certain image of the worker, his needs and motives.
These include such as "XY-theory" (Douglas McGregor), the theory of "Z" Ouchi. There are also
substantial theories, which analyze the structure of the needs and motivations of the individual
and their manifestation. This is the theory of the hierarchy of needs of A. Maslow, the theory of
needs of K. Alderfer, the theory of the two factors of F. Herzberg. There are also theories that go
beyond the individual and study the impact on motivation of various environmental factors.
Generally, all these theories gives managers idea on what needs should be covered or addressed
in order for employees to feel motivated. In order to manage the current situation, the immediate
leader must flexibly and operatively change the mechanisms of motivation, adjusting to current
conditions and tasks (Wilson, 2010).
Theories of work and interpersonal relations include exchange theory (J. Homans, P.
Blau); the theory of symbolic interactionism (J. Mead, G. Bloomer); theory of impression
management (E. Hoffman); psychoanalytic theory (3. Freud), etc. The exchange theory is based
on the fact that people interact, exchanging information with each other, with some kind of

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benefits. If a person receives the necessary benefits from interaction, then contact continues
(Nelson and Quick, 2012 p. 97). Theory of symbolic interactionism states that people observe,
comprehend each other's intentions, put themselves in the place of another person, adapt their
behavior to expectation. Theory of attraction postulates that people interact with each other if
they experience mutual sympathy, location, attraction.
Activity 2
The organization of innovation activity in industrial enterprises presupposes the constant
integration with the scientific sphere, which is the most important condition for the formation of
a national innovation policy. Particular importance in this issue is the creation of an atmosphere
at enterprises that stimulates the search and development of innovations. The problem of modern
management is directly linked with the problem of developing innovative production potential
and ensuring the growth of the creative potential of workers in industrial enterprises. The success
of the innovation process largely depends on the extent to which its immediate participants -
scientists, engineers, designers, employees - are interested in the rapid and cost-effective
implementation of research and development results in production (Mullins and Christy, 2013
p.67). The labor motivation of employees and the stimulation of their highly productive work or
the innovative development of personnel is of decisive importance. This term is understood as a
continuous process of adapting the personnel potential of the enterprise to the new conditions of
production functioning, to its new current and future tasks. There should be involvement of
employees in decision-making processes and their implementation; improvement of
communications in the conditions of group decision-making; use of complex motivational
systems in the implementation of innovations; application of flexible production and
management structures (Buchanan and Huczynski, 2010)

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Learning is important because of many reasons. Firstly, the introduction of new
technology, technology, the production of modern goods, the growth of communication
opportunities creates the conditions for the liquidation or modification of certain types of work.
In this regard, the necessary qualifications cannot be guaranteed by learning (Robins and Judge,
2012 p. 211). In addition, for the firm, it is more efficient and economical to increase the impact
of already existing employees on the basis of their continuous training than attracting new
employees.
Team work is associated with many benefits. Teamwork reduces stress. Studies have
shown that in enterprises that use teamwork, employees are significantly less exposed to stressful
conditions. Stress itself helps to develop business and this is described in detail in the article, but
it is important to control it (Xenikou and Furnham, 2012 p. 37). Working in a team reduces the
risk. When employees work as a team, the likelihood that the error or problem will go unnoticed
will be greatly reduced. Teamwork contributes to the emergence of better ideas. When every
employee feels involved in the process - the end result of any project is usually better (Alvesson,
2012 p. 31).
In today's difficult economic conditions of managing the gain competition, there is a need
to respond in a timely manner to changes in the environment. Enterprises need to meet the
requirements of consumers, successfully compete in the market, adapt to changes in the external
environment. Changing the requirements of customers for the quality of goods and services, the
growing diversity of new products while reducing the time of its introduction to the market,
require an adequate response from enterprises (Senior and Swailes, 2010 p. 17).
Activity 3

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Organizational culture tools can be used to improve socio-psychological climate in the
team, increasing motivation for work, training, staff development, employee satisfaction with
work, and by changing these indicators, to increase the productivity of the individual worker,
division, organization as a whole. At the same time, by instilling certain norms and values, one
can influence the organizational behavior of employees, forming in them an awareness of the
importance of their work, attitudes to the rational use of working time, readiness to perform their
labor functions qualitatively and make proposals for improving their activities, workplace, etc
(Schein, 2010 p. 97). This, in turn, leads to a reduction in costs and cost savings of the
organization. Within the framework of the enterprise, the following indicators affect it: working
conditions, the organization of the workplace, the system of material and non-material incentives
for work, the existing relationships with colleagues and management, the mode of work and
leisure, an understanding of the importance of its activities, wages.
Activity 4
There are a number of decision-making approaches. The first one is a centralized
approach in which most decisions are made at the management level. The other one is
decentralized. This entails transfer of responsibility for decision making to a lower management
level. This approach protects chief managers from the risk of "drowning" in the small details of
daily operations. On the other hand, behavioral approach to the treatment of decision-making (G.
Simon) is based on the fact that the real goals facing a person are too complicated to be described
with the help of not only quantitative but also qualitative methods (Robins and Judge, 2012 p.
113). The democratic approach is rarely used in organizations, as it leads to the fact that the
voters on each issue are divided into "winners" and "losers" A compromise approach, of course,
is used as a form of a group approach. The focus is on finding out the points of view of a larger

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number of people related to this decision, and then a common opinion is formed from them.
Voting is often used here as a method of finding consensus (King and Lawley 2013 p.79).

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List of References
Alvesson, M., (2012) Understanding Organisational Culture 2nd Edition, Sage Publications Ltd.
Pp. 27-39
Brooks, I., (2008) Organisational Behaviour: Individuals, Groups and Organisation 4th Edition,
Financial Times/ Prentice Hall, pp 102-105.
Buchanan, D and Huczynski, A., (2010) Organizational behaviour 7th Edition, Financial Times/
Prentice Hall
Handy, C., (2009) Gods of Management: The Changing Work of Organisations, Souvenir Press
Ltd, pp 96-101.
Hopkin, P., (2012) Fundamentals of Risk Management: Understanding, Evaluating and
Implementing Effective Risk Management 2nd Edition, Kogan Page
King, D. and Lawley, S., (2013) Organizational Behaviour, OUP Oxford, pp 77-81.
Mullins, L. and Christy, G., (2013) Management and Organisational Behaviour 10th Edition, FT
Publishing International, pp. 65-69.
Nelson, D. L. and Quick, J. C., (2012) ORGB-3 3rd Edition. South-Western College Publishing
pp. 107-110
Nelson, D. L. and Quick, J. C., (2012) Principles of Organizational Behavior: Realities &
Challenges 8th Edition, South-Western College Publishing, pp 95-99.
Northouse, P. G., (2012) Leadership: Theory and Practice 6th Edition, Sage Publications Inc.

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Robins, S. and Judge, T., (2012) Essentials of Organizational Behaviour 11th Edition, Pearson,
pp. 209-217
Schein, E., (2010) Organizational Culture and Leadership 4th Edition, Jossey Bass, pp. 91-101.
Senior, B. and Swailes, S., (2010) Organizational Change 4th Edition, Financial Times/ Prentice
Hall. Pp. 17-49
Wilson, F., (2010) Organizational Behaviour and Work: a critical introduction 3rd Edition, OUP
Oxford
Xenikou, A. and Furnham, A., (2012) Group Dynamics and Organizational Culture: Effective
Work Groups and Organizations, Palgrave Macmillan, pp. 31-43.