MBA STRM-042: Critical Literature Review of Leadership and Strategy

This MBA assignment presents a critical literature review of leadership and strategic management in the 21st century. It discusses various leadership theories, including trait, behavioral, participative, situational, contingency, transactional, and transformational theories, highlighting the importance of vision, trust, and employee motivation. The assignment analyzes the leadership story of Andrea Jung, former CEO of Avon, as an example of transformational and participative leadership. It further reflects on personal leadership development, emphasizing self-awareness, ethical practices, team building, and the integration of life and work. The review also touches upon ethical considerations, such as corruption charges and corporate social responsibility, stressing the importance of strategic management in ensuring business effectiveness. Desklib provides this assignment as a resource for students studying leadership and strategy.

Running Head: LEADERSHIP AND STRATEGIC MANAGEMENT 0
Leadership in the 21st century and strategic development of organisations

LEADERSHIP AND STRATEGIC MANAGEMENT 1
Table of Contents
Introduction................................................................................................................................3
Over a period of time, a number of theories have evolved........................................................3
The two main components of a transformational leader are to develop a vision and sell the
vision..........................................................................................................................................5
Leader and her leadership story.................................................................................................6
Discussion on my leadership......................................................................................................7
Conclusion..................................................................................................................................9
References................................................................................................................................10

LEADERSHIP AND STRATEGIC MANAGEMENT 2
Introduction
Efficient leadership is very important for any business operating in the 21st century. It is also
not confined to organization and business firms but also covers the area of government,
politics, religion and education (Renzulli, 2012). In an organization, the role of business
leaders is to strategically define the goals and vision of the company and ensure that is should
be followed in the same manner to get higher level of success.
The leader in 21st century are more focused towards power than trust and in most of the cases,
organization gets the path of failure due to the selection of wrong leader and giving them
much power than they deserved. Therefore, trust is a crucial element, which needs to be
incorporated in the leaders (Schaubroeck, Lam and Peng, 2011). In addition, to recognize
what kind of leader must be suitable in this scenario, it is necessary to get the exact definition
of the leader and its related function.
In the betterment of the organization, the leader performs the process of directing and
organizing a group of employees. The role of leader is not confined to just leading team but
also to inspire and motivate the employees for achieving the goals and objective of an
organization in an effective manner (Zhang, Wang and Shi, 2012). In this 21st century, the
major task of leader includes realization of oneself, communication of vision to all the
individuals and employees, build trust in them for the achievement of that vision and making
efforts with full leadership potential.
Over a period of time, a number of theories have
evolved
 Trait Theory – This theory is used to predict leadership effectiveness and it is based
on the characteristics of various leaders. According to this theory, a combination of
relevant set of skills and traits can give rise to the leader (Colbert, Judge, Choi and
Wang, 2012). The important traits that leader must possess are situation flexibility,
reserved towards societal environment, cooperative, dominant to motivate and inspire

LEADERSHIP AND STRATEGIC MANAGEMENT 3
others, determinant towards the quality of work and show responsibility towards the
work assigned.
 Some of the skills that leader must possess are being creative, intelligent and clever,
capability of innovation, diplomatic, organizing and directing ability, socially
competent, and fluent conversant.
 Behavioural theory – According to this theory, leaders are recognized by the work
they performed and not by born with certain traits or skills. If a person has the ability
to learn things and quality of defining, it can make transform into an effective leader.
 Participative leadership – In participative leadership, while taking decision relation
to an achievement of the objective, it is important to consider all the necessary
feedback from the fellow employees and then the decision needs to be formulated
(Huang, Iun, Liu and Gong, 2010). This theory states that an autocratic decision taken
by the leader will never be effective. Also a leader needs to focus that he could not
ignore his subordinates while listening to opinion and not considering it.
Participative leadership also have three styles defined by Lewin’s –
 Autocratic style – Taking of decision by the leader without consulting with the
subordinates. The reason may be that opinions made by the subordinates may
have no effect on the decision-making.
 Democratic style – In this style, leaders involve their fellow employees in the
decision making process but the final decision needs to be taken by the leader
only. Sometimes, this style also leads to a problem when the leader gets
various range of opinions and this cause difficulty in reaching on a final
decision.
 Laissez-faire style – This style imposed the restriction of a leader in the
process of decision-making. This style can be seen when the employees make
their own decisions and also there is not any requirement of the central
coordination (Skogstad et al, 2007).
 Situational leadership – In situational leadership, an effective leader must align its
business objective with the social environment and other situational aspects. It

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includes three forces relating to situation, follower and leader. This leadership also
consider being variable leadership style.
 Contingency leadership – Contingent leader are those who take decision by
considering various contingent and situational factors.
 Transactional theory – In this theory, the transactional leader execute his
subordinate in an activity exchange regime. Employees can be encouraged with the
help of rewards and recognition (McCleskey, 2014). Moreover, a transactional leader
must frame structure of work to his subordinates.
 Transformational theory – According to this theory, leaders motivate their
subordinates to change their expectation and perception towards the work and
objective.
The two main components of a transformational leader
are to develop a vision and sell the vision
The former chairman and CEO of Starbucks, Howard Schultz try to initiate a microlending
programme in association with Community Development Financial Institution. In USA, there
was a time when the situation of unemployment is prevailing and small businessman could
not able to get credit card. However, Schultz convinces the American citizen to participate in
the donation campaign, which would be lent out to small businessmen who would ultimately
produce employment prospects. The worth of lending generated by this program was about
$350 million and creates jobs. With the help of Starbucks branch, his employees and
customers, Schultz did this. This proved to be an example of participatory leadership where
the collaboration is made with all individuals in order to achieve a common objective.
Schultz also represents the role of a situational leader who made it possible while the bank
and government failed to do so.
There are also five sources of power formulated by French and Raven –
 Positional Power – It is also divided into three types of power i.e., Reward, coercive
and legitimate power (Elias, 2008)
 Personal Power – It is also characterised into two types of power i.e. Expert power
and referent power.

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Leader and her leadership story
Leaders come from various diverse groups and from wide arenas like racial, socioeconomic
nationalities and religious background (Walumbwa and Schaubroeck, 2009). One can distinct
the leader on the basis of his/her work, not from the designation. It can be ascertained that
half of the leaders are CEOs and the other half consists of youth, mid-career and non-profit
leaders.
For getting more further knowledge about how leaders are born and transformed, a story of
Andrea Jung is taken. She was the former CEO of Avon products and after becoming of her
CEO, the structure of the company vision completely changed (Lee and James, 2007). The
organization, Avon is focused on selling of beauty products but Andrea tends the vision
towards the women empowerment. The workforce of Avon rise to 5.5 million from 1.5
million and acquiring economic independence with their own efforts. The foundation in
respect with Avon Women was also rewarded $1 billion to reinforce health and
empowerment issues and this makes the organization focus towards largest women oriented
corporate around the globe (Peterson and Philpot, 2007).
It can be said that Jung is a woman with strong determination. She was initially hired as the
president of the marketing group in relation with US operations. In application with trait
theory, Jung uses various combinations of skills i.e. assertion, determination, cooperation,
and this led her to open up with a new Avon Apparel line, which got success in one shot. She
also has the trait of constant innovation as she came up with slogan of “Just another Avon
lady”. This step helps her in branding the corporation as hipper and younger.
Becoming the first ever female CEO of Avon was not a quality that Andrea Jung was born
with. Her potential, performance and work determination led her to create a designation for
herself in the company. Considering the behavioural theory, it is learned that no person is
born with leadership qualities and it is the work which makes an individual to be recognized
as a leader.
In respect with extending of women empowerment in the world, Andrea has ping an example
of participative leader as she lends the credit to the sales representative and this makes the
objective accomplished in relation of involvement of employees. In addition, as Jung

LEADERSHIP AND STRATEGIC MANAGEMENT 6
introduces a new brand line in respect with women apparel, the objective of transformation
theory of leadership is also accomplished. She had successfully motivated and inspire her
employees to invent creative ideas by introducing a new line of business under the same
brand name.
One such happening incident also took place with the emergence of the epidemic breast
cancer and this was spreading like a wildfire. Once a time in USA, when the incident of
breast cancer covered 99% percent of the population and count of death was reached to about
100% of population (Glass, Lacey Jr, Carreon and Hoover, 2007). Andrea Jung took this
epidemic as a cause and determines herself to end this. These steps make her a situational and
contingent leader.
Up to the 20th century, leaders are more perceived to be oppressive and powerful but with the
emergence of 21st century, leaders characterised has been changed (Van Vugt, Hogan and
Kaiser, 2008). Employees now are more aware and have question about the benefits, work
structure, payment, etc. Therefore, leader cannot misuse their position now for the purpose of
exploitation of the worker.
Discussion on my leadership
It is ascertained that leading yourself is the toughest job. I need to follow six principles to
inculcate leader in myself –
 I need learn self-awareness aspect to diagnose good and faulty trait in me and a
possibility to make them right.
 Practicing principles and value when things are in your favour and on easy task. The
issue raised when the pressure of time exercised over these principles.
 To stay focused, it is very important to bring a supportive team.
 Integration of life and work is also required to be embedded.
 I must need to make balance between intrinsic and extrinsic motivations.
 My passion in relation with leadership must need to be expressed.
In relation to the leadership skills, Andrea Jung receives a Clinton Global Citizen Award. I
would have acted in the same manner but I as a leader would also like to focus on giving

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employment and empower those who do not have work. Women empowerment is very
necessary but employment on large-scale basis irrespective of gender is urgent.
In 2008, there were the corruption charges placed on Avon in China in respect with Foreign
Corrupt Practices Act (Hemdon, 2008). These corruptions charges were against the
employees. For the business expansion, diversification is necessary but it is also important to
manager officials in spectating matters related to the corruption in the multinational branches.
To prevent the act of corrupt practices, I would have appointed more officials. PETS also
delisted Avon, as the company did not test their products on animals as per the China policy
to perform corporate operations in their nation (Thompson, 2014). In my opinion, it is
important to follow the rules and policies of a respective country where business need to
carry out. In terms of strategic management, it is the responsibility of the leader to bind the
corporation together so as to run the business effectively.
I could have considered the above leadership style and strategy with some other perspectives
for the objective of ensuring higher level of success.

LEADERSHIP AND STRATEGIC MANAGEMENT 8
Conclusion
In this report, a critical evaluation is done with respect to the various leadership styles and
theories. This analysis needs to be considered highly effective for meeting out the strategic
goals of the business corporation. An analysis is also being carried out in respect to the
leadership style of Andrea Jung, former CEO of Avon. This study indicated that the leader
has been highly enthusiastic in terms of making the organization to a level of success. Her
leadership style was successful in achieving higher revolutionary development to the entire
organization performance. Apart from these, bringing new line of Avon apparel seems to be
highly visionary in nature and have great influential capabilities that can transform the
business into a higher level of success. The analysis also includes what could have been done
by me differentially and adaption of the participative leadership style in order to achieve
highly efficient performance conditions.

LEADERSHIP AND STRATEGIC MANAGEMENT 9
References
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leadership using self and observer ratings of personality: The mediating role of contributions
to group success. The Leadership Quarterly, 23(4), pp.670-685.
Elias, S. (2008) Fifty years of influence in the workplace: The evolution of the French and
Raven power taxonomy. Journal of Management History, 14(3), pp.267-283.
Glass, A.G., Lacey Jr, J.V., Carreon, J.D. and Hoover, R.N. (2007) Breast cancer incidence,
1980–2006: combined roles of menopausal hormone therapy, screening mammography, and
estrogen receptor status. Journal of the National Cancer Institute, 99(15), pp.1152-1161.
Herndon, N.C. (2008) Jumping into the mouth of the dragon: Profits and perils for channel
managers in the emerging China market. Journal of Marketing Channels, 15(2-3), pp.95-119.
Huang, X., Iun, J., Liu, A. and Gong, Y. (2010) Does participative leadership enhance work
performance by inducing empowerment or trust? The differential effects on managerial and
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Peterson, C.A. and Philpot, J. (2007) Women’s roles on US Fortune 500 boards: Director
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Schaubroeck, J., Lam, S.S. and Peng, A.C. (2011) Cognition-based and affect-based trust as
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Psychology, 96(4), p.863.

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Skogstad, A., Einarsen, S., Torsheim, T., Aasland, M.S. and Hetland, H. (2007) The
destructiveness of laissez-faire leadership behavior. Journal of occupational health
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