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Contingency theory is similar to situational theory. Both believe in that there is no one right way. But they differ as the situational theory tends to focus more on the behaviours adopted by the leader, given situational factors often about follower behaviour , whereas the contingency theory takes a broader view that includes contingent factors about leader capability and other variables within the situation.
Four important approaches in isolating key situational variables have been very important. Bureaucratic leadership follows a close set of standards. One will often find this leadership role in a situation where the work environment is dangerous and specific sets of procedures are necessary to ensure safety. A natural bureaucratic leader will tend to create detailed instructions for other members of a group. The bureaucratic leadership style is based on following normative rules and adhering to lines of authority.
Sociologists, political historians, and political scientists have widely accepted the theory of charismatic leadership originally advanced by Weber Charisma is regarded as of divine origin or as exemplary, and on the basis of them the individual concerned is treated as a leader. Charismatic leaders inspire via persona, reputation, and communications and also show courage, competence, and idealistic vision. A visionary leader perceives challenges and growth opportunities before they happen, positioning people to produce extraordinary results that make real contributions to life.
How to develop and retain leaders who can guide your organization through times of fundamental change. See also "Find Your Strategic. There is a great amount of definitions and theories about effective leadership. Each leader chooses their unique formula of success, but still.
The list is endless. Strategic leadership can also be defined as utilizing strategy in the management of employees.
It is the potential to influence organizational members and to execute organizational change. Strategic leaders create organizational structure, allocate resources and express strategic vision. Thus, this type of leadership relates to the role of top management. Strategic leaders work in an ambiguous environment on very difficult issues that influence and are influenced by occasions and organizations external to their own. The main objective of strategic leadership is strategic productivity.
Strategic leaders encourage the employees in an organization to follow their own ideas. Strategic leaders make greater use of reward and incentive system for encouraging productive and quality employees to show much better performance for their organization. Functional strategic leadership is about inventiveness, perception, and planning to assist an individual in realizing his objectives and goals.
Greenleaf in The Servant as Leader, an essay that he first published in Leaders have a responsibility towards society and those who are disadvantaged. People who want to help others best do this by leading them. The servant-leader is servant first and leader next. The servant leader serves others, rather than others serving the leader. Serving others thus comes by helping them to achieve and improve.
The term has been brought to light by Kerr and Jermier in The term substitutes mean the situation where leader behaviours are replaced by characteristics of subordinates, the task at hand, and the organisation. Transactional leadership is based upon the assumptions that people are motivated by reward and punishment Rational Man , social systems work best with a clear chain of command, when people have agreed to do a job, a part of the deal is that they cede all authority to their manager, and the basic purpose of a subordinate is to do what their manager tells them to do.
The style of a transactional leader is that he works through creating clear structures whereby it is made clear as to what is required of subordinates and the rewards that they get for following orders. Punishments are not always mentioned, but they are also well- understood and formal systems of discipline are usually in place. To begin with, Transactional Leadership negotiates the contract whereby the subordinate is given a salary and other benefits, and the company gets authority over the subordinate. While the leader allocates work to a subordinate, they are considered to be fully responsible for it, whether or not they have the resources or capability to carry it out.
When things go wrong, then the subordinate is considered to be personally at fault, and is punished for their failure just as they are rewarded for succeeding. The leader often uses management by exception, working on the principle that if something is operating to defined and hence expected performance then it does not need attention. Exceptions to expectation require praise and reward for exceeding expectation, whilst some kind of corrective action is applied for performance below expectation.
In management versus leadership spectrum, it is more towards the management end. Transactional leadership is based in contingency, in that reward or punishment is contingent upon performance. Transactional Leadership is still a popular approach with many managers, despite its limitation of ignoring complex emotional factors and social values.
When the demand for a skill outstrips the supply, then Transactional Leadership often is insufficient. Transformational leadership is the answer. Transformational leadership is based upon the assumptions that people will follow a person who inspires them, a person with vision and passion can achieve great things, and the way to get things done is by injecting enthusiasm and energy. These leaders are focused on the performance of group members, but also want each person to fulfil his or her potential.
Leaders with this style often have high ethical and moral standards. Transformational Leadership starts with the development of a vision. This vision may be developed by the leader, by the senior team or may emerge from a broad series of discussions. The next step is to constantly sell the vision. While doing so, he must create trust and personal integrity. Along with selling, the leader finds the way forward. And finally, transformation leaders remain upfront and central during the action and visible — constantly doing the rounds, listening, soothing and enthusing.
Early research on leadership was based on finding the traits which differentiated leaders from non-leaders. This is the crux behind leadership development programmes. Paradoxically, the energy that gets people going can also cause them to give up. He should have personal contacts with employees and should listen to their problems and solve them. This style has a high concern for people and a low concern for production.
Transformational Leader seeks to infect and reinfect their followers with a high level of commitment to the vision. They are people- oriented and believe that success comes first and last through deep and sustained commitment. Transformational Leaders are often charismatic, but are not as narcissistic as pure Charismatic Leaders, who succeed through a belief in themselves rather than a belief in others. Whilst the Transformational Leader seeks overtly to transform the organization, there is also a tacit promise to followers that they also will be transformed in some way.
One of the traps of Transformational Leadership is that passion and confidence can easily be mistaken for truth and reality. Paradoxically, the energy that gets people going can also cause them to give up.
Transformational Leaders also tend to see the big picture, but not the details, where the devil often lurks. If they do not have people to take care of this level of information, then they are usually doomed to fail. Finally, transformational leaders, by definition, seek to transform. When the organization does not need transforming and people are happy as they are, then such a leader will be frustrated.
It is important for the follower to understand the difference between Charismatic Leaders and Transformational Leaders. They both are Inspiring and both have a Vision and both are not as caring about people as followers might want them to be. Charismatic Leaders are Inspiring in order to lead for their own purpose which may or may not benefit the organization or people. On the other hand, Charismatic Leaders abuse or fire persons who do not agree with them, or who question their vision or otherwise inhibit their personal accomplishment as Leaders improve organizational efficiency for the good of the organization.
On the other hand, Charismatic Leaders abuse or fire persons who do not agree with them, or who question their vision or otherwise inhibit their personal accomplishment as Leaders. To conclude, transformational and transactional leadership are not opposite to each other, rather they are complementary.
A great transformational leader has to be a great transactional leader as well. Before we delve into describing leadership styles, it would be proper to distinguish between types of leaders and styles of leadership.
It is the result of the philosophy, personality and experience of the leader. Leadership style refers to how decisions are made to providing direction, implementing plans, and motivating people.
It works well if the leader is competent and knowledgeable enough to decide about each and every thing. All decision-making powers are centralised in the leader, as with autocratic leaders. No suggestions or initiatives from subordinates are acceptable. Authoritarian or autocratic leadership does not mean using foul language and leading by threats.
This style should be used only when the leader has all the information and is short of time and the employees are well motivated. If the leader wants to gain greater commitment and motivate his subordinates, then it should be used very rarely. A Participative Leader, rather than taking autocratic decisions, seeks to involve other people including subordinates, peers, superiors and other stakeholders in the process.
Here the leader takes his subordinates into confidence about what to do and how to do, but the final authority vests in the leader. This style can be divided into two — one, where leader consults, and two, where decision is taken through consensus.
Use of this style by a leader is not a sign of weakness. It is the strength, your subordinates will respect. This style is used when the employees are knowledgeable and skilful. This style is also known as consultative, empowerment, joint decision-making, democratic leadership, Management by Objective MBO and power-sharing. It helps in ascertaining and identifying future leaders among the subordinates.
To illustrate, an advertising manager approaches his subordinates on how to promote a particular product of a company. The team members brain storm over the issue, some suggest print media and others suggest electronic media. Practice what you preach, and the results will astonish you. Especially during hard times, when chances to give up are very big, you should be the one who faces obstacles with confidence and determination towards success. Be sure, that they will do the same and stand by your side. Leading Means Making an Impact Think about the greatest leaders in history.
What was the one thing they had in common? Yes, they all made an impact. Leadership is not just setting goals and effectively achieving them with your team. Leadership is not just brilliant public speaking and great communication skills. If you want to be an authentic leader, you should have your unique contribution to the welfare of the society.
You should make a positive change. Each person can be very busy implementing various tasks, but the key is devoting your efforts and time to the realization of your vision. Vision is what inspires people to take action and go forward. Discover your unique vision and coordinate all your activities towards it.
Inspire each and every member of your team with that vision. Actions Speak Louder Than Words It's not a secret that much talking and less acting has nothing to do with effectiveness. What people see affects them many times greater than what they hear. Don't waste your and other people's time on endless conversations about your plans. When revenues and profits slip, business managers are faced with tough financial choices that affect personnel as well as operations. Nonetheless, dedicated employees expect leaders to be loyal and honest. If business is hurting, tell the truth up front, but make a concerted effort to ensure employee needs are satisfied.
In turn the employees, will remain with the company for the long-haul. Outsourcing and globalization are hot-button issues. Small-business leaders work in close quarters with employees, resulting in a strong personal and professional rapport throughout the organization. Managers must be careful about being too sociable and extroverted.
From a legal perspective, fraternizing with employees can open a leader up to charges as serious as sexual harassment. A strong leader should know how to effortlessly boost morale and tactfully diffuse tension without compromising the altitude of the position of leader and the respect due to it. Small business leaders can still demonstrate humility while being reserved and competent.
Business owners and managers may have education, training and experience that trumps regular employees, but everyone is human. Admit personal mistakes and business errors. Management has to know when to rule with a firm hand, but be supportive when employees need relief from work and life in general. For example, while reprimanding employees for being tardy, probe for ways to fix the problem, such as creating a carpool.
Send flowers and cards for celebrations, such as weddings, and show sincere respect when an employee or family member is infirm or passes away. Let employees know that you care about their well-being. Damarious Page is a financial transcriptionist specializing in corporate quarterly earnings and financial results. Page holds a medical transcription certificate and has participated in an extensive career analysis and outplacement group workshop through Right Management.