In: Accounting
evaluate key leadership and management theories.
A)KEY LEADERSHIP THEORIES
People have long been interested in leadership throughout human history, but it has only been relatively recently that a number of formal leadership theories have emerged. Interest in leadership increased during the early part of the twentieth century.
Early leadership theories focused on what qualities distinguished between leaders and followers, while subsequent theories looked at other variables such as situational factors and skill levels. While many different leadership theories have emerged, most can be classified as one of eight major types
i)Great Man" Theories
Have you ever heard someone described as "born to lead?" According to this point of view, great leaders are simply born with the necessary internal characteristics such as charisma, confidence, intelligence, and social skills that make them natural-born leaders.
Great man theories assume that the capacity for leadership is inherent—that great leaders are born, not made. These theories often portray great leaders as heroic, mythic, and destined to rise to leadership when needed. The term "Great Man" was used because, at the time, leadership was thought of primarily as a male quality, especially in terms of military leadership.
ii)Contingency Theories
Contingency theories of leadership focus on particular variables related to the environment that might determine which particular style of leadership is best suited for the situation. According to this theory, no leadership style is best in all situations.
Leadership researchers White and Hodgson suggest that truly effective leadership is not just about the qualities of the leader, it is about striking the right balance between behaviors, needs, and context
iii)Situational Theories
Situational theories propose that leaders choose the best course of action based upon situational variables. Different styles of leadership may be more appropriate for certain types of decision-making.
iv)Trait Theories
Similar in some ways to Great Man theories, trait theories assume that people inherit certain qualities and traits that make them better suited to leadership. Trait theories often identify a particular personality or behavioral characteristics shared by leaders. For example, traits like extroversion, self-confidence, and courage are all traits that could potentially be linked to great leaders.
There are plenty of people who possess the personality traits associated with leadership, yet many of these people never seek out positions of leadership. There are also people who lack some of the key traits often associated with effective leadership yet still excel at leading groups
v)Behavioral Theories
Behavioral theories of leadership are based upon the belief that great leaders are made, not born. Consider it the flip-side of the Great Man theories. Rooted in behaviorism, this leadership theory focuses on the actions of leaders, not on mental qualities or internal states. According to this theory, people can learn to become leaders through teaching and observation.
vi)Participative Theories
Participative leadership theories suggest that the ideal leadership style is one that takes the input of others into account. These leaders encourage participation and contributions from group members and help group members feel more relevant and committed to the decision-making process. In participative theories, however, the lender retains the right to allow the input of others.
vii)Management Theories
Management theories, also known as transactional theories, focus on the role of supervision, organization, and group performance. These theories base leadership on a system of rewards and punishments. Managerial theories are often used in business; when employees are successful, they are rewarded and when they fail, they are reprimanded or punished.
viii)Relationship Theories
Relationship theories, also known as transformational theories, focus upon the connections formed between leaders and followers. Transformational leaders motivate and inspire people by helping group members see the importance and higher good of the task. These leaders are focused on the performance of group members, but also want every person to fulfill their potential. Leaders with this style often have high ethical and moral standards.
B)MANAGEMENT THEORIES
Management theories are concepts surrounding recommended management strategies, which may include tools such as frameworks and guidelines that can be implemented in modern organizations. Generally, professionals will not rely solely on one management theory alone, but instead, introduce several concepts from different management theories that best suit their workforce and company culture.
i)Scientific Management Theory
American mechanical engineer Frederick Taylor, who was one of the earliest management theorists, pioneered the scientific management theory. He and his associates were among the first individuals to study work performance scientifically. Taylor’s philosophy emphasized the fact that forcing people to work hard wasn’t the best way to optimize results. Instead, Taylor recommended simplifying tasks so as to increase productivity.The strategy was a bit different from how businesses were conducted beforehand. Initially, a factory executive enjoyed minimal, if any, contact with his employees. There was absolutely no way of standardizing workplace rules and the only motivation of the employees was job security.
ii)Theory X and Theory Y
Do you believe that every individual gets maximum satisfaction from the work they do? Or are you of the opinion that some view work as a burden and only do it for the money? Such assumptions influence how an organization is run. The assumptions also form the basis of Theory X and Theory Y.
Douglas McGregor is the theorist credited with developing these two contrasting concepts. More specifically, these theories refer to two management styles: the authoritarian (Theory X) and participative (Theory Y).
In an organization where team members show little passion for their work, leaders are likely to employ the authoritarian style of management. But if employees demonstrate a willingness to learn and are enthusiastic about what they do, their leader is likely to use participative management. The management style that a manager adopts will influence just how well he can keep his team members motivated.
iii)Systems Management Theory
Systems management offers an alternative approach to the planning and management of organizations. The systems management theory proposes that businesses, like the human body, consists of multiple components that work harmoniously so that the larger system can function optimally. According to the theory, the success of an organization depends on several key elements: synergy, interdependence, and interrelations between various subsystems.
iv)Contingency Management Theory
The main concept behind the contingency management theory is that no one management approach suits every organization. There are several external and internal factors that will ultimately affect the chosen management approach. The contingency theory identifies three variables that are likely to influence an organization’s structure: the size of an organization, technology being employed, and style of leadership.
According to Fiedler’s theory, there’s a set of leadership traits handy for every kind of situation. It means that a leader must be flexible enough to adapt to the changing environment. The contingency management theory can be summed up as follows: