In: Economics
1) an effective leadership always tries to build friendly relations with employees for example : a chocolate company wants to produce more than its usual production in such a scenario having good relations is a must as the workers may refuse to work owing to the increased working hours .A bad leader ignores the plight of workers which may bring lots of troubles to the company for example if the leader doesn't show any concern at the safety of work place and salaries then they may go on a strike which affects the production.a good leader always inspires ,motivates the workers,cooperates with employees,listens to the problems,adjusts himself,sets goals and targets and make employees work towards them .A bad leadership proves to be fatal to the objectives of an organisation negligence towards work, ignorant of happenings, missing the coordination with employees,refusing to work towards the common goal, absence of clear vision, communication problems etc may be the effects of a bad leadership which is always harmful to any organisation.
2)As the name suggests situational leadership changes from time to time based on the situation .Let's take for example a leader of a chocolate company who always tries to maximise production except in summer owing to the hot climate that affects the chocolates ,on the other hand if we observe low temperatures even in summer then he continues his production .
The situational theories depend on the understanding between the employees and their leader .The situational leadership theories suggest that we can't have a defined leadership that proves to be effective under all circumstances instead an effective leader always changes his decisions based on the situation to be effective. Situational leadership theory by hersey and Blanchard defined some traits in the form of leadership styles and maturity levels. Leadership styles vary in terms of four ways such as selling, delegation,telling and participation. A leader's capacity is checked in these 4 ways . And the maturity levels include commitment and competence they are again categorised into 4 types 1) low competence and low commitment 2) low competence and high commitment 3) high commitment and low competence 4) high competence and high commitment.
3)transformational theory concentrates on the transformational changes that have to be brought among the activists and followers of a leader in order to sustain any situation ,the theory often brings out new changes by modifying the organisation and it's culture , motivation and empowerment is done through individual consideration, intellectual stimulation, inspirational motivation, ideal influence .
On the other hand transactional leadership theory stresses on performance and productivity of people influenced by their leader .It is usually done by two ways rewards and punishments i.e. by a carrot and stick policy.this theory is bound by the organisation's culture i.e it doesn't implement anything other than those mentioned in its formulation , listens to employees and followers ,sets several common objectives and guides employees towards reaching them , individual incentives are provided in order to make them strive for excellence irrespective of any problem .