NM4602 Examination Answer Document

Question number: 2

Answer: 2

Introduction

Leadership is the type of ability of an individual used to motivate a group of people to achieve the targets or goal whether the targets are related to their organisation or personal life. In the case of an organisation, leaders always use the proper leadership style to direct and support the employees or team members to achieve the organisational goals (Nanjundeswaraswamy And Swamy,2014).

Leadership skills are very useful for the organisation because Leadership skills help the leaders of an organisation to motivate and support the staff in their work to achieve the organisational goal. According to a given scenario, the company appoints new CEO who makes several changes that are not acceptable to the managers. Due to this reason, some employees leave their jobs and join the new companies. So, in this case, the new CEO must use leadership style or theory such as trait theory and contingency theory.

The CEO must use these theories to communicate the changes to the staff and also motivate them for adopting the changes. In this way, staff adopt the changes and work happily to achieve the organisational goal and the staff turnover rate also decreases(Nanjundeswaraswamy and Swamy, 2014).

The CEO must need to adopt the leadership theory to reduce the staff and our rate and also to retain the staff.

Theory explanation

First theory – Trait theory

According to the Trait theory, leaders must use the two-leadership style such as transactional leadership style and transformational leadership styles.

Transactional leadership style – It is a type of leadership style that leaders used to give rewards and punishment to the subordinate or team members according to their performance.

Transformational leadership – is a type of leadership style that leaders used to inspire and encourage the team members to create new innovative ideas and changes that help them in achieving their goals for future success. Leaders work with their team members to give direction and mentoring to complete the particular work with quality and on time. Leaders delegate the task to the employee according to their skills and also provide feedback to them for improving their performance.

Second Theory – Path-goal Model – Contingency Theory

According to the path-goal model-contingency theory, leaders must use the phone leadership style such as directive leadership style, participative leadership style, supportive leadership style, and achievement-oriented leadership style.

Directive leadership style – it is a type of style where leaders expect their employees for achieving organisational goals. They also follow all the rules and procedures of the organisation.
Participative leadership style – it is a leadership style that leaders use to consult things with their subordinates and also listen to their ideas or opinions on particular topics to make the final decisions.
Supportive leadership style – it is the leadership style that leaders use to support their team members by doing work together and treating all the employees equally.
Achievement-oriented – it is a leadership style that the leaders used to set challenging goals for the team members and also motivate them for achieving the goals. In this way, new skills will be developed in the team members which they used to face any challenges that occur or maybe occur in the organisation.

Theory application

First theory – Trait theory

The company need to implement the trait theory in the organisation because the CEO of the organisation can use this theory to give rewards to the employees for their good performance. In this way, employees get motivated and adopt the changes to achieve the organisational goals. The CEO also use this theory to inspire or motivate the staff team members to create new ideas or changes that need to be implemented in the organisation to improve the overall business performance. In this way, employees feel the important part of the organisation and get retained. If they get retained then the employees’ turnover rate of the business will decrease and employees also adopt the changes easier to achieve the organisational goals.

Second Theory – Path-goal Model – Contingency Theory

The company need to implement the path-goal model-contingency theory because it helps the CEO of an organisation can use this theory to retain the staff member and implement the new changes in the organisation with the consent of employees. This theory helps the CEO by providing information related to the different leadership styles which he used to support, manage, and organise the staff member. This leadership style CEO can use to take the suggestions of the staff members to improve the performance of the business.

Critical evaluation

First theory – Trait theory

The limitation or weakness of the trait theory of leadership is that the theory doesn’t provide any comparative results. The leaders that used this theory only focused on building good working relationship with the team members subordinates. To make a good relationship with the subordinates and gives flexibility to them due to which employees do their work without taking any pressure and deliver their work after the deadlines.

Second Theory – Path-goal Model – Contingency Theory

As we know that contingency theory contains four types of leadership styles that have different impacts on the performance of the subordinates. Due to different impacts, leaders can’t able to build relationships with their employees properly. If the business working relationship of the leaders and subordinates is not good then subordinates get frustrated from the job roles and switch the company for future success.

Recommendations

According to my suggestion, the new CEO of the organisation must use the two-leadership style of the contingency theory which is a supportive and participative leadership style. A supportive leadership style helps the CEO by providing way to support the employees in their work and mentoring them when they face difficulties in the work to achieve the organisational goals. The participative leadership style helps the CEO by providing way to get suggestions from the employees on the particular problem of the business to make the final decision for the expansion of the business. CEO much conduct the reward and recognition program in the organisation to give rewards to the employees who perform well. In this way, other employees get motivated to improve their performance for getting rewards from the company. CEOs also must give feedback to the Employees on their performance whether the performance is negative or positive. The CEO must take suggestions from the subordinates or their colleagues before implementing the new changes in the organisation. In this way, employees feel themselves an important part of the organisation and give their best suggestions to improve the performance of the overall business.

Conclusion

According to my suggestion, the CEO of the business must adopt or use the trait theory and contingency theory of leadership to successfully implement the changes in the organisation with the consent of colleagues. If he uses both the theories of leadership then the employees’ turnover rate will be decreases and employees easily adaptor the changes implement by the CEO for achieving the organisational goals.

Contingency theory and trade theory must be implemented in the organisation for employee retention and to decrease the employee’s turnover rate. These Two theories also help the organisation by building good working relationship between the superior and support which is very important for every organisation. Superior and subordinate relationships are beneficial for the organisation because they help in achieving the organisational goals on time.

Reference

Nanjundeswaraswamy, T.S. and Swamy, D.R., 2014. Leadership styles. Advances in management, 7(2), p.57.https://d1wqtxts1xzle7.cloudfront.net/51993044/leadership_styles-with-cover-page-v2.pdf?Expires=1650386061&Signature=CJRQ1SwlBy8uN9zAyaqzpt~dpd~UIsaLL6aSBNvpQ4ipeurYp~qbcZraUby~niMmoQICNn45g78xWMUqRgUS5g1Psgd~b06qwlJOz42Wrm0WH~wp4DdFegmy2X8vdq85wvKnKEPTyU8i19yq63TxUlhvX0hSFAALMM0LE~c7Cpynab7aMmjAhxwNz-UZfzLPR2ydNpEUpvII8MKGBkZDmKEGqH-zEAXH2nSU5VvW~VC~uRcOhvLOlD5KTqgZDTKbC7pkfLjOHk8letUWtKcIFKdkyCM9yvMfUCPyDJ4jTbD510ZNVwqI50TVfPfVM8SQS53mQpyzfbM-yT2YA0mijA__&Key-Pair-Id=APKAJLOHF5GGSLRBV4ZA

Sethuraman, K. and Suresh, J., 2014. Effective leadership styles. International Business Research, 7(9), p.165.https://pdfs.semanticscholar.org/d2a2/528ddffc694b43fd5bcf3c68826de4da2eb3.pdf