Leadership Styles

Leadership Styles in HR Management

The process of globalization is acting to enhance many changes in everyday life of the population of the world, and leadership is considered one of the main means to achieve the desired results in the most effective way. Application of leadership styles in health care organizations is considered extremely important, as human life is the greatest value, as well as those health care workers who apply various leadership styles in order to contribute to people’s health maintenance and as a consequence, to life safety. Examining the concept of leadership, it is very important to distinguish several styles that can be noticed in the modern practice and also provide a clear explanation of traits of successful leaders. Description of real world leaders and their styles and practice would be useful for better understanding of the results of the concept application.

However, first of all, a clear definition of the concept of leadership needs to be provided. Leadership is not a passive theory, but it is a process which represents actions of people. It is important to pay attention to the fact that organization, hospital in this particular case, cannot represent a leader, but only a person can perform this function, as leadership is based on interactions among people (Leedy, Ormrod, 2010).

Leadership is directed to a person or a group of people whose behavior is aimed to be changed. After the aim is reached, these people become the followers and their present is an integral feature of leadership.

As a process, leadership means that some people should be influenced, and there are several ways to act so. First of all, the followers can be changed by intellectual activity; secondly, emotional influence can be applied, and finally, the leader might cause behavioral influence.

Being a complex concept, leadership does not only allow the leader to apply various modes to influence people, but it also gives the leader an opportunity to apply various leadership styles.

Leadership Styles
Leadership Styles

Three main styles of leadership can be defined. These are authoritarian, democratic, and free reign style. The first one is used when the leader tells the subordinates what should be done. For example, it takes place when a registered nurse tells their subordinates what actions need to be taken to provide a better health care or follow the rules of the hospitals. This style is appropriate when the leader has enough information and skills and also when the subordinates are well-motivated. Time limitations are acceptable for the style and do not make any significant difference when decisions of the leader take into account real opportunities of the subordinates.

Democratic leadership style is especially popular now. It is applied when the leader believes that it is better to work together with the team. Nevertheless, despite the common work, the leader is the person to make the final decision. However, this style of leadership is applied when it comes to internship in health care settings, as the leader does not possess enough information or skills. Such leaders are not required to have some sophisticated skills, so they start working with other employees who have better qualification. Such style is considered mutually useful, as it enables the leader and the team to make more reasonable decisions.

Free reign style is also applied at health care settings, especially when it comes to the work of nurses. Today their roles are increasing and they perform more and more functions. Some of them, such as medication prescription, are allowed to be performed without control of physicians and this example might serve to illustrate the style. It is important to notice that, despite the fact that representatives of the team make various decisions, their leader is the one to be responsible for them. The style is used only when health care providers are able to analyze the situation on their own and identify what should be done and how it should be done (Service, 2009).

Regardless of the fact which style of leadership is chosen, the leader needs to possess the following traits:

  • Being self-balanced
  • Being ambitious
  • Decisiveness
  • Enthusiasm
  • Being self-confident
  • Realism
  • Desire to learn
  • Being just and fair
  • Being creative, and so on.

The list of the traits can be continued, and it has been proven by Linda Aiken and Geraldine “Polly” Bednash who were recognized to head the list of the nursing leaders. These two nurses have outstanding experience in terms of teaching, research, and clinical practice; they have received numerous honors and credentials for their contribution to the world of medicine and health care provision (Fralic, 1999).

Thus, it is possible to conclude that leadership is extremely important to be applied in every health care organization. The history knows numerous leaders who provided health care and contributed to the health of population, and all of them possessed a range of skills. These are being improved and made more advanced under the influence of the process of globalization.

References

Fralic, M. (1999). Nursing Leadership for the New Millennium: Essential Knowledge & Skills. Nursing and Health Care Perspectives, 20 (5).

Leedy, P.D. and Ormrod, J.E. (2010). Practical research: Planning and design. (9th ed.). Upper Saddle River, NJ: Prentice Hall.

Service, R. (2009). The leadership Styles Quotient: Measuring toward Improve. Business Renaissance Quarterly, 4 (1).

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Tesla Motors Case Study

Tesla Motors Case Study

With the increased focus on renewable energy driving all, sector the country’s economy. The transport sector has also received numerous recommendations to reduce carbon emissions. It is against the backdrop of these ideal that Tesla Motors Company was created. This case study will examine Tesla motor companies strategies as well as assess their internal and external environment in order to create viable recommendations for a sector, which is highly competitive. This case study report will begin with background information about the company then assess the organisation strategic positions and this will be undertaken with the use of Porter’s five forces and SWOT analysis. The outcomes from this model will aid in the recommendation, which will be vital for the organisations.

Tesla Motors Background

According to Tesla (2014) the organisation was formed in 2003 as a revolutionary car business using the latest technology as its competitive advantage. The car was able to conceptualise and create an independently electric vehicle known as the roadster. The concept of the car designs was Silicon Valley inspired. According to Ehrler et al. (n.d, p. 381) the organisation “designs, manufactures and sells zero emission electric cars and power train parts, such as lithium-ion battery packs”. The organisation has sought for strategic partnerships with companies such as Daimler, Panasonic, Toyota and US department of energy (Ehrler et al., n.d, p. 383).

Tesla Motors PESTEL Analysis

PESTEL analysis is a viable tool used to examine an organisation environment and is crucial in the identification of key areas of improvement as well as potential problems likely to emerge (Yuksel, 2012). The external environment is a factor, un-controlled by the organisation and all the eternities function as influences to the organisation operations as seen in figure 1 below. The models take into consideration the political, economy, the social, technology, legal and environment.

Tesla Motors PESTLE
Tesla Motors PESTLE

Figure 1 PESTEL Model

(Sourced from: Business and Management: 4th November – 11th November 2013, – PESTLE Analysis, 2015).

Political

According to Tesla (2014), Tesla motors sell their cars in numerous countries across the United States, Europe and Asia and hence, the company is exposed to different political situations occurring in all those countries. According to the Environmental- protection.org.uk (2014), some countries political environment are affected by climate change issues and hence, law enacted to cut carbon emission by a particular percentage and this affects car manufacturers. The US government is offering incentives to car manufactures that endeavour to product cars more efficient and better in utilising green car technology.

Economic

There is an alternative avenue for growth for cars offering cars, which utilise alternative energy. The increase costs of petroleum have made business more difficult and hence, businesses and individuals are in need of an alternative solution to the rising fuel costs. Most developed countries are now recovering from the financial crisis; the purchasing power is now higher, great new for manufacturers who have products that at needed.

Social

Today the word green technology is associated with companies that are considered to be producing products that are good for the environment. Carbon emission from vehicle exhausts are a big contributor to greenhouse gases affecting the earth environments (Wunch et al., 2009).

Technological

The car sector has seen tremendous changes due to technological innovation affecting several aspects of the car efficiency. Vehicles have been going through metamorphosis with car manufactures looking for way of reducing the fuel intake in order to improve efficiency.

Environmental

Eco friendly car is the word spoken to car manufacturer if they rare to remain competitive by customers across the world. With fuel leakages reported in some places, resulting in a loss of marine and bird life, there have been a growing number of environmentalists forcing their government to regulate the sector and allow only fuel-efficient cars on their roads. What happens to the ozone layer is another factor pushing some individual and institutions to consider vehicles, which do less damage to the environment.

Legal

The US has a market presents challenges for Tesla as a car manufactures especially due to the franchise laws in the country (Fisher, 2014). The energy loan program also in the country increases the chances of car manufacturer to produce more green cars in the sector.

All the factors seen above have the effect of directing the way a car manufacturer does business in US. It is vital to determine how external environments affect the organisation in order to work from there, building competence in a way, which is likely to result in a more beneficial manner. Of major significance in the assessment of Tesla’s external environment are the franchise laws, which would stop the company from distributing their cars in some states in the country. However, the much of the external influence faced by the car manufactures geared to more in support of the company and trends show the vehicle sector is set to follow Tesla direction in the future.

Tesla Motors Competences (SWOT Analysis)

In order to determine Tesla’s competences in the vehicle industry, a SWOT analysis is carried out to examine the organisations strengths, weaknesses, opportunities and threats (Hill, & Westbrook, 1997. It is vital to assess the organisation internal capabilities for a more effective recommendation outcome. A SWOT analysis model is presented in figure 2 below.

Tesla Motors SWOT
Tesla Motors SWOT

Figure 2: SWOT analysis

(Sourced from: Doing a SWOT Analysis to Focus Your Marketing Strategy, 2015)

Strengths

Tesla motors have been able to create executive cars, which are totally fuel free and are energy efficient since they are based on electric power, which are saved on batteries. Tesla cars have been able to go for more than 300 miles without having to recharge their batteries and the closest competitor can only reach 100 miles, which is a significant benefit to the company. In 2013 their car, the “Tesla S” was awarded the price as the trendiest car of the year.

Tesla has been able to reduce its input costs significantly through outsourcing of other parts needed for the manufacture of their vehicles and this has allowed the organisation to reduce its costs. Its collaboration with Panasonic is likely to have an even more powerful battery, which is likely to push their cars even further. In addition, its collaboration with Daimler and Toyota has greater advantages and the company is set to provide vital parts for needed for electronic cars for the two companies.

The organisation has invested a large amount of research and development and this is key to pay off in the future when new technology which is likely to further revolutionise the car sector will be a necessity and this goes in hand with their objectives which is to be in the forefront of the electric vehicle sector.

The organisation has been able to utilise just in time JIT manufacturing systems and only those cars, which are ordered, manufactured and this reduces storage costs and enables them to have a smaller facility. This form of lean management process allows staff to become specialised in a vast number of skills hence, fewer staff are able to accomplish the task of the organisation.

Weaknesses

The major problem that Tesla Motors has is a lack of adequate capital base on which to sustain its operational successfully. Despite having sales for its vehicles, the organisation is not making profits and is due to a low demand and high cost of sales, which are eating up the sales revenues.

The organisation is running on debt financing which is expensive and puts the company at greater risks of being taken over if they are not able to pay up its debts on time. The large research and development costs do not seem to bear profits at this time.

The Tesla car brand is not international recognised as compared to other brands such as the Toyota Prius. The organisation has focused on the higher end of the market, attracting only those with considerable resources to purchase the cars.

Opportunities

The opportunities for Tesla are enormous today especially with fuel prices rising, making life difficult for those who have cars that consume a lot of fuel. The car manufactures need to communicate the benefits of their vehicle to the entire car market since the benefits accruing with owning their cars far outweighs having a regular gasoline car. There is a ready market for small fuel-efficient vehicles also which the company has not tapped (Pollet, Staffell & Shang, 2012). Already the car manufacturer is in a sector, which few have tried to venture fully. Those car manufactures who have tried to venture either have hybrid cars of inefficient electric cars as compared to Tesla motors.

Threats

Other car manufacturers have greater financial resourced or sources, which could easily allow them to venture into the niche market, Tesla is viewed as a smaller inexperienced car manufactures are compared to the long term experienced car manufactures in vehicle sector. If other car manufacturer with greater capability for economies of scale to start making electric vehicles, this could affect Tesla revenue sine the organising is not able to manufacture as cheaply as those who are established worldwide.

Tesla Motors Competences (Porters 5 Forces Analysis)

Porters five forces as seen in figure 3 below is useful in assessing a business sector to find how attractive the sector is and who has influence in the sector.

Tesla Motors Porters
Tesla Motors Porters

Figure 3: Porters 5 forces Analysis Model

(Sourced from: Porter, 1981)

The Threat from New Entrants

The sector which Tesla Motors company is in has challenges for those who want to enter that market segment. The capital expenditure needed for this electric vehicle sector is very high and keeps new business away from this sector. The only business which may find it easy to enter this market are those existing car manufacturer that have large resources readily available as well as have the capacity to venture fully into this sector.

The Bargaining Power of Buyers

Tesla is a vital company in the electric vehicle sector and today they have a very solid relationship with their customers. Since the company has invested a lot of money and skill in research development, they have been able to manufacture quality products, which are useful for companies such as Daimler, and Toyota hence Tesla Motors power is very high. Tesla has a manufacturer, produces cars which are unique and scarce hence, with increased demand likely to set in the market, they will have considerable power thought, this is only vital if they are able to generate awareness of their brand.

Threat of Substitution

The threats of substitution are the Tesla Motors market segment can be seen from hybrid cars, diesel cars as well as other electric cars and solar power cars. There are also substitutes arising from people choosing to ride buses, trains as well as use bicycles instead of purchasing an electric vehicle.

The Bargaining Power of Suppliers

Since Tesla Motors is highly dependent on its suppliers and this is due to adopting lean management system where parts sought when an order is availed. This means that the suppliers have a higher bargaining power. If the suppliers do not bring the raw materials in time, Tesla is likely to suffer as a result.

The Intensity of Rivalry in the Industry

The global car sector is fiercely competitive with car manufactures competing on a global platform with different categories of their products to cater for different clientele. In the electric vehicle, sectors server car manufactures have created cars, which have not been able to meet the standard of Tesla though; companies such as Nissan have created compact affordable electric cars, which are selling in different countries.

Porter’s five forces show a growing threats to the Tesla car company if they do not work quickly and cater for other segment. This threat can only be from already established car manufacturer. The sector is still inaccessible due to the high capital-intensive investment an organisation will have to undertake and the skill needed to ensure an organisation is competitive.

Conclusions

This case study features Tesla Motors a company that was set up to create in 2003 as a revolutionary car business using the latest technology as its competitive advantage. The car was able to conceptualise and create an independently electric vehicle known as the roadster. The company’s revolutionary cars are set on a global stage, as a car with moves without the conventional fuel. The external environment scanning undertaken through PESTEL analysis of the organisation revealed that the organisation had greater opportunities to enhance their business with support from the American government. The international analysis undertaken using the SWOT analysis revealed that organisation has inherent weaknesses, which saw the company perform in a sector, which is very lucrative due to a lack of adequate finances. Threats in the electric vehicle sector were seen to arise from existing car manufacture, with greater competences as well as finances to build electric vehicles even cheaper than Tesla. Porters 5 forces analysis that was undertaken on Tesla Motors revealed that the sector was very hard to enter by new players in the sector. This was due to the high capital intensity the sector demanded as well as the skills necessary for a business to actually undertake the business successfully. The case study also showed that Tesla Motors strategy was more focused on the upper clientele of the car market with quality, better performance as well as expensive vehicles, which used electricity as compared to petrol.

Recommendations

Tesla was advised by its customer to manufacture a car that was of a lower price but the company has still manufacture a car that is half the cost of its pioneer car thought still relatively high for many to purchase.

Since Tesla is in a sector, which has the highest potential in the vehicle sector, the organisation should find ways of building a cheaper option, which can be bought by a number of people worldwide. Since the companies cars are of the best quality, in order to capitalise on this aspect, selling on mass production could be more beneficial to producing on demand. It is better to derive fewer profit margins and sell more cars, which then equates to a greater profit as compared to selling premium, which affects demand. With threats evident as existing car, companies have started embarking into electronic car sector, this is poised to destroy Tesla cars in the market if those car manufactures are able to manufacture and sell at a cheaper price. This is an aspect Tesla should not forget and having beautiful expensive cars does not equate to profits but rather having a car, which has demand.

The company’s strategy on focusing on premium cars and attracting the rich to purchase their cars is failing with little or no demand. The rich have the capacity to purchase any other car despite the consumption and hence, a change to their focus can create changes to the financial reporting. Coming out early and capturing a greater market share will hinder even existing car manufacturer from venturing into Tesla niche market. The organisation should come out with different models from compact small cars to their SUV since this is a car concept which any individual is unlikely to pass out.

Tesla should embark on selling key part to other car manufacturers to ensure they have a steady stream of revenue apart from selling their cars. This ensures that the car manufacture remains relevant even with increased competition, which is set to grow in the coming years. Being in the forefront or provision of vital innovative electrical parts for car manufactures can even bring in a greater percentage of revenues. Samsung Company has been able to remain competitive as a result of producing vital parts for iPhone which is a major rival.

Tesla should continue with its research and development and produce batteries, which are able to take the car further as well as reduce the time it takes to charge the car batteries, which many view as a challenge when using electric vehicles.

Most importantly, Tesla needs to create awareness of its products to the international market not just in American and Europe. There are many government and organisation, which could benefit from having a car that utilises less harmful substances as compared to petrol of diesel. A greater percentage of the revenue should be spend in advertisement and education on harmful carbon emitted in petrol and diesel consuming cars.

References

Business and Management: 4th November – 11th November 2013, – PESTLE Analysis (2015) Business and Management: 4th November – 11th November 2013, – PESTLE Analysis.

Doing a SWOT Analysis to Focus Your Marketing Strategy (2015) Doing a SWOT Analysis to Focus Your Marketing Strategy.

Ehrler, C., Gillis, J., Huesemann, M., Sandoval, M., & Turckes, L., (n.d) Tesla Motors: charging into the future? Case 29 1(1) pp. 381-395

Environmental-protection.org.uk, (2014) Car Pollution | Environmental Protection UK.

Fisher, D. (2014) Tesla’s Elon Musk Learns An Old Lesson Fighting Protectionist Dealer Laws.

Hill, T., & Westbrook, R. (1997) SWOT analysis: it’s time for a product recall. Long range planning, 30(1), 46-52.

Pollet, B. G., Staffell, I., & Shang, J. L. (2012) Current status of hybrid, battery and fuel cell electric vehicles: from electrochemistry to market prospects. Electro-chimica Acta, 84, 235-249.

Porter, M. E. (1981) The contributions of industrial organization to strategic management. Academy of management review, 6(4), 609-620.

Tesla Motors, (2014) About Tesla | Tesla Motors.

Wunch, D., Wennberg, P. O., Toon, G. C., Keppel Aleks, G., & Yavin, Y. G. (2009) Emissions of greenhouse gases from a North American megacity. Geophysical Research Letters, 36(15).

Yuksel, I. (2012) Developing a multi-criteria decision making model for PESTEL analysis. International Journal of Business and Management, 7(24), p52.

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Business Strategy John Lewis

Business Strategy and Sustainable Development – John Lewis Partnership

John Lewis Partnership is considered one of UK’s major retail businesses that have over twenty seven departmental stores and a hundred and six Waitrose stores. The enterprise is owned and operated as a partnership entity and the first store was set up in 1864 with Waitrose chains coming up in 1904. The first trust settlement was established in 1929 when the business gained a legal entity and profits became available for distribution to all partners; employees. The owner, Spedan Lewis sacrificed his personal business to fulfill his vision of establishing a business owned and run by employees as part of promoting ‘industrial democracy’ in the business.

In 1950, the partnership trust was transferred from a settlement trust to a legal Trust company under the name; John Lewis Partnership Trust Limited. In this arrangement, the Trust company would be under the Trust Chairmanship and his deputy elected by the three governing councils. John Lewis partnership is also regarded as Britain largest worker co-ownership business with more than 63, 000 permanent staffs as partners in the business. In this arrangement, the staffs share business profits and participate in important decisions for the enterprise development. The staffs’ commitment has seen the retail giant garner a unique competitive edge for over seventy five years with unparalleled growth.

One of the major aspects that have propelled the business to greater heights is due to a partnership approach based on understanding that profit is the main aim of business. Another important aspect that has propped the enterprise to its position is a business partnership model anchored on the principle of social economy and the integration of workers as company partners. All these have shaped the structure and principle of the company into a cooperative ownership that shapes the company policy and development.

John Lewis partnership has a legal form based on governing partnership and at no time are business operations directed by shareholders quest for profits but principles of the members’ happiness as enshrined in the partnership constitution. In particular, workers happiness comes from good job performance in enhancing successful business. The partnership constitution has ‘responsibilities and rights’ which enjoins the workers obligation of good job performance with overall betterment of the business for their benefits.

Evaluating John Lewis Partnership principles of conscious capitalism

John Lewis partnership is governed through principles of power, purpose, members read and profits. The principle of  purpose dictate that the aim of the partnership is to promote, enhance and facilitate the happiness of its members through their work as employees in the business and as managing members of the business success. The partnership is based on trust and each member shares genuine responsibility of ownership and rewards that are accrued from the business entity such as knowledge, power and profits.

Conscious Leadership

At John Lewis, all employees are co-owners in the business a democratic management structure run the business. Power is held in esteem by John Lewis partnership and there are three governing authorities that share power; the partnership Board, the Partnership Council and the partnership council. The principle of profits in the partnership dictates that, the enterprise make more profits through its trading operations in order to sustain its commercial prominence, finance development activities and distribute part of the profits to members. Furthermore, the principle of profits making aims to enlarge the enterprise returns that enables the business engage in other activities in accordance to its goals.

Under the principle of members, the partnership constitution is to increase more employees who are competent and committed to working and supporting the enterpri9se principles. In the principle of membership, courtesy, mutual respect and equality among the different members is highly encouraged. The aim is to enhance and encourage individual contributions fairly and reward each accordingly.

Evaluate the principles of conscious capitalism

The concept of conscious capitalism refers to establishing enterprises that implement practices which benefit people and the environment (Mackey, 2013:123). The concept of conscious capitalism is tied to conscious business that is gaining popularity in the modern age especially with regard to increased demand for corporate social responsibility by many business enterprises. Conscious capitalism is ‘values-based’ economic values that push for social and environmental concerns for business as they pursue their economic interests (Baron and Cayer, 2011: 344). The principle of conscious business is driven by the belief that when conducting business, it is not just for profit but facilitating social environmental responsibility for the general good.

Principle of Conscious Culture

Besides a democratic management structure, John Lewis has upholds the principle of radical transparency when conducting all business operations. All employees (co-owners) share, inquire, criticize and tell the management all that is important (Laszlo and Zhexembayeva, 2011:156). Each partner has a priority to voice any aspect deemed necessary regardless of age, education or experience.

Another aspect of conscious culture at John Lewis is its conscious consumerism through socially responsible investments (Zender, 2015). Ideally, the principles of conscious capitalism are based on certain criteria that demand businesses do no harm while undertaking their enterprise operations. One principle of conscious capitalism is that the products and services of business enterprises should never be harmful to the environment or people. This requires business to have mechanisms that forestall social and environmental effects while doing business as well as adopting beneficial social and environmental practices (Korschun, Bhattacharya and Swain, 2014).

Another principle of conscious capitalism is the triple down line model of doing business. Under the triple down model of doing business, the aim is to promote positive value in domains such as the planet, profits and people (Mackey, 2013:123). Profits are what distinguish an entity as a business and not social enterprises. As such, the degree to which an organization has adopted ‘conscious capitalism’ may be reflected in how it utilizes part of the profits for social and environmental welfare. In modern firms, there is a tendency to utilize part of the profits accrued in business for social welfare through donations or establishing an organization foundation whose purpose is social welfare; a good example is the Aga-khan Foundation, Bill Gates Foundation among others.

In line with the principles of  ‘conscious business’ firms that have an understanding of conscious capitalism should desist from accumulating profits through illegal means or deceitful operation practices such as failing to pay employees, poor working conditions or supporting harmful causes. For instance, the recent revelation that HSBC Swiss Bank has been evading tax cuts is an example of a business operating without conscious culture principles. The bank is alleged to have allowed bank transactions involving stolen oversees funds and this disqualifies the bank as being a ‘conscious business.’

A conscious business seeks to enhance the external and internal lives of its stakeholders (shareholders, clients, neighboring community and importantly its employees). In addition, a conscious business should benefit its other stakeholders such as the suppliers, creditors and humanity at large globally. Business enterprises embrace consciousness by forming welfare workplace programs, fair trade in manufacturing and assisting the general community with outreach programs. A business that is conscious aims to reduce the effects of its business operations on the environment in various ways such as engaging in recycling, using renewable energy and working with environmentally conscious partners.

Furthermore, businesses that are conscious use their resources in benefiting the environment and the society through direct or indirect programs related to the distribution of services and products. It has become increasingly important for businesses to reflect their ‘conscious capitalism’ spirit in the way they treat their employees and other stakeholders. Businesses are increasingly reflecting their consciousness through their company missions and values. In particular, paying employees well, donating services and products to non-profit organization is considered a good conscious business spirit. Operating under the spirit of conscious capitalism model pushes the fortunes of a business up by projecting a positive role of improving humanity in the society.

Conscious capitalism helps business to create value and ethics of economic exchanges, elevate humanity existence and creates prosperity by lifting people from poverty. In addition, when business operates on higher purposes other than the pursuit of profits, businesses creates value for all stakeholders, eliminate tradeoffs and elevate performance. The key pillars to conscious capitalism is having; higher purpose, stakeholder integration in the business, conscious leadership, management and culture (Rooke and Torbert, 1998). Neglecting one pillar would lead to jeopardized principle of conscious business. Examples of companies that have successfully embraced conscious capitalism are Google, POSCO in South Korea, Patagonia among others. These companies have created win-win situations for their customers, suppliers, employees, the general community and the environment.

Although conscious capitalism is related to corporate social responsibility, the two are different, Conscious capitalism purposes on creating value for the community stakeholders through actively engagement in business decisions as opposed to engaging them in periphery business programs (Fialka, 2006: 4).

The principle of conscious stakeholder integration

John Lewis Partnership is an example of conscious capitalism on many fronts. First, the partnership is based on conscious purposeful principles whose objective is promoting social economy (Mackey, 2015:1). By developing a co-ownership with workers is one important tenets of conscious capitalism employed by the partnership. Employees are important stakeholders in any organization and play critical roles in the success of an entity (Burden and Warwick, 2013: 3). It is common knowledge even among the company shareholders that employees are the cogs that support the organization in achieving its objectives and goals.

John Lewis Partnership is keen in building transformative relationships and co-develops solutions with all key stakeholders. John Lewis progressively builds transformative relationships with clients, employees, the local authority and charity organizations in its pursuit of sustainable business. In this way, by integrating the interests of all its stakeholders in the core of business activities, John Lewis is an example of a conscious capitalism.

Although organizations may boast of effective leadership, without competent and committed employees becomes an exercise in futile for mangers. Employees’ posses’ important skills and experience on areas that need improvement in the firm based on their day to day interaction with the various aspects of an organization. As such, having competent, committed and selfless employees is not easy and many modern firms are spending heavily in incentives and welfare programs meant to boost employees’ morale for performance (Mackey, 2015:1). Although these employee betterment programs are related to the principle of conscious capitalism, they are less effective in taping employees’ contribution to the firm. John Lewis might have done a critical assessment on these issues prior the development of a co-ownership with thousands of staffs at the retail enterprise. Enjoining employees in business ownerships serves many advantages. One is that employees contribute selflessly and actively in shaping the firms development policy based on their day to day work. Employees are not only motivated to work hard for the business but consistently strive to innovative new ideas that will benefit ‘their’ business.

In addition, the aspect of ‘owning’ the business and being part of decision making helps to improve employees motivation, cooperativeness and overall a corporate culture of harmony (Hind, Wilson and Lenssen, 2009: 23). John Lewis notes that, by enjoining thousands of his staffs in the business, he promoted ‘industrial democracy in which each employee has a fair equal responsibilities and rights in the affairs of the organization. The key pillar in John Lewis Partnership is promoting the happiness of its members who are employees. Human resources studies have found that, motivated and happy employees means happy customers and subsequently increase in sales returns (Somerville, 2013: 2). As such, by promoting the a conscious capitalism approach that focuses on improving employees happiness, the Partnership is a win-win model; employees will strive to make clients happy in return for good business to their partnership business (Abergene, 2005: 23).

Furthermore, by enjoining the employees in the business, this helped improve their welfare by raising their income thereby improving their social economy. In this way, by focusing on the general welfare of employees, John Lewis serves as an example of working ‘conscious capitalism’ enterprise. John Lewis is a good example of a ‘conscious business’ through its conscious management and leadership (Hind, Wilson and Lenssen, 2009: 23).

The Partnership enterprise is government by a well-structured constitution that establishes three centers of authority. These centers of authority promote democracy in the management and running affairs of the business especially in decision making; all employees are members while assessing the business problems. In this way, John Lewis partnership serves as an example to other businesses on what true conscious capitalism means.

Although modern firms allege to have conscious business, employees do not take part in decisions making and are often used as tools to achieve end goals. An example in case is Barclays bank that boast of a ‘conscious business’ but has been implicated with cases of employees mistreatment, underpay and contributing resources to programs that have hazardous effects on the welfare of humanity at large (Smith, 2013: 2). At John Lewis Partnership, employees have absolute freedom of openness in the management of the business; employees can inquire report and raise criticism based on actions deemed unsuitable for the business (Brown, 2012: 73).

Employees’ share business rewards, power and knowledge at the partnership and this has enhanced the firm have a competitive edge against conventional business those that treat employees as mere operational cogs in a business. All employees have equal opportunity to promote their potential and hold principle management positions in the Partnership Council. The management structure and organizational culture allows for two ways decentralized communications among the members. In this way, no individual feel neglected or out of the management structure (Lin, Hu S-y and Chen M-s, 2005: 534).

Another aspect of ‘conscious capitalism’ exhibited by the partnership is that, it does not condone or take part in social positions, sex, gender and political favoritism.’ This is a rare feat of ‘conscious capitalism’ especially in the modern world where most businesses take positions in social, political and religious matters (Burden and Warwick, 2013:2). According to Mackey (2013: 123), business enterprises project conscious business by contributing to the larger community in which they operate. At John Lewis Partnership the entity contributes to the general community in distinct ways. In particular, the enterprise has established links with Schools, local authorities, charitable institutions and other stakeholders in the community as part of giving back to the community (Shumate and O’Conner, 2010: 580).

John Lewis Business Strategy
John Lewis Business Strategy

John Lewis Partnership has important community outreach activities include the Partner volunteer work, charitable giving and development, customer panels and others. The principles established by John Lewis are strong indictors of a business operating under the principles of conscious capitalism. In particular, the entity main objective is to make more profits not for the purpose of enriching private shareholders but for the general good of partner members and the society at large (Korschun, Bhattacharya and Swain, 2014).

In summary, it is evident that the John Lewis entity was not formed with the sole aim of profit making but to facilitate social economy for members and the society at large. John Lewis Partnership serves as a good example of a conscious capitalism through its interest in the welfare of its employees and other stakeholders such as suppliers, having a conscious management structure, leadership, and democratic work culture and spreading the fortunes of the business to surrounding communities.

Conclusion

Conscious capitalism is an important aspect for modern business. The principle of conscious capitalism enables business organizations to surmount myriads of problems associated with employee management, stakeholders’ relation and projects a good role model in the society. Conscious capitalism facilitates free enterprise capitalisms that uphold social and environmental interests beyond economic interests. Conscious capitalisms is inspired by the need to improve humanity welfare, create business value to all stakeholders and improve organization performance competitiveness against conventional enterprises. Conscious capitalism is pillared by stakeholder integration, having conscious leadership in organizations, conscious management, conscious working cultures and creating value for the general community at large.

John Lewis Partnership is a good example of a successful ‘conscious capitalism’ that enjoined its employees as co-owners. The principles adopted by John Lewis have enhanced the firm uplift the welfare of its employees, suppliers, shareholders and the general community at large. Conscious capitalism is inspired by the need to improve social and environment needs in line with achieving economic gains. In short, conscious capitalism is means through which the ends goals of company profits are increased due to improved social reputation. John Lewis Partnership is a creation of conscious capitalism and this has enhanced the enterprise to remain competitively profitable as the largest retail store in UK.

References

Baron, C. M., & Cayer, M. (2011). “Fostering post-conventional consciousness in leaders: Why and how?” The Journal of Management Development, 30(4), 344.

Brown, B. C. (2012). “Conscious leadership for sustainability: How leaders with late-stage action logics design and engage in sustainability initiatives.” Dissertation Abstracts International, 73(07A), UMI No. 3498378.

Fialka, J. (2006).  “Some Companies Move From Opposition to Offering Proposals on Limiting Emissions. “Politics & Economics: Big Businesses Have New Take on Warming”. Wall Street Journal. p. 4.

Hind, P., Wilson, A., & Lenssen, G. (2009). “Developing leaders for sustainable business.” Corporate Governance, 9(1), 7.

John Mackey (2015): “Why Companies Should Embrace Conscious Capitalism” Forbes.

Pete Burden and Rob Warwick (2013). “Exploring Conscious Business Practice: Sensing as we act reacting to what we sense” AMED.

Korschun, D.; Bhattacharya C. B.; Swain, S. D. (2014). “Corporate Social Responsibility, Customer Orientation and the Job Performance of Frontline Employees.” Journal of Marketing 78 (3): 20

Rooke, D. & Torbert, W. R. (1998). “Organizational transformation as a function of CEO’s developmental stage.” Organization Development Journal, 16(1), 11-28.

Smith, Nicola (2013). “Corporate social responsibility: Power to the people”.

Shumate, M; O’Conner, A. (2010). “The symbiotic sustainability model: Conceptualizing NGO-corporate alliance communication”. Journal of Communication 60 (3): 577–609.

Somerville, Michael (September 13, 2013). “Nearly half of Britons would buy more from a store that supports charity”

Zender Tom. (2015). “Discover the power of consciousness in your business.” Phoenix Business Blog.

Abergene, Patricia (September 2005). Mega Trends 2010: The Rise of Conscious Capitalism. Hampton Roads Publishing Company.

Mackey, J. (2013). Conscious capitalism : liberating the heroic spirit of business. Boston Mass.: Harvard Business Review Press.

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Effective Managers Born or Made

Effective Managers Are Leaders Born or Made?

Research Title: Effective Managers. “It is often believed that effective managers and problem solvers are born rather than made and have a kind of magical power to understand and transform the situations they encounter. If we take a closer look at the processes used, however, we find that this kind of mystique and power is often based on an ability to develop deep appreciation of situations being addressed. Skilled leaders and managers develop the ability of reading situations with various scenarios in mind and of forging actions that seem appropriate to the understandings thus obtained” (Morgan, 2006).

The major task of the leader is to bring their followers from where they are to where they have not been. Acting like a manager and problem solver is an enormous job. The good and worst manager is remembered by the people throughout the history. From many years people are debating whether the effective managers are born or made. Some researchers believe that the effective managers are born with the necessary personality traits that make them successful (Bernard, 1926). On the other side most of the researchers has a firm belief that the effective managers are made. (Bernard, 1926; Blake et al 1964, Drath et al, 1994; Fiedler, 1967; and House et al, 1974) Let us assume that effective managers are the person born with the abilities to inspire and influence others. We can take a simple example on this statement. Sometimes we see a little girl influencing her brother and parents with their inherit abilities to do the things she wants to do.

If we take effective manager as a person who is courageous and willing to speak for the betterment of the people around him than we can say that the effective managers and leaders are born. In our surrounding we can see people who are introvert and are always in followers by nature but sometimes at a particular situation about which he was passionate will prove himself a good leader or effective manager. So by this we can assume that one can become effective manager by continues training and experiences. Saal et al (1988) stated that leadership is not necessarily in born, some skills could be taught to employees to make them an effective leader.

 This issue is still inconclusive although many researchers have found that the effective managers are made not born. In previous years many theories has been given to reach at a specific point. Some of the most known theories on this issue are: Great man theory, Trait theory, and behavioral theories.

Great Man Theory

According to this theory the leaders are different from other human beings. They do not need to develop intellectual brain to lead, but they have the right set of inherited capabilities which is not equally present in all the human beings. The basic assumption of this theory is that effective mangers are born not made and they contain some inherited traits that make them successful. These great people arise with the need.

A lot of research in 19th century was based on this theory. Most of the researchers have developed a link between the Great Man theories and the work of Thomas Carlyle who was a historian. He revealed that the leaders are the person who has naturally gifted capabilities and can capture the imaginations of the masses in a better way.

In earlier times it was considered that the qualities of effective manager is associated with man and this theory is named as a great man theory but in later year when so many great woman emerged as a effective manager that named the theory Great person theory.

According to the great person theory some person born with the necessary qualities that distinguish them with other persons. These inborn traits of a person make him responsible for the position of power and authority. This theory claimed that an effective manager within born attributes can achieve the goals for their followers by facing all the obstacles in his way. This theory implies that those who are at the positions of authority and power are just because of the gifted attributes they have. Moreover this theory also argues that these gifted traits of the effective manager remain stable over the period and in different groups.

Trait Theorists

Trait theory is basically all about the characteristics of the effective manager. This theory relates to the physiological characteristics including appearance, height and weight, demographics i.e. age, income and education, personality, self-confidence, intelligence and social characteristics with management effectiveness. Successful managers have some characteristics and traits that make the manager different from the unsuccessful manager. Researchers in 20th century have identified the set of the traits that are responsible to make an effective manager. These traits are achievement drive, motivation, honesty, self-confidence cognitive ability, knowledge about the practical things, creativity charisma and flexibility. An effective manager with good judgment, strong analytical skills can better solve the problems of any situations.

This theory is a naturally pleasant theory that tells us about the elements that make the effective manager and the leader. Trait theory of leadership has a great implication in all types of organizations and all positions. By utilization of information given in the theory people can evaluate their position and determine how they can make their positions strong.

Stogdill (1974) claimed that the people who are effective managers have right combination of attributes including achievement-orientation, ambitious and determination.

The trait approach gives rise to the issue that the effective manager is born or made or whether it is an art and science. According to the trait theory sometimes we can consider effective manager and leader an art but still there is a need of some skills to be successful. Even if there are some in born characteristics that make the person an effective manager still some kind of development and encouragement is also need to make him a successful leader.

Behavioral Theories

Behavior theory is based on the assumption that the leaders are made rather than born. Effective managers are basically the learnable behavior. Behavioral theories not actually based on the inborn traits and rather this theory focuses on the actions of the managers and leaders. This theory stated that it is easy to learn than to adopt the short-lived traits. Behavioral theory is contrary to the trait theory. Behavioral theory assumes that the effective manger and problem solver capabilities can be learned but trait theory assumes that these capabilities are inherited. This theory has opened the flood gates to the leadership development.

Leaders are born

The idea that leaders are born rather made is given by the two well-known theories great man theory and the trait theory. Robins et al (2006) stated that every person personality is comprised of unique psychological characteristics. This uniqueness make person different from the others in the sense of their reactions towards the certain things and interaction with the people. This can be clearly observed in the person born with the leader characteristics-the certain make the leaders different from the non-leader. The great man theory argues that the great man and heroes are those who born with the abilities of chrism, intelligence and wisdom which they utilized in such a way that make them successful.

Example for the clarification of the Great Man Theory

If you will see an eagle running on the ground you will immediately find that an eagle is not good in running. This is because it is not naturally balanced and usually compensates it by sticking their wings out. The eagle is not appropriate for running, even if someone give him training. The training to improve the eagle running will not bring the improvement.

Leaders are made

According to the behavioral theories leaders are not born. Leaders can be developed by proper training and observations. Behavioral theories depend upon the actions of the manager not on the psychological or physiological characteristics. Cawthon (1996) revealed that the people born with equal abilities and equal traits.

Knowledge and skills person learn directly contribute in the process of leadership, while the other personal characteristics make the leader unique. According to the process leadership theory people can chose to become the effective manager by learning leadership skills. Werren Bennis is a well know researcher of leadership. He believes that every person can become a leader through years of learning and experience.

Dr Carol supports this argument by saying that people can develop leadership skills by their dedications towards work and hard working. Moreover he said that intelligence and brain is the starting point of the leadership development. Powel said that the effective leaders are made not born. Effective leaders learn from the trial and error and from their experiences. They learn from their failure and use this learning in future for solving the problem.

Effective Managers
Effective Managers

What make an effective leader?

An effective leader does not need to be holding some specific attributes. Harry Truman the most effective executive in US do not have even one ounce of charisma. When Truman becomes the president of the US he knew that what he wanted to do. He found that after World War 2 he should focus more on foreign affairs. He started his work by taking tutorials on foreign policy. As a result he becomes the most effective president in the US foreign affairs. Similarly while working in some well-known business firms I found CEO’s who were not the stereo typical leaders. These types of CEO’s are all over the world. They are varying in attitudes, personalities, strength and weaknesses. They ranged from extrovert to introvert from easy going to controlling and from generous to economical in nature. This shows that it’s the inherited attributes that make the person leader but they follow some practices that make them an effecter manager.

Drucker (2004) stated that the Great managers can be charismatic or tedious, kind or miserly, creative thinker or numbers oriented. He stated that effective executives follow eight practices that make them the effective manager. These practices include what need to be done? What will be a write decision for the enterprise? They developed a detailed action plan. They took responsibility of making decisions and communicating to the followers. Their main focus is on the prevailing opportunities rather than problems. They arrange productive meetings and they thought as we rather than I.

Importance of emotional intelligence in leadership development

In our practical life we usually go through such stories that a person who was highly skilled and intelligent promoted to the leadership position and get failed and another person with limited skills and intelligence promoted to the same leadership position remain success full. Such anecdotes make our belief strong on the perception that the leaders are born. The personal styles of the leaders also very and in different situation different types of leaders usually emerge. Studies found that the most effective leader is the one with high degree of emotional intelligence. This argument doesn’t meant that intelligence and technical skills are useless in the leader development. They do matters but as a threshold capabilities. These are the basics requirement of the executive position. Goleman (1998) in his research claimed that without emotional intelligence a person cannot become a leader. He pointed out that a person with extensive trainings, analytical mind and endless supply of smart ideas cannot be a good leader unless he has high level of emotional intelligence.

Skills required for effective manager

Much research has been conducted in previous years to see the relationship between the individual trait and the effective manager. The most of the studies revealed that the individual trait alone does not guarantee a success flu and effective manager, Individual needs to learn certain skills according to the prevailing situations to become and effective leader. Kirkpatrick et al (1999) in their study on theLeaders: Do traits matter” revealed that the person traits is not the only thing that contribute in the success of the manager. They revealed that besides personal traits they need motivation, cognitive skills and the knowledge of the business. The result of the study is also consistent with the behavioral theory that the skills of the manger matters rather than in born traits. Stogdill also revealed that the any individual cannot become the leader by the virtue of the some traits he possesses. Stogdill research shows that personal or in born trait is universally associated with the effective manager, it the skills that person adopt in certain situations make him effective manger. Some of the skills that individual should learn in order to become an effective manager is discussed below.

Cognitive skills

Cognitive skills are the primary skills that are required for the effective leadership. These are the skills that are related to the basic cognitive capabilities. These are the skills include collecting, processing and disseminating information and learning. Communication skills like speaking are also important to convey the message effectively. Written skills are also important to learn for effective communication. To be an effective leaders need to develop active learning skills this enables leaders to work on new information and to learn its implications. These skills help managers to adopt behavior and strategies to solve non- routine problems effectively. Gilllen et al (1985) stated that the critical thinking is also an important aspect of leadership in order to analyze the strengths and weaknesses of different approaches of work. Kirkpatrick et al revealed that the manager must gather and integrate the enormous amount of knowledge about the functions of the business to become an effective manager. By getting detailed knowledge about the business, manager can effectively formulate the strategies, solve problems and make decisions.

Business skills

Business skills include the skills that are related to the functional area of the field of the leader. This includes the knowledge about the contexts in which individual work. Business skills also involve the management of the resources and operational analysis. In addition it also involves management or personnel resources to motivate followers for their work. The skills of managing financial resources also come in business skills. Harvard professor Kotter said that the expertise in business is more important the knowledge.

Interpersonal skills

The term social skills refer to the person’s ability of making relationship at the workplace. People with high social skills are found to be mean-spirit. Socially skilled person has wide connections. They have the ability of finding common ground in people of different types. They work on the assumption that nothing can be done alone. These types of people have a detailed network of the people that they can use at the time of action. In every company social skills is considered to be the key capability of the leaders. To be an effective leader a person should develop its social skills. No leader is the island. After all the work of the leader is to get things done by the people and it is not possible without the required social skills.

Strategic skills

The strategic skills are the highly conceptual skills. These skills are needed for the understanding of complexity, dealing with ambiguities, and influencing the organizations. Strategic skills include planning-related skills of imagining the systems and problems in different situations. The environment scanning skills is also an important skill that individual should learn to become an effective leader. Environmental scanning skills are related to the identification of downstream consequences and identification of key causes of the problem. These strategic skills also contains some problem solving components including problem identification this help in determining the true nature of a problem that is faced in the organization. Effective leaders also need to learn the solution appraisal and objective evaluation skills in order to evaluate the solution of a problem in an appropriate way.

Organizational culture and Leadership development

The role of culture in making of a leader gets overlooked. The culture of the organization also plays an important role in supporting and hindering the development of the leader. Organization culture is basically the values, beliefs, rules and practices of the organization. Most of the managers do not account the role of culture while making a leader in their organization. The most considerable reason of neglecting culture influence in the development of the leader is their wrong understanding about their culture. But failing to understand the role of culture in making the effective manager can be costly.

Some executives have a wrong perception that sending managers in the leader development program can produce better leaders that can handle the challenges in a better way. But there is more to do with the managers to make them an effective lender. To build an effective manager, organizations need to focus on the context in which the development of the leaders takes place. Organizational culture is the more significant part of the context. For making a good leaders organizations needs to assess the drivers and the culture of the organizations.

Role of Work motivation in building effective managers

Motivation is the psychological and physiological urge of the individual. Motivation helps in activating the behavior and drive that helps in achieving some goal and objective. The motivation level of the individuals very situation to situation. The situations in which individuals are working have an influence on the level of motivation. There are certain ways in which the motivation level of individuals can be improved. These factors are important in making the effective manager

Job enrichment

Organizations who want to develop effective manager must design their jobs in such a way that increase achievements, recognition, responsibility and growth. The work assigned to the managers should be compromised of work contents, greater use of skills and increased authority.

Flex time

Organizations should provide employees with flexi time. This flexi time will help the manager in determining their own work schedules. Providing flexi time with the core time will help in developing effective manager.

Quality circles

Some autonomous work groups should be defined that meet on daily basis to solve some problems. By the help of these groups they will exchange their experiences and ideas on problems. This will help the managers in learning from other experiences and skills.

Organizational reward system and effective managers

The organizational reward system has been found strongly related to the development of the effective manager. Fair pay benefits and promotions motivate the managers to learn new things and to develop the skills. Employment recognition system is an effective tool of making the effective manager. When organizations give recognition and rewards for the task they performed they will motivated to repeat their efficiency in the future days.

Problem solving

Middle and senior level management are seems to be more engaged in problem solving. The results of the problem solving are dependent on the allocation of the resources and work results. The situations in which the problem solving activities are take place are often complex, unstructured and non-routine. Sometimes the problems occur are beyond the control of the manager. Managers lacking in sufficient life experiences and training found problems beyond their control. Effective managers normally follow some steps in order to solve a particular problem. In First step manager identify the problem by gathering and evaluating the information. After gathering the information regarding the problem managers makes logical assumption based on their prior experiences. Tentative alternate solutions are developed and each alternative is than considered in depth. On the basis of decision criteria each alternative is evaluated by the manager. Only that alternative is selected which best fit with the criteria. After selection of the best alternative the solution is implemented. The results of the solutions are evaluated with time.

Conclusion

After the thorough review of the theories and literature it is evident that we cannot support a side and negate the other side when it comes about the discussion of whether leaders are born or made. The studies show that the both in born characteristics and the skills adoption is important to become an effective leader. Leadership can be learned by many ways but cannot be taught, Leaders learn 80 percent of things from their job. They learn by monitoring others leaders, by taking feedback, by coping with the multiple situations. Leadership is basically the life time learning.

The insight on the previous literature shows that trait is not alone sufficient for making an effective manager. These are the only preconditions of becoming an effective manager. An individual with certain traits needs to adopt certain skills and knowledge to become an effective manager. Possessing some traits enable the individual that he can also become the effective manger by adopting some required skills.

Leadership can be something an art but application of special skills and techniques are required in order to be successful. Even if there are certain inborn qualities that make one a good leader, these natural talents need encouragement and development. A person is not born with self-confidence. Self-confidence is developed, honesty and integrity are a matter of personal choice, motivation to lead comes from within the individual, and the knowledge of business can be acquired. While cognitive ability has its origin partly in genes, it still needs to be developed. None of these ingredients are acquired overnight.

These executives need to accomplish the importance of the culture in the development of the leaders. They need to factor the organizational culture in a way that helps in building leaders. Organizations need to understand their culture. By thorough understanding of their culture organizations can determine that which factors in their culture can hinder and enhance the development of the organizations.

In a nut shell we can say that in born attributes is the pre-condition of becoming an effective manager but to become successful leader individual should adopt some skills relevant to their business. Although a leader born with set of qualities that make it different from the non-leaders but there is an influence of other environmental factors in making him the one of the successful and effective manager.

References

Bernard, L. L. (1926).  Effective Managers An introduction to social psychology. New York: Holt.

Blake, R. R., Shepard, H. A., and Mouton, J. S. (1964). Managing intergroup conflict in industry. Houston, TX: Gulf Publishing Co

Brungardt, C. (1997). The Making of Leaders and Effective Managers: A Review of the Research in Leadership Development and Education. Journal of Leadership & Organizational Studies, 3(3), 81-95.

Behavioral Theory. Changing minds and persuasion — How we change what others think, believe, feel and do.

Cowley, W. H. (1928). Three distinctions in the study of leaders.. The Journal of Abnormal and Social Psychology, 23(2), 144-157.

Cawthon, D, L, (1996). Effective Managers and Leadership: the great man theory revisited, Business horizon may-June,1-4

Cherry, K. Trait Theory – Trait Theory of Personality. Psychology – Complete Guide to Psychology for Students, Educators & Enthusiasts.

Drath, W. H., and Palus, C. J. (1994). Making common sense: Leadership as meaning-making in a community of practice. Greensboro, NC: Center for Creative Leadership.

Day, D. V. (2000). Leadership development: A review in context. The Leadership Quarterly, 11(4), 581-613.

Goleman, D. (1995). Effective Managers and Emotional intelligence. New York: Bantman.

Great Man Theory of Leadership. Management Study Guide – Free Training Guide for Students and Entrepreneurs.

House, R. J., and Mitchell, R. R. (1974, Fall). Path-goal theory of leadership. Journal of Contemporary Business, 3(4), pp. 81-98.

Horner, M. (1997). Leadership theory: past, present and future. Team Performance Management,, 3(4), 270-287.

Johnson, A. M., Vernon, P. A., McCarthy, J. M., Molson,, M., Harris, J. A., & Jang, K. L. (1998). Logo Nature vs. nurture: Are leaders born or made? A behavior genetic investigation of leadership style. Australian Academic Press, 1(4), 216-223.

Kirkpatrick, S. A., & Locke,, E. A. (1991). Leadership: do traits matter? Academy of Management Executive, 5(2), 48-62.

Leadership Theories. North Georgia College and state University.

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Rowley, J. (1997). Academic leaders: made or born? Industrial and Commercial Training, 29(3), 78-84.

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Effective Leadership

Evaluate the philosophy of leadership within early years settings by critically analysing the characteristics and competencies of leadership. Ensure that you include why it is essential to have a leader who understands the importance of an effective and multi-disciplined team of staff

Title: Effective Leadership – Within this study, the topics being synthesized are the philosophy of leadership within the 20th and the 21st century. Furthermore, the skills and characteristics of a leader or manager are going to be synthesized, showing the reasoning behind having these certain skills.

Over the 20th and 21st century the term leadership has been changed several times and the perception of what a leader is has also changed. Extensive research has been taken under the topic of ‘leadership’, it has been discovered that through the 20th century there have been more than two hundred different meanings (Northouse, 2010). In the early 1900’s it has been seen that leadership was defined as the centre of power and domination and further down the line in the late early 1900’s the term was defined as persons having certain skills, values, motives and also being able to deal with conflicts (Northouse, 2010). However, Bonnici (2011) explains that leadership is about receiving praise, it is about being influential to teams and improving the student’s way of learning. Traditionally, leadership has been defined as a person having certain personality traits and qualities (Rodd, 2006). However, in recent research the definitions of a leader have been associated with shared ideas and working together (Dunlop, 2008)

Furthermore, Effective Leadership is perceived as inspirational, influential and charismatic, whereas management is about the organisational techniques and controlling things (Walker, 2011). Essentially, leadership is constructing and sustaining a vision and interpersonal relationships and management is monitoring activities and functioning (Davies & Burnham, 2003). There are many misconceptions of the term leadership and is usually mistaken as ‘Power’, this is down to the progression of influence (Northouse, 2010).

There are many general leadership theories and few well known. House and Mitchell devised the Path-Goal theory which is centralised on a model of motivation and is a part of the contingency approach (Burnes, 2004). The leader must provide the employees with support, confidence, and influential behaviour to feel able to attain their future goals (Burnes, 2004). There are two different situational contingencies within this approach; one being staff member’s individual characteristics and the second being the environment which they work in (Alanzi and Rasli, 2013). This theory involves around different situations and behaviour and how the leader’s motivation could lead to other staff being achievement-orientated (Alanzi & Rasli, 2013). However, there is a lot of debate whether path-goal theory is efficient within settings and Alanzi and Rasli (2013) explain further that good leaders will know and understand when and what approach to use when needed. Furthermore, Devader and Alliger (1986) discussed that using the Meta Analyst approach and self-report measures of 120 surveys and discovered that the evidence of its efficiency was infrequent. From the surveys that were conducted analysed, they discovered the environment and the task would not be adequate, it will not change the behaviourism (Devader and Alliger, 1986). Therefore this implicates that the behaviour of the leader will not affect the performance of the subordinates (Devader and Alliger, 1986). The weaknesses involved in the path-goal theory are lack of research and findings. However, Aubrey (2011) explain that the theory does not encourage the staff/team to act themselves as leaders when needed.

Psychologist Kurt Lewin formulated this style of effective leadership in the 1930s and many people followed his path. Lewin debated that there are three key aspects to the styles, these are Autocratic, Democratic and Lasseiz-Faire (Lussier & Achua, 2015). Lewin believed through his studies a leader is not solely based on personality traits but he moved towards different behavioural styles (Lussier & Achua, 2015). However, Lewin has also gained many criticisms of this three step approach and academic sources have noted that he has been progressively critiqued as only appropriate small scale alterations in stable environments and also stated that his model has issues of ignoring conflict and organizational politics (Burnes, 2004).

The autocratic style involves a leader who dictates methods of work and staff, struggles to involve staff in decisions of the setting and also limits the staff to doing different jobs (Khasawneh & Futa, 2013). This could be a leader is the owner of the business.). Therefore, this leader could be over-ruling to staff and lead parents/staff feeling under-valued (Johnston & Williams, 2012). Within an early years setting, it is vital that parents and staff feel welcome. If staff are not enjoying their job, this may lead to retention (Sadek & Sadek, 2004). Similarly, Sadek and Sadek (2004) explained that an autocratic leader is ‘like a spider in the middle of the web’, this could indicate that the leader is the only one with the control and power. Nonetheless, there are positives of the style such as the leader of the setting/business is the only one able to make decisions, also this could mean that the leader makes sure things run smoothly (Johnston & Williams, 2012).

The second of the style is democratic; this type of leader is able to welcome ideas and encourage staff to participate in all decision-making and closely watches/supervises (Lussier; Achua, 2015). A style like this could be welcoming, and staff may feel as though they are able to input their ideas as to what needs to be improved and sustained (Johnston & Williams, 2012). Lussier and Achua (2015) indicate that the democratic style increases the chances of staff feeling a valued member of the team, this will lead to present and future motivation and commitment. However, Johnston and Williams (2012) discuss that staff may misunderstand and feel as though the democratic leader may not have any true values or visions themselves. Furthermore, being a democratic leader in a setting will be more organised and have staff feeling valued to the leader (Johnston & Williams, 2012).

The third style is called ‘Laissez-faire’ which is also seen as non-directive and leaders who pursue this style may prefer to let the group of staff set their own goals. However, if problems arise within the setting, it is likely that they will be unable to get the staff back to being positive and motivated (Wood, 2012). However, leaders within an early years setting acting in the style of ‘laissez-faire’ could lead the other practitioners to become somewhat lazy and inefficient (Wood, 2012). In addition, Johnston and Williams (2012) state that a setting ran by a laissez-faire leader would come across and welcoming to children, parents and recruiting new staff. However, a setting ran by a leader who wants to work for an ‘easy life’ could also be seen as chaotic at times due to the lack of management (Lussier & Achua, 2015). Similarly, Wood (2012) adds on explaining that staff could lack in vision or no direction, also this could lead to future retention as the staff feel unsatisfied with the way the setting is.

Furthermore, Goleman’s research indicates that the visionary or effective leadership style is the most efficient and this is by making the vision everyone’s future goals (Burns, 2010). Leaders with this set style are able to connect with every individual in the workplace and know their capabilities and be able to give them time to grow and also how to achieve their goals (Mersino, 2013). Staff are able to benefit with this type of leader as they are able to tell them what they are doing right (Mersino, 2013). Visionary leaders heavily rely on the competencies, emotional intelligence, self-confidence, self-awareness and the ability to be empathetic to staff or others involved (Wood, 2012). In contrast, there are many issues with this style as Burns (2010) did not define how to be a visionary leader, this could come across as confusing. Furthermore, as this happened many researchers began to analyse the theory and show the cracks of it (Solan, 2008). Similarly, Bennis and Nanus (2003) searched further into the term ‘vision’ and researched into the behaviours of leaders with this style. They set out to do qualitative research and interviewed 90 different leaders. To add on Sashkin and Sashkin (2003) explained that Bennis and Nanus (2003) discovered that leaders have five different patterns of behaviour which were all down to trust, confidence attention and more.

One of the earliest leadership researches was based on characteristics of efficient leaders by Gregoire and Arendt (2004) who split these into a group of 5.

  • Surgency: – The traits being the individual characteristics and sociability.
  • Conscientiousness: – Dependability, the need to achieve and integrity.
  • Agreeableness: – Positivity, usefulness and connection.
  • Adjustment: – Emotional Intelligence, self-worth and strength of mind.
  • Intelligence: – Desire for knowledge, broad-mindedness and being learning orientated.

Since this approach based of characteristics, Jillian Rodd (2006) discussed personal assets of an early year’s leader. However, Jones and Pound (2008) indicate that characteristics, attitudes and skills are the base of an early year’s leader. Nowadays, researchers are following to think that the term effective leadership is now based solely about the interaction between leaders, staff, parents and agencies on the outside and also the emotional competencies between this (Jones & Pound, 2008).

Effective Leadership
Effective Leadership

Organisation is an important aspect of being a leader or a manager in a setting and this is because everything can be at hand. Practitioners that have a system in place for how they organize paperwork make it easier for inspections, to call people when in emergencies and also to look at different requirements for the children, for example, food requirements (Gabriel, 2005). Having paperwork at hand means that if anything goes wrong or they need to back themselves up by showing inspectorates that they have their filing systems up to date and showing that the staff are qualified up to standard (Gabriel, 2005).

Effective Leadership

A leader needs plenty of skills to be able to both manage and lead a setting. This includes many aspects such as assertiveness. Being assertive without needing to be may put the staff off their work and this may lead to possible retention (Stein-Parbury, 2013). However, being assertive for the right to be heard, valued and respected. Gabriel (2005) found within their research that practitioners were a lot better at being assertive in optimistic situations and this led to staff feeling appreciated and respected themselves. However, most of the research that has been done showed that assertiveness is usually seen in conflict and negative situations (Stein-Parbury, 2013). Furthermore, if an early year’s practitioner spoken to a staff member and told them to do something that they didn’t want to do, they would have to act assertively and also bring in an empathetic tone and let them know how it would help them move up and development (Stein-Parbury, 2013). Similarly, Maravelas (2005) explains that with high assertiveness, staff can become intimidated and undermined. On the other hand, she discusses that there is a low and high assertiveness and the lower toned assertiveness is used less (Maravelas, 2005).

Ofsted highlight the significance of having a strong leader within an early years setting which can influence how they are marked out of good and outstanding operations. The report also states that the visited settings have had few strong leaders who have the ability to self-evaluate and each staff being able to reflect on their own work (OFSTED, 2013). Furthermore, in the inspections, the leaders explain that it is vital to have staffs that are able to interact with the children effectively as it has a profound effect on the children’s development and learning (OFSTED, 2013). Ofsted created a survey that they gave to their ‘strong leaders’ and the findings were that they were inspiration to their staff, they were persuasive and passionate (OFSTED, 2013). Furthermore, the leaders were able to explain to other staff within the setting what strategies could work and why and also how this may be effective for children’s learning and development (OFSTED, 2013). Furthermore, due to the demand of “outstanding” schools and settings, there are many criticisms that OFSTED are facing, such as a member of the think tank explaining that “you’d be better off flipping a coin” and this shows that OFSTED are possibly becoming unreliable due to the amount of inspections that they are facing (Flanagan, 2014). In light of this, the inspections that OFSTED give are reasonable guidelines for schools and other settings. However, staff within a school may become pressured to do everything before the inspection as it is only once a year that it is done (Flanagan, 2014).

Blatchford and Manni (2006) explain that communication is key for all leaders working within a setting. Communication involves many factors, these include: reflecting, empathising, verifying, acknowledging, consulting and listening. Being accessible is vital for communication. Similarly, communication in the work place is vital, working with children involves a lot of communication as the job is pressuring and demanding, Making sure that everyone knows their role is especially important as the leader does not want the staff to make decisions without them and without consent to do so (Moyles, 2006).

In the early months of 2004, the government had dedicated themselves to use the United Conventions on the Rights of the Child (UNCRC). Furthermore, in 2011 the government devised a new law which is called the Rights of Children and Young Persons (Wales) Measure which also helps to confirm that the principles within this are actively used (Welsh Assembly Government, 2012).

There are also policies put in place to make sure settings such as nursery settings, family centres and child-minders have quality standards, such as nappy changing facilities (Welsh Assembly Government, 2012). One of the biggest of the policies is health and safety, Record keeping is also one of the health and safety standards. Records will consist of the parent’s contact details, the child’s health records (if there are allergies), medical administration, and statements on procedures in emergency, records of accidents (Welsh Assembly Government, 2012).

Over more than several years policies and governments have been changing the way they are working, especially with child care. Problems have risen within the past 20 years with mothers having to work and having to pay for childcare. It has been found that working parents pay more than twice as much for childcare than they do for food and bills (Lyus, 1999). Rutter (2015) has also found that 25% of families can afford to pay for full-time child care, whereas the other 45% rely on unreliable sources of care such as relatives, babysitters and friends (Lyus, 1999). In 2015 the family and childcare trust sent out a childcare cost survey and the findings were that parents still have to find the money to fund such necessities. Child care has risen for children under the age of two by 33% by the parliament (Rutter, 2015)

There a several different approaches to define leadership theory, for example the trait approach. Devader and Alliger (1986) established that traits of the personality were intensely related with insights of leadership. Furthermore, Kirkpatrick and Locke (1991) claimed that efficient leaders are diverse types of individuals in several ways. However, Stogdill (1982) had conclusions and his findings were that individuals will not become leaders because of certain personality traits that they have, but because they are able to be a leader in certain situations and then not necessarily be a leader in a different situation. Emotional intelligence is an important factor of our leadership skills; Devader and Alliger (1986) suggests that emotional intelligence entails two competencies which are personal and social. These include self-awareness, confidence and motivation (Northouse, 2010). However, the trait approach has several recognizable positives and has been researched for a century with theorists to back it up; secondly this approach shows what type of personality would fit a leadership role (Northouse, 2010). Nevertheless, the trait approach also has several weaknesses which could be critical, firstly it doesn’t state a definite depiction of the approaches needed to become a leader (Northouse, 2010). Furthermore, Stogdill (1982) implies that it is problematic to separate traits when there has been no insight to situational factors which is equally important as the leader might not lead in certain situations.

Since leadership has become wide spread within settings raising achievement in children, this is called shared / distributed leadership. This term is where a team within a setting are all active leaders other than the head leader (Lindon & Lindon 2011). Other team members have a role to play and it is their responsibility and feeling as they are capable to act as a leader in their own enjoyment (Lindon & Lindon, 2011). Distributed leadership is a well-known democratic theory, also in the category for ‘transformational leadership’ (Rodd, 2006), Moreover, this kind of effective leadership focuses on practice rather than delegation based on an individual’s expertise and encourages staff and practitioners to excel further and motivate them to work harder towards their goals (Rodd, 2006).

Lindon and Lindon (2011) explain that there are many misconceptions of the term and can be problematic within a setting. Distributed and shared leadership have separate meanings, the difference is that shared is that the leader delegates different roles to practitioners (Rodd, 2006). This would lead to effective partnerships within the work place, especially communicating with each other. Communicating is important when being a distributed leader and being able to listen to views of others, understanding and empathising with them (Williams and McInnes, 2005). Listening means providing individuals with their time and privacy and may require constant appraisal so that the staff feel invaluable (Williams and McInnes, 2005). Entrusting staff may be problematic, but with plenty of team working and outings, this may be reduced over time and staff time needs to be used efficiently (Williams and McInnes, 2005).

An example of shared/distributed leadership is family centres, such as sure start family centres. Becoming a leader within a family centre involves the ethic of care and sustaining caring relationships (Blatchford, 2006). Family centres involve multi-agency teams which consist of professionals within health care systems and supporting parents and children holistically. With extensive research in to ‘Sure Start’ family centres there have been many noted challenges. The challenges consist of: maintaining high quality services, leading through change, maintaining morale and motivation, increasing vulnerability, managing outside agencies (Rodd, 2006). Furthermore, family centres need staff that are able to form strong relationships by partnering with children, staff, parents and multi-agencies (Rodd, 2006).

There are many successes in working with multi-agencies, however there are also challenges. The children’s act (2004) brought out a plan to improve children and family services and emphasized the importance of integrated teams of educational professionals, health professions, social workers, job advisers and support for vulnerable parents and young people (Aubrey, 2011). Since the Every Child Matters Green Paper (2003) was devised because of the Victoria Climbie died from negligence and reports were made that on 12 occasions integrated services could have been able to help. This Green Paper is also along with the Children Act 2004. Every Child Matters (2003) discuss that ‘integrated working focuses on encouraging and enabling all professionals to work together and to have common visions which they can deliver, building around the needs of the individual children’. The professionals involved in working in a multi-disciplinary team could be:

  • Police
  • School teacher
  • Early Years Practitioner
  • Midwife
  • GP
  • Social Worker
  • Speech and language therapist
  • Health Visitor
  • Educational psychologist

There are several key aspects of working with other professions, such as having an early intervention before problems become more of an emergency; The CAF which is Common Assessment Framework and is also consent based (NDNA, 2007). Furthermore, multi-agency working also involves record keeping, sharing information to the right people, working with the family and the leader (NDNA, 2007). There are also policies and legislation supporting multi-agency working such as EPPE Report (2003), local safeguarding children board (LSCB) and Children’s Act (2004-06).These legislations have strengthened the meaning of multi-agency working bringing all professionals together in sight of the child (NDNA, 2007). However, there are many potential barriers for integrating professions which can be parental consent. Parents can often feel judged and pressured by certain individuals. In comparison, Aubrey (2011) explain further that with a code of ethics within the setting and moving forward with strategies such as developing a mutual respect and trust, support the continuing development of the parents’ skills and help to develop them further. Furthermore, other publications such as the DCELLS (2005) explain that the challenges could include recruitment. Recruitment can be vital in a centre with such professionals due to new talent, and this could show more of a diverse work-force.

Methods of communication are also important within the early year’s sector with staff. For example, communicating face to face now and again is essential and gives the member of staff time to feel listened to and a valued member (Daly & Byres, 2009). However, Lussier and Achua (2015) explain that communicating one on one could also have negative effects from being unable to record informal discussions and make other team members worried that they haven’t been in a meeting and therefore they may feel less valued. Group meetings are also an easy form of communicating; this would consist of staff being able to make their opinions known and to share views on certain aspects. Employee handbooks can also be an official way of communicating with the leader and other staff, this could be important when a job role has changed (Daly & Byres, 2009) However, this could also have a negative effect as all written information needs to be up to date and this could apply with the National Minimum Standards (Daly & Byres, 2009).

Parents are as much a part of their child’s education as the practitioners and Bowlby (1969) stated that parents are the child’s first source of learning and need to be in close contact with the work that is provided to the children (Daly and Byres, 2009). In successfully managed settings, the leader will have to keep the parents up to date and communicate about the development of their child. Parents being able to feel welcome, valuable and able to trust the practitioners are a key aspect (OFSTED, 2013). Childcare providers can assure the parents that the information that they give them about the child is with them and that they will take care of every child’s needs (OFSTED 2013). It is important that parents feel that they can confide in the manager/practitioner so that they can give them the information that they need and so they can be used to organise activities for particular needs (OFSTED, 2013). There are many ways of keeping parents frequently updated on the development of their children. For example, there are systematic approaches which enable the parents to be updated every six weeks. The ways that communication can be easier for parents/practitioners are regular text messages through mobile phones, emailing via the internet and also the settings website page (OFSTED, 2013). However, systematic approaches to the means of communication can also be hard due to parents having lack of technology to enable them to contact the settings (Bryant & Oliver, 2009). In sight of challenges, many parents feel as though they are being judged by their children’s practitioners and back away from having face to face contact with them weekly (Moyles, 2006).

Challenges that are faced within the workplace need to be underpinned by the leader for some form of conflict resolution. For a good leader, being able to notice staff that are not getting on for some reason should be easy, however sometimes this may be challenging as staff do not want to go through problems that they are facing (Moyles, 2006). There many general ways of how a conflict is, competition, accommodation, avoidance, collaboration and compromise (Rodd, 2006). Leaders with a certain amount of emotional intelligence will be able to understand strategies how to resolve conflicts between staff members. Generally, solving problems such as conflict are able to gather information and evidence to what has possibly happened, and after the time it has taken to get the information, they may get staff in separately and speak to them (Rodd, 2006). However, Sadek and Sadek (2004) explains that many colleagues suffer from conflicts between each other now and again and this may hinder their ability to be efficient to children or other adults within the setting.

ACAS (2015) provide conflict resolution for managers and leaders to show them effective ways of problem solving through times like this. ACAS (2015) also offer information and case studies for leaders and managers to help them with these possible challenges. The government sees wider benefits to improve ‘leader and employee relationships’ which will lead to the ‘high trust relationships’. They have come up with a method of how to manage and avoid conflict within the workplace. Developing strategies which may help manage conflict before it may become a problem is essential within the workplace, such as developing handbooks for staff before they enter the place of work (ACAS, 2014). A democratic leader would be needed in such situations, as this would be an empathetic situation in many cases and they will not presume the problem, they are able to communicate informally (ACAS, 2015). The steps which can be taken are 1. Informally asking an individual to come and talk to you about the problem. Furthermore, if the informal stage isn’t as effective as it is needed then the issue would need to be investigated informally. 3. If stage 2 doesn’t work, then internal procedures need to be used (ACAS, 2015). Finally, making diagrams which could also be designated to the staffroom wall could be used for staff to understand policies and procedures which may be used when a conflict arises (ACAS, 2015). Adults need as much support during team building exercises as much as children need help when they have conflict with peers. Team building is vital within any daily job or setting as colleagues need to get to know each other and get to know how to work together on a daily basis (Williams and McInnes, 2005).

To conclude, this discussion shows leadership in positive and difficult situations. Distributed leadership is seen as one of the most important factors of a setting and partnerships with parents are also significant. The organisation ACAS (2015) has given leaders and managers information and procedures on many challenges that will be faced through working with parents, staff and children. Overall, the most efficient style is Goleman’s visionary leadership, where all staff are aimed towards the same outcome and goal.

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