Comparing different Leadership styles at GSK
2.1 Three leadership styles that helps to compare the effectiveness of the different leadership of GSK and AstraZeneca:
There are three styles of leadership such as Authoritarian Style of leadership, democratic style of leadership and laissez-faire style of leadership. In an Autocratic style of leadership, the leader's rule the group based on the decision taken by them only. They dictate the other members stating about the ways to function as per the decision of the leadership (Goleman et al. 2013, p. 40). On the other hand, in the case of Democratic style, the leaders use their leadership skills by encouraging each member of the group to actively participate in the decision- making process. As per the concept of Laissez- faire style of leadership, the leader makes the least contribution to the decision-making a system and they allow the other team members to undertake important decisions and function accordingly (Bhatti et al. 2012, p. 192).
It has been found that GSK follows the Democratic style of leadership, whereas AstraZeneca follows a Laissez- faire style of leadership. GSK involves the active participation of each team member and the leader of the respective company as it has hierarchy structure. The knowledge flows through senior executives to the subordinates. It gives importance to values and need of its workers. In case of AstraZeneca, the workforce of the pharmaceutical organisation is undertaking important decisions for conducting the business operations. It has been noticed that the leader of AstraZeneca contributes minimal effort in the decision- making a system and it allows the team to take their own decision and function accordingly. The workflow of this organisation is directly dependent on the efficiency level and delivery of the individual performance of the employees (Rothlin, 2013, p. 747). The goals of the company range from its vision of researching and ensuring that no ethical practices are performed for selling the medicines and meeting the needs of targeted customers.
2.2 Explanation of the way that supports organisational theory and management practices of GSK:
Organisational theory deals with the evaluation of the company. Von Krogh et al. (2012, p. 277) stated thatthe organisational theory is comprised of viewpoint of rational system and division of workers and employees, a theory of modernisation and theory related with bureaucracy and contingency. It helps to specify the business targets of the organisation and formalisation. It is useful for determining issues and suggesting the ways of resolving the issues. Organisational theory helps the respective company to understand the way of increasing the workflow and productivity of the company. This theory is supporting the management practices of GSK. The management of GSK believes in building an inclusive organisation where each member of the pharmaceutical company is aware of their roles and responsibilities. The employees of the company should be aware of meeting the specified targets of the respective organisation. Therefore, the division of skilled workforce is strictly followed by the organisational theory of GSK.
The structure of GSK is flat hierarchical in nature and the workforce of the unit is directed by rational-legal decision- making system. The employees of the hierarchy control the working process of the subordinate employees which proves that GSK follows bureaucracy format. As per the concept of bureaucracy, the possession of the employees is kept segregated from the monies of GSK. The employees are expected to deliver their best potentiality to ensure the success of the respective company. These workers are provided training as per their job profile. Certain rules and regulations are specified by the hierarchical employees of this pharmaceutical company which clearly indicates that management is aligned with the theory of bureaucracy. This states that the theory of bureaucracy is aligned with the management practices of GSK. The management team members of GSK are capable of analysing the external and internal situation in terms of business operation.
2.3 Application of theories and other information to analyse the different approaches to management of GSK and AstraZeneca:
Different theoretical approaches are related with functioning process of the management practices of the organisation. Cunningham et al. (2015, p. 27) commented that these theories are namely bureaucratic theory, administrative theory, scientific theoretical concept, behavioural theory, co- operative approach, approach of social system, theory of group behaviour, etc. It has been found that GSK follows the guidelines of bureaucratic approach and AstraZeneca follows theoretical approach of Administration. GSK believes in equal contribution of the team member for meeting the business objectives. The workers related with the hierarchical structure are supervising and regulating the working procedure of the subordinate workforce of the renowned pharmaceutical company (Jakobsen, 2012, p.96).
It believes in establishing an inclusive or closed system within the organisational structure. The principles of GSK are created as per the experience of the managerial section and practicing style of the senior executives and managers. The management team of this particular organisation believes in the extensive teamwork for incorporating the imaginative capacity in manufacturing of medicines and selling of medicines in the market (Scahill, 2015, p.30). Formal training and specialisation is required to properly function in the working process of the managers of GSK. On the contrary, AstraZeneca follows administrative approach which gives importance on centralisation. This organisation believes in maintaining a proper order in the working procedures of administrators and managers. It lays emphasis on the undertaken decision of the subordinate workers and analyses their performance based on their contribution in the decision- making process.