PGBM02 Managerial and Leadership Theories in Modern Organization assessment answer
Analyse the managerial and leadership skills and competencies, which are required to empower employees within modern organisations
Effective leadership and managerial styles are required to increase the productivity of the organisation and for improving the performance of each employee. In this report, the impact of the management and leadership style to empower the employees within modern organisations has been analysed referring to examples of various modern organisations. The role and responsibilities of the leaders and managers have been discussed and also the skills and competencies of the leadership style and management style which is required to empower the employees of the organisation have been analysed in the report. This report gives a concept about the different managerial and leadership theories and discusses their impact on the organisation environment. This report also discusses the different types of management and leadership style within the organization for empowering the employee's performance and for improving the marketing value of the organisation. With respect to these aspects, the author has analysed the way effective leadership style improves the performance of each employee and increases the productivity of the organisation, as well as how effective managerial style gives actual job satisfaction to the employees and creates an effective work environment on the organisation. The report also provides appropriate recommendations based on the analysis for empowering the employees through effective management and leadership style.
Definition of employee empowerment and theoretical perspectives
Employee empowerment is an effective management strategy for empowering and encouraging the employees of the organisation. The main aim of employee empowerment is to provide necessary resources thus fulfilling their employment requirements and expectations. Also, empowerment increases employee’s confidence level for corporate decision making and improves their individual performance skills in the organisation (Yahayaand Ebrahim, 2016). Empowerment is a long-term strategy that involves resources and specific time investment from both traditional and modern organisational leaders and managers. The concept of empowerment suggests that effective leadership and management tools are required to empower the employee's skills, increasing knowledge and information sharing among the employees. Three theoretical approaches of the empowerment have been applied to empower the employees such as Psychological approach, socio-structural perspective, and critical perspective approach. The Psychological approach focuses on enhancing the individual competency, self-confidence and self-determination quality of the employees and also helps to develop their sense of humour level (Anderson and Sun, 2017). The Socio-structural perspective focuses on developing organisation policies, structure, rules, and regulation to give the employees power, influences, and authority over their works. The critical perspective challenges the overall concept of the employee empowerment concept. It argues that effort to create empowerment may give controls over the organisation's employees. The employee empowerment strategy gives greater job satisfaction, creating motivation, increasing the creativity and innovation, improving the overall work environment, increasing the self-confidence level for decision making in the organisation. Hence, empowering the employees of any organisation can reduce the requirements of supervision.
Leadership and managerial theories with reference employee motivation and empowerment
There are many management and leadership theories that help in determining effective leadership and management style for business. SMEs and large organisations alike should focus on making their business successful, and the success of the organisation depends on the way the managers and leaders lead their employees. Followings are the best management and leadership theories within the organisation to empower the employees:
Scientific management theory:
Scientific management theory is a management theory that synthesises and analyses the workflows of the entire organisation. The main objective of the scientific management theory in improving labour productivity and economic efficiency of the organisation. This theory focuses on the beliefs that make employees more hard working. Hard working helps to make the employees more efficient for optimising the way for completing the work and meeting the organisational objectives he founder of this theory is Fedrick Taylor (Yahaya and Ebrahim, 2016). This theory stated that all employees of the organisation could only be motivated by the proper incentive in the organisation. This theory states that proper scientific selection of the employees at the time of recruitment and proper training program for the employees should be arranged for improving the productivity of the organisation. The effective incentive should be given to the highly productive employees to motivate them.
System management theory:
System management theory provides an approach to analysing, thinking and understanding about the organisation. System management theory proposes that the organisation is the combination of multiple components and subsystems (Anderson and Sun, 2017). The multiple components must be operated together in harmony, so, that the larger system of the organisation can function successfully and optimally. Interdependence, synergy, the interrelation between the different subsystem and employees are the main key elements of this theory. The other elements are departments, business units, and workgroups. So, this theory stated that the main manager responsibility is to evaluate the best approach which able to collaborate with all departments and key elements of the organisation for better productivity.
Contingency management theory:
This management theory stated that no one management approach is suitable for the modern organisation. Many internal and external factors affect a particular management approach (Waring, 2016). The three variables are influences the overall organisation structure, the size of the organisation, leadership and management style and technology of the organisation. The main principles of this management theory are:
- There is no one specific management style for operating the organisation.
- A manager must be flexible to adapt to the changing environment and quickly identify the proper management style for a particular situation.
- This type of management style is more flexible and easy to operate the business successfully.
Theory X and Theory Y:
McGregor introduced the Theory X and Theory Y concept of the management style. Theory X management style stated that the employees needed to motivate by the promotion, rewarding and punishing system to ensure that they complete their work efficiently. This style assumes that employees avoid their responsibility, dislike their work and have to be forced, threatened and controlled to deliver the work (Otley, 2016). Theory Y stated that Theory Y managers use a participative and decentralised management style. This style is more collaborative and creates a trust-based relationship between employees and managers. Managers encourage the employees to develop their skills and also provides a suggestion for the improvement. Theory Y is more effective than the Theory X management style.
Situational leadership theory:
The situational leadership theory proposed that leaders of the organisation must choose their appropriate leadership style based upon the particular situational. This implies that according to the situation the leadership approaches changes and adopted the best one to mitigate the particular situation. For example where the leader is the most efficient and knowledgeable person among the employees, then it is the basic responsibility of the leader to guide the employees in different situations. Following only one leadership approach sometimes may not fit every situation and here the situational leadership can be applied for better result. (Lawteret al., 2015).
Trait theory stated that leaders are born with some certain traits that help in their leadership approaches and differentiate from the followers (Park et al., 2015). The extroversion quality, self-confidence level, and encouraging power are certain traits for the effective leadership style which can empower employees through proper motivation and guidance.
Analysis of skills and competencies required to empower employees
Following Skills and competencies of the leaders and managers are required for empowering employees of the organisation:
- Having a good vision and communication power: One of the most important skills for the leader and manager. The effective leader and manager having a strong vision power to convey the entire mission of the organisation to other employees. They proposing the clear way of thinking that can helps to motivate every employee. Strong communication skill is needed to create a proper environment for the knowledge sharing and .proper connection between the team to take part in the organisational development. (Thompson and Glasø, 2015).Example: Tesco, a British retail organisation's where leader and managers maintain both visionary and communication skills for empowering their employees. It helps to improve the services of the organisation.
- Being responsible and autonomous: An effective manager and leader must have the ability to take the decision and tackle the decision on own responsibility and also must have the ability to bearing that responsibility (De Hough et al., 2015). It helps to develop their employee’s autonomy and also empowering them for better productivity. Example: ASDA, a British organisation's manager, and leaders are more autonomous and responsible that encourages the employees of the organisation.
- Decision making Quality: An effective manager and leader must have the ability to take the right decision based upon the particular situation. The right decision quality empowering the employees and provides a ground to handle the situation and also improving the productivity of the organisation without any obstacle due to the adverse situation. (Iqbal et al., 2015).Example: In M&S, leaders and manager having efficient decision-making skill for taking the right decision on different situation. Employees of the organisation also get benefited through their guidance and understand the affectivity of the power and success behind the particular decision of the leader and manager. It helps to recognise the way for completing the work. It increases the confidence level of the employees for decision making in the organisation.
- Inspiring others quality: A effective manager and leader must have the ability to inspiring others, influencing the employees and guides them for achieving the common goal of the organisation. The manager must build a trust-based relationship, encouraging employee’s engagement and motivating them. This quality is empowering the employees in the best way (Fernandez and Moldogaziev, 2015). Example: Tesco and M&S company whose manager and leaders are inspiring the other employees by building a trust-based relationship.
- Having Empathy: Empathy is the essential skills for the manager and leader which helps to know employees, understand their expectation and feelings, perceive the employee’s point of view. Empathy creates a harmonious relationship between the employees and the manager. This quality empowering the employees correctly (Zhou et al., 2018).Example: Nike leaders and global organisation's managers provide empathy to the employees who help to empower them.
- Emotional intelligence skill: Emotional intelligence skill is a combination of verbal and nonverbal skill. A manager and leader must have the emotional intelligence skill which helps for understanding their own emotion and feelings and as well as also other employee’s emotion and feelings. This skill measures the individual ability to manage and recognise their emotions and the emotion of other employees. This quality was empowering the employees by improving the understanding level between the employees, manager, and leader (Park et al., 2015).Example: In Nike and ASDA leaders and managers having a great emotional intelligence skill which helps to understand the other employees and emotion and feeling.
- Being positive and enthusiastic: Positive and enthusiastic quality of the manager and leader encourages the other employees, guide them properly, giving enthusiasm for taking a decision regarding the situation. Positive nature of the manager and leader empowering the employees of the organisation, giving value to the employee's decision and improving their performance level in the organisation (Rolfe, 2016).Example: Morgan, the large UK organisation where leaders and managers are more positive and enthusiastic in nature that helps to empower the employees.
Based on the above-declared skill and competency, there are different types of Leadership and management style is applied in the modern organisation for empowering their employees.
Visionary Leadership and management style: Visionary leadership and management style have a powerful ability to inspiring the employees and drive the progress for the organisation. This type of leadership and management style provides a clear concept about the vision of the organisation that motivates the employees (Rolfe, 2016). This style provides freedom to the employees for utilising the best way to actualising the particular vision of the organisation. This management and leadership style provides more inspiration to the employees which helps for empowering the employees. Example: Many small and fast growing organisation applied this nature for empowering their employees like Nike global organisation applied this Visionary Leadership and management style which improves leadership and management quality of the organisation's leaders and manager and also motivating the employees for better production.
Autocratic Leadership and management style: Autocratic leadership style focuses on efficiency and outcomes. In this style, one person controls all over the decision. They take decision based on their own beliefs and choices and also enforces the other employees to follow this decision and steps for achieving a particular goal. They do not involve other employees for the decision-making process (Iqbal et al., 2015). This type of management and leadership style demotivating the employees and reduces the productivity of the organisation. Example: Only This type of management and leadership style may be useful in the organisation with the strict rules, regulation, and guidelines like the military organisation are the best place for Autocratic Leadership and management style which helps to empower the employees. Also, Nike, the global organisation has also applied this style to empowering the employee and for increasing their productivity.
Democratic Leadership and management style: Democratic leadership and management style is more effective for all types of organisation. This leadership and management style is participative and shared leadership approaches and management style. The shared leadership and management style that distribute the leadership responsibility and effective knowledge among the employee such as employees of the organisation can progress systematically. It shares knowledge and skills between the leader, manager and employees. These natures were providing an opportunity for the other employees for the decision-making process, for sharing their own ideas and concept about the particular situation in the organisation (Park et al., 2015). Creativity and innovation are encouraged by this leadership and management style. Employees feel inspired by this nature of leadership and management style. Example: Tesco, M&S and many other large and small organisations in the UK have applied this style for empowering their employees and improving their services.
Bureaucratic leadership and management style: This style also similar to the autocratic nature leadership and management style. This type of management and leadership style focuses on the fixed duties within the specific set of rules and regulation and specific scheduled time under the hierarchy of authorities (Lawteret al., 2015). There is a small requirement of collaboration and creativity. Example: This nature is more effective for highly regulated industries or organisation like health care, finance and government organisation. Also, the McDonald organisation applied this style to empowering the employees of the organisation.
Impact of empowered employees through managerial and leadership initiatives on modern organisations
The effective management and leadership style is required for empowering the employees. Effective leadership and management style encouraging the employees of the organisation, motivating them for achieving the particular goal for the organisation. The different small and large organisation applied the different leadership and management quality for empowering their employees (Yahayaand Ebrahim, 2016). Empowering employees is a combination of psychological empowerment and organisational empowerment. Psychological empowerment improves individual employee’s performance and knowledge skill and views towards their work responsibilities in the organisation. Organisational empowerment refers to the improvement of organisational structures, policies, and practices which encourages the employees, influences them towards the success, motivating them for achieving the particular goal.
Empowered the employees to improve their self-determination and self-confidence level to conduct their work responsibilities, increasing the sense of humour, increases their competence level in the organisation (Lawteret al., 2015). These empowerment strategies are creating an autonomous environment where the employees can participate in the decision-making process for achieving the particular goal of the organisation. This strategy increases the sharing of knowledge and information among every employee. A trust-based relationship is forming between the manager, leader, and employees.
This strategy provides a more productive, innovative and satisfying structure for the organisation. This strategy fulfils the requirements of the employees, developing high-quality production services for the organisation (Rolfe, 2016). The effective management and leadership style can only be established this effective strategy in the organisation. The empowerment denotes that organisations do not depend on the other for decision making; this effective strategy enables the decision making power, setting objectives and goal power into the employees. This strategy helps to achieve the goals easily and helps to obtain the rewards.
Most vital benefits that are achieved by implementing the empowerment strategy are as follows.
- Enabling the employees for sharing their thoughts, ideas and own conception for achieving the goal.
- Create a more trustworthy relationship and commitment among the organisation employees.
- Increasing collaboration among the employees.
- Increasing communication among different departments and employees of the organisation.
- Developing a healthy and effective organisational culture which motivates the employees.
- Reducing the waste and improving the quality of the organisation's products which fulfil the customer's needs and requirements.
- Increases the employee’s loyalty.
- Improving the productivity of the organisation which helps to increase the marketing of the organisation, self-esteem and self-respect quality among the employees.
Many small and large organizations have applied this strategy for empowering their employees and for increasing their productivity of the organisation (Park et al., 2015). Various organisations like Tesco, M&S, and McDonald have applied this strategy to improve their employee's performance level and the production level of the organisation. They applied different style of the leadership and management nature in the organization that helps to empower the employees of the organization. Effective leadership and management quality can only encourage employees in an efficient manner. The most effective leadership and management style is democratic leadership and management style for the organisation. Because of democratic leadership and management style is a more encouraging style which helps to encourage the employees of the organisation, improving the individual employee's competency level and performance level (Yahaya and Ebrahim, 2016). Effective leadership and management style increases the productivity of the organisation. The combination of effective leadership and management style and empowerment strategy create an effective environment for the small and large organisation. This combination creates a global image for the organisation, improves the quality of the products, fulfil the customer and employee's requirements and needs. The effective combination of leadership and management style and empowerment strategy motivates the employees in an efficient manner by maintaining all rules and regulation of the organisation.
Recommendations for empowering employees
After analysing the entire report, the appropriate recommendations for empowering the employees are:
- The organisation is empowering the employees by providing knowledge so that they can work more diligently which can make a difference for the organisation.
- The organisation must believe their employees and their competence level. This encourages the employees and increases the productivity of the organisation.
- The organisation must provide an opportunity for its growth path within the organisation. It motivates them and empowers them for better performance.
- The organisation managers and leaders must arrange the training and development program for the employees to improve their personal and professional skills and knowledge — the effective training and development program empowering the employees in an efficient manner.
- By delivering constructive feedback for better performance, the organisation can empower the employees of the organisation.
- The organisation must provide a proper incentive to highly productive employees. It helps to empower them and increase their performance level.
- The organisation's managers and leaders are must listen to their employee’s decision and also gives value to them. It helps for empowering and encouraging the employees.
After analyzing the entire report, it is concluded that empowering the employees is the attractive organization strategy for the small and large organization. Empowerment improves the individual employee's performance and competence level. The effective leadership and management style can only empower the employees properly. The different leadership and management theories and skills are discussed in this report which provides a clear concept about the effective style of the leaders and managers in the organization. It is concluded that empowering the employees through effective leadership and management style increases the productivity of the organization, create a trust-based relationship between the manager, leader, and employees. The combination of effective empowerment strategy and effective leadership and management style helps to improve the entire marketing value of the organization.