Leadership

Submitted by: Alishba Saeed

Submitted to: Sir Tanzeel

Submission date: 24th December 2021

Contents
1
.................................................................................................................................................................... 1
LO1..............................................................................................................................................................3
Leadership Theory in the Twenty-First Century...........................................................................................4
Classical Management Theory.....................................................................................................................5
Behavioral Management Theory is a kind of management theory..............................................................5
LO2..............................................................................................................................................................8
LO3............................................................................................................................................................11
LO4............................................................................................................................................................15
References.................................................................................................................................................16

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LO1
Over-managed and under-led enterprises do not perform at the level expected by their customers
or stakeholders. Leadership in the middle of management establishes a replacement course of
action and makes efficient use of available resources to achieve this goal. Individual as well as
organisational success are dependent on the effectiveness of each leader's and manager's actions.
Theories of Leadership include the following:
There are as many different perspectives on leadership as there are characteristics that separate
leaders from those who are not in positions of authority.
When it comes to leadership, the majority of current research has changed away from old
attribute or personality-based theories and toward scenario theory, according to whom the case in
which leadership is exercised is defined by a combination of the leader's talents and qualities.
The names of them are as follows: There are six major leadership theories.
 The theory of the magnificent man....
 There is a hypothesis of traits....
 The behavioural theory is a theory that describes how people behave....
 Transactional theory (also known as management theory)....
 The transformational theory, often known as the connection theory.
 The situational theory of learning.
Management theories include the following:

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Here are seven fundamental management theories that you should be familiar with.
Management philosophy based on scientific principles....
 Administrative management theory's fundamental principles...
 Bureaucratic management theory is a theory that...
 Theoretical study of human connections...
 Theoretical framework for systems management...
 The philosophy of contingency management....
 Theoretical X and Y
The influence of theories on organisations:
Leadership has a direct impact on the success of companies and the people who work in such
organisations.
Leaders examine values, culture, modification tolerance, and employee motivation to ensure they
are in line with the organization's goals. They influence the formation of institutional methods, as
well as the implementation and efficacy of such ways.
Management theories assist businesses in focusing on their goals, communicating effectively,
and evolving. The use of exploitation management theory in the workplace allows leaders to
focus on their primary objectives. Once a management style or theory is implemented, it has the
automatic effect of streamlining the greatest priorities for the company.

Leadership Theory in the Twenty-First Century

Modern leadership theories are split into three categories: transactional, transformational, and
participatory. Management theories are concerned with the role of supervision, organisation, and
group performance in a corporate context. These leadership approaches use rewards and
penalties to inspire and control staff. Managers often use management theories; employees are
rewarded for good performance and punished for bad performance. Watch the video to learn
more about transactional leadership (Jaiswal & Dhar, 2017). Relational theories, often known as
transformational theories, emphasise the ties that leaders and followers build. Transformational
leaders inspire their people by helping them comprehend the task's importance and larger benefit.
These leaders care about the group's overall success, but also for each individual's potential. This
kind of leader has strong ethical and moral standards. Participatory leadership theories state that
the ideal leadership style appreciates and respects others' perspectives and contributions. These

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leaders help group members feel more relevant and committed to the decision-making process by
encouraging their participation and contributions.

Management theories have generalised the rules and principles that guide managers and
supervisors in managing and executing strategies to attain the organization's goal. Managers
must inspire subordinates to perform at their best. Management theories gave insight on how to
conduct tasks efficiently in this circumstance. Distinguish between classical, behavioural, and
contemporary management theories.

Classical Management Theory

In accordance with conventional management philosophy, employee satisfaction and motivation
are founded on a basic feature of compensation. When it comes to classical management theory,
managers in different firms who adhere to it put a heavy focus on increasing productivity via the
provision of incentives and rewards to high-performing personnel. The classical school of
thought also included notions of science, administration, and bureaucracy, which were all
incorporated into one another. Frederic Taylor conducted research on the performance of
workers, as well as the most effective and scientific technique of carrying out activities inside a
company. Taylor's concept is largely concerned with maximising productivity while also
simplifying the operations that are carried out. A fair reward for fair work, which Taylor
established, is based on collaboration between employees and their employers and is based on
the partnership between employees and their employers. Despite the fact that this theory is not
widely applied in the practise of business today, it may assist leaders in increasing the efficiency
of the workplace and improving team communication. Administrative theory offers managers
with guidelines and standards to follow in order for the organization's internal work integration
to be a successful endeavour. Henri Fayol, who is widely considered as the originator of
management theory, is credited with establishing it in the most prominent manner possible.
Management theory is divided into two categories: administrative management theory, which is
concerned with the administration of internal operations and organisational performance, and
scientific management theory, which is concerned with the administration of individual
performance. Generally speaking, operational activities inside an organisation may be classified
into six categories: technical and commercial activities, financial operations, security operations,
accounting and administrative activities, and human resource management. The authority

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structure in decision-making processes is at the heart of the bureaucracy theory, which was
created by Max Weber (Tripathi et al., 2020a).

Behavioral Management Theory is a kind of management theory.

As a consequence of the growth of industries and organisations that are concerned with the
promotion of workers' or human interests, managers in organisations place a strong emphasis on
people-oriented techniques of doing business. The management of the business is focused on the
satisfaction and motivation of employees, as well as collaboration and a collaborative
environment. Human relation theory and behavioural science theory are two areas that may be
further subdivided into which behavioural management theory can be classified. Employee
morale has an influence on their capacity to perform at work, and just providing money will not
be sufficient to satisfy and motivate them. The idea of human connection is founded on
behaviour; yet, a vast number of behavioural assumptions make this theory ineffectual in many
situations. It is recommended that management be founded on behavioural science theories that
include a wide range of issues, such as psychology and sociology, and that managers be socially
conscious (Eva et al., 2018).

Modern Management Theories and Practices in the Twenty-First Century

When it comes to the success of contemporary businesses, the technology factor plays a key
influence. Organizational managers may mix past theories elements in modern organisations to
scientifically assess each employee's performance under the guidance of management theory in
the twenty-first century. There are three ideas that make up modern management theory:
quantitative management theory, system management theory, and contingency management
theory. Increasing the total military capabilities and enhancing decision-making are two of the
primary goals of quantitative theory in the military. It has been shown that system theory has a
positive impact on management and organisation. The many activities of the company are
brought together in order to achieve a common goal or aim. This concept aids managers in
acquiring a more thorough understanding of the company's overall operations. To a large extent,
scholars believe that system theory is the foundation of organisational development. In system
theory, the total effectiveness of the system was considered rather than the efficiency of
individual subsystems. The interconnectedness of an organization's subsystems is essential for
the organisation to achieve its goals. In order to simplify a complicated organisation,

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scientifically measure employee performance, and build coordination across management
activities (planning, organising, directing, and regulating), this theory aids the manager in
achieving the organisational objective in a positive way. The concept of contingency helps to
explain why more use of technology leads in better performance than other means of doing
things (Li et al., 2019).

The implementation of leadership and management ideas has a significant impact.

Organizations of today emphasise the need of rethinking leadership and management

performance in today's changing environment, and this is supported by research. In order for
their businesses to achieve maximum success, leadership theories and management theories
provide a framework for leaders and managers to operate within.

The leadership of an organisation determines the success of the organisation, and the satisfaction,
motivation, values, and culture of the organisation are all determined by the leadership of the
company as well. The resources of the firm were skillfully used by the leader in order to
maximise profit. From a variety of approaches, the literature on leadership has been explored,
including human traits as well as employee behaviour and organisational context. The concept of
charismatic leadership helped to clarify how a leader might excite his or her people and make
them more productive. It is common for employees to put their personal self-interest ahead of the
interests of the company. Organizations are in a condition of survival, or crisis number one, as a
result of the charismatic leadership of the organisation. Because of this, although the notion of
charismatic leadership performs a less favourable role in large companies, charismatic leadership
serves as a crucial component of transformational leadership in smaller firms (Dutta & Khatri,
2017). A positive and advantageous relationship exists between the achievement of the current
organisational goal and transactional leadership theory as an outcome of the fact that
transactional leadership theories reward for success and penalise for poor or non-performance.
Transformation leaders often use framing to communicate the strategic vision to their staff, so
encouraging them to become more dedicated to the purpose. A positive correlation has been
shown between transformational leadership theory and both individual performance and
organisational results. Transformational leadership operates similarly to a canning factory,
putting itself in a position of power, and is the polar opposite of charismatic leadership in terms
of effectiveness. Transformational leaders, such as Steve Jobs and Henry Ford, on the other

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hand, take action in response to the notion of change and acquire fame and money as a
consequence.. A sophisticated and demanding style of leadership is seen in this instance
(McCune Stein & Ai Min, 2019).

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LO2
There are eight main types of management styles to choose from.
Management in a democratic fashion. Democratic management is based on cooperation. Other
management styles include laissez-faire, autocratic, charismatic, pacesetting, bureaucratic,
transactional, and transactional-laissez-faire management.
To put together outstanding structure cultures, effective leadership is one of the most important|
the most important|the most effective] of the essentials. No matter what position they hold, every
UN agency with influence or power will be a forerunner, and leaders set the tone for the
organization's structure and culture.
Leaders will instil principles in their followers while also holding them accountable for their
actions. This impact on others will be either favourable or bad depending on the leadership
approach and execution of strategy; yet, both successful and incompetent leadership may
influence and establish structural culture within a geographical location, depending on their
effectiveness. The Society for Human Resource Management (SHRM) recommends employers
to be careful in creating a culture where employees will flourish. Failure to establish a
compelling culture is detrimental to both employees and the company's financial line.
• What is the significance of structure and culture?
Hands become even more engaged when a pacesetter instils the higher-level characteristics of
culture throughout a workday. The following are some benefits of increased upper-level
employee engagement:
• Improved product quality and safety. Staff members that are enthusiastic about their jobs are
dedicated to exceeding industry standards of quality and excellence. It is as a result of this that
individuals make more informed decisions, pay more attention to detail, and approach their job
with greater care. These same acts contribute to the promotion and maintenance of workplace
safety in tandem.
• outstanding customer service. Customer service representatives that are respected find
themselves appreciating their customers, clients, team colleagues, and everyone else with whom
they come into touch on a daily basis. When extra effort is put into answering questions,
addressing concerns, resolving problems, and generally being of assistance to others, it is almost
assured that sales will skyrocket.

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The relationship between leadership and organisational culture has been more clear in recent
years (Fleenor, 2002), but researchers and academics have also discovered flaws in the process
of analysing organisations. Leaders have a positive and significant influence on the workers in
their immediate circle as a consequence of their use of a number of ways to encourage and
devote staff to reaching their daily objectives. Leadership theories hold that the leader should
adopt a style based on the circumstances of the situation in which he or she finds themselves. It
is becoming more common to see contingency theories and situational theories being phased out
of the market as contributors shift their focus to the building of corporate culture via
transformational leadership. There has been a consequent growth in interest in and understanding
of culture, but the concept of contingency theory has faded as a consequence of this
development. The creation of trustworthy connections and personal credibility on the part of the
leader may be beneficial in the development of organisational culture. The relationship between
a firm and its leader is considered to be strong since the success of a company is based on the
leader's abilities. Workplace interaction between employees or between coworkers and their
bosses is largely governed by the leader's management style and personal preferences. As a
consequence of the establishment of these contacts, the manifestation of approved behaviour
inside the organisation occurs. A superior leader is able to recognise the difference between
productive and defensive cultural contexts. It is critical that the leadership of a company pay
attention to the key parts of a constructive culture throughout the early phases of the
organization's existence: shareholders, employees, and consumers. Cultural constructionism
represents the rules of acceptable behaviour in an organisation. Management and supervisory
abilities are critical in the formation and reinforcement of cultural norms in a firm, and this skill
is shown via successful leadership.

The investigation was carried out on behalf of a Turkish telecoms company that is publicly listed
on the Istanbul Stock Exchange. A international telecoms organisation has a majority position in
this telecommunications industry, accounting for 50 percent of the company's total equity. To
identify and design a model that will support the relationship between leadership, culture, and
performance. In the telecommunications business, this firm has been around for a long time and
has gone through a lot of organisational adjustments throughout the years. Through this research,
it has been shown that the use of transformational leadership and transformational culture may
aid a firm in maintaining its viability throughout a crucial era. Several changes have occurred

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within this firm, and the ideal leader will be fast to solve problems, eager to take chances, good
at building teams, and open to new ideas. Having these qualities and contributing to the creation
of an atmosphere favourable to innovation and creativity are characteristics of transformative
leaders. Following this growth, employees' feelings of motivation, belongingness, and dedication
to the company increased. The outcome is that company leaders with advantageous attributes
such as a sense of purpose, creativity, and empowerment are empowered to create a culture that
will aid them in their success. In accordance with the conclusions of this study, the variables that
contribute to a company's successful performance are its leadership and its organisational
culture.

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LO3
The leader employs an incentive system in order to improve employee behavior. The effort
results in an increase in the worker's hopeful value, and the reward is the foundational work. The
majority of businesses have a generous incentive scheme in place to encourage their employees
to achieve their organizational goals. Employees may earn prizes in one of two methods, which
are detailed below.

Extrinsic incentives are those that are administered on the outside. A director, or a high-level
supervisor, is responsible for transferring value from one person to another. Bonuses,
promotions, off-time compensation, certain specific assignments, awards, and oral honors are
only a few examples of things that might happen at work.

A person may be practised after finishing the work because of the intrinsic high that they have.
The employee is in excellent health because he or she has a positive response to strong
competency, employee development, and the ability to self-manage more of the job. Instead of
comparing extrinsic rewards with motivational theory, consider intrinsic rewards, which are
internal and do not rely on the fundamental act of another worker to be effective.

The company's ability to provide an effective incentive scheme is dependent on the motivational
behavior of the employees. When designing an efficient incentive scheme, there are four
components to consider.

• The need to reward all employees is a fundamental need that must be met. • In the same and the
same sector of competitive enterprises, the need to reward all employees is a fundamental in
system need and comparable offer.

• In a similar circumstance, a reward that is dispersed in a reasonable and justifiable manner is

essential for the employees.

• Because all employees are varied, the whole reward system should be complete. As a result, the
leader should give a variety of incentives. Salary and vacation time. Acknowledgement or
endorsement of something. More to the point, the leader provides a variety of different options
for achieving these prizes.

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Vertical job load is also referred to as job enrichment; with job enrichment, not only are the
duties increased, but the worker will also be given more responsibilities and authority. Work
enrichment should result in improved morale and job performance if employees' talents are
required for the job and the job requires abilities that match the employee competencies.

Manage performance through leadership and management practises to guarantee that it is always
improving and evolving.

The term "continuous improvement process" refers to an ongoing endeavour to enhance a

product or service over an extended period of time. The Deming Cycle (also known as the
Deming Cycle), kaizen, six sigma, and the theory of constraints are just a few examples of
continuous improvement approaches.

PDC- The Deming Cycle: The Deming Cycle is a four-stage process that includes the following
stages: plan, do, check, and act. It is designed to enhance a product or service via the gathering of
relevant information. This model is developed from the plan, do, and see model of the planning
process (Shewhart & Deming, 1986). P-PLAN, D-DO, C-CHECK, and A-ACT are the acronyms
for PDCA and PDSA, respectively. P-PLAN, D-DO, S-STUDY, and A-ACT are the acronyms
for PDCA and PDSA. The PDCA model is widely used throughout industry and organization for
the purpose of improving or developing business processes. The continuity of the cycle allows
for the identification of the root cause of a problem, the improvement of productivity through
performance management, and the effective management of change.

In English, the term "Kaizen" refers to constant improvement. This philosophy growth and
atmosphere in which all workers have the potential for improvement as well as the ability to
recognise issues that lead to continuous improvement are two important components of this
philosophy. After that, there is a plan of action that is followed, which means that the normal
way of improvement is followed. This helps to boost the effectiveness of the company while also
assisting in the development of long-term values. The Kaizen theory is primarily based on ten
principles, which are as follows: involvement of employees as much as possible, participation by
everyone, no barriers to improvement, looking for more improvement, elimination of old
concepts, low-cost solution, something that is wrong, elimination of the status quo, and
acceptance of change. Kaizen is a Japanese term that meaning "constant improvement." It may

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be utilised in many aspects of one's personal, social, and professional lives, as well as in all
sectors of business in a variety of ways.

Six Sigma: In the 1980s, Motorola was the first company to use six sigma for the purpose of
mistake removal. Six sigma gained popularity when General Electric made it a major business
strategy. The elimination of faults leads to the advancement of the organization. There are five
main ideas in Six Sigma: understanding the client's requirements, identifying and resolving
fundamental problems, being proactive, having several team members participating, flexibility
and adaptation. Six sigma and lean are combined to make lean six sigma, which refers to the
removal of waste and the improvement of performance in a business organization. Six sigma
theory was first utilised mostly in the manufacturing sector, but has since been adopted by a wide
range of businesses. This is better appropriate for big organizations or businesses with at least
500 workers..

The Theory of Constraints (TOC) is a framework for understanding how things work. Eliyahu
Goldratt published his book "The Goal" in the 1980s, which introduced this philosophy. This
technique is more appropriate for complex systems since it allows for the integration of activities
and the development of linkages between them. Generally speaking, this procedure has five
steps: identify the constraint, exploit the constraint, synchronise the constraints, execute the
constraint, and repeat. This approach is not only beneficial in the manufacturing sector, but it can
also be used to other businesses to enhance their productivity and sales. This idea aids in the
removal of needless expenditures, the establishment of standards for continual development, the
identification of factors that slow down activities, and the preparation of backup plans.

Performance management is an excellent tool for fostering cooperation between everyday

operations and organizational planning, which eventually becomes part of the culture.
Performance management frameworks are used to enhance the organization's performance on a
constant basis, and they help to build harmony between the organization's leadership and
management. The current standard and performance are rigorously checked and monitored on a
regular basis to ensure that the improvement is maintained and continues. There is no definitive
end point to the process of progress. Every firm has developed its own set of instruments for
achieving continuous improvement. Improve performance on a continuous basis using available
resources, such as assessing performance, current stage performance, cultural reform, and so on

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In his research, McKinsey elucidates the four (4) essential characteristics of a successful leader
that are shown by them. His research comprised one hundred and eighty nine thousand (189,000)
participants from eighty-one (81) organizations from a variety of industries and disciplines.
According to the findings of this research, just four (4) behaviors contribute to the effectiveness
of a leader: supporting conduct, result-oriented behavior, taking a new viewpoint, and
successfully solving problems. Leadership conduct should be supportive in the company in order
to enable a culture of continuous improvement to be fostered and sustained. During this process,
leadership and management identify improvement opportunities, and employees take advantage
of these opportunities to meet the objectives that have been established. These outcomes are
more favorable for the progress of the organization. It is essential for leadership behavior to be
able to integrate communications with goal planning and communication in order to achieve
continual progress. Successful leaders guide their teams and organizations to achieve continual
growth and progress. The most essential leadership habit is to take a variety of perspectives and
never to express an opinion on the spot, but rather to evaluate a variety of perspectives based on
extensive information. According to McKinsey, a leader should consider all possible
perspectives on a topic as well as input from front-line workers before making a decision.
According to the findings of this study, these behaviors account for eighty-nine percent (89%) of
the efficacy of leadership.

Employees that work in a continuous improvement culture are empowered to make

improvements on a regular basis. For example, Toyota's "Toyota Way" is one of the most
important building blocks of their continuous improvement culture. Toyota created the Toyota
creative idea and suggestion system (TCISS) in 1951, which encourages employees to constantly
offer new enhancements to the company's products. Only having a new concept is not sufficient
for innovation; rather, it is the management and execution of that idea that is more significant,
which is why Toyota has accumulated 40 million ideas over the course of 70 years. This
demonstrated that a leadership culture that empowers employees results in ongoing progress in
the organization. The dedication, motivation, and contentment of employees have risen to the top
of the priority list for the organization's leadership. For example, the leadership of firms in the
United States has realised that employee involvement is critical to the success of the company,
which is why organizations compete for talent. Employees are empowered as a result of a change
in culture, and continual development occurs from the top down. This increased the amount of

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responsibility placed on the shoulders of front-line employees. Continuous improvement culture
built on strong leadership, communication from the top down, the development of trusted
employees, and the promotion of a learning culture. This culture is maintained by creating the
right environment, following continuous improvement processes, setting the example, involving
human resources as strategic partners, and removing roadblocks and obstacles During the
process of developing a continuous improvement culture, organizations should be mindful of
elements such as the low hanging fruit trap, reality illusion, the Emperor's new clothes,
friendship fallacy, and the efficiency paradox.

Examples of continuous improvement culture are provided for better understanding; the first is
from the health industry, specifically St. Mary's General Hospital of Canada, which is rated as
the 1st safest hospital in the country. CEO Don Shilton implemented an improvement strategy
and enlisted the help of frontline staff in resolving the situation. At addition, GEMBA and
KAIZEN practises were implemented in the hospital to ensure long-term continuous
development. Another example comes from the manufacturing sector: in the 1980s, the NUMMI
facility was considered the worst plant in the history of General Motors; this plant was closed in
2010, but once Toyota joined the venture, the plant went from being the worst to the best in a
matter of 12 months. Changing the culture of a business is the most hardest undertaking, but it is
one that is well worth the effort. Only a few companies have made a commitment to this and are
seeing rewards.

LO4
It is not always easy to navigate the route to successful performance management, but making
doable adjustments in tiny steps may have significant consequences. The points listed here serve
as a refresher on a few of the most important aspects of the in approach.
• Clearly define your objectives.
Improve productivity via better goal management by starting with performance planning and
documenting everything. Prepare and teach your managers to conduct a perfect performance
evaluation.
The benefits of a cloud-based, autonomous performance management system should also be
considered in order to prevent squandering money and optimising the procedure.

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