Critical Issues in Business

A critical review of leadership in the present context

Submitted By: Sandeep Bholah Module Name: Critical Issues in Business

NILE ID: 18424794 Module Code: STRM042-SUMAI-1718

Date of Submission: 9 July 2018 Module Leader: Mr. P. Chinnapen

Word Count: 2500 Words UON Module Leader: Mrs. Maggie Anderson
 TABLE OF CONTENTS

LIST OF FIGURES ............................................................................................................. 3

1. Introduction ................................................................................................................... 4

2. Literature Review ......................................................................................................... 5

2.1 Evolution of Leadership Styles and Theories ............................................................. 5

2.2 Leaders/ Leadership in the 21st Century .................................................................... 8

2.3 Effective Leadership in Business Organisation in the present context .................. 10

3. Summary and Conclusion .......................................................................................... 10

4. References .................................................................................................................... 12

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 LIST OF FIGURES

Figure 1: Blake and Mouton Model of Leadership............................................................... 6

Figure 2: Integrative Model of Leadership Behaviour......................................................... 7

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1. Introduction

The pursuit to define leadership and to explain its contemporary philosophy has led to
numerous theories and concepts. Over the past century these theories and concepts also attempt
to describe the ascribed qualities, skill sets, and other inherent attributes of leadership
(O'Connell, 2014).
Patricia O’Connell observed that the vast expanses of theories and studies have also triggered
a constant discussion amongst academics as what can be considered the most fitting definition
and the most relevant predisposition of leadership (O'Connell, 2014). While, Bennis noted the
lack of a unique explanation of leadership (Bennis, 2007). It has been described by Goffee and
Jones that any attempt to produce a specific list of skills and characteristics pertaining to
leadership is pointless (Goffee and Jones, 2006).
In simple terms, leadership is thought to be an important practical skill, equally useful for
everyone in the job market to acquire (The Conference Board, 2006). The learning and practice
of leadership is circumstantial that is, it varies from people to people, team to team and
circumstances to circumstances (Osborn et al., 2002; Porter & McLaughlin, 2006) and the
leader role is thought to advance over the course of the career path (Anderson, 1993; Day,
2012).
Over a century of research in leadership has generated the sturdy idea that the success of
organisations rests upon effective leadership (Wang et al., 2011). According to Nohria, Joyce
and Roberson (2003), leaders are responsible for a variance of up to 15% in the financial
earnings of an organisation. Therefore, a considerate portion of the leadership literature has
been dedicated to the quest of what actually establishes effective leadership actions.
The emergence of leadership attributes and skills is very crucial to companies. Leaders in
companies are required to show a compelling leadership depending on the situations. Leaders
must be ready to take the correct decisions and exert the proper control for the organisations to
thrive and avoid conscientious blunders. To support these leaders, organisations aim on growth
prospects that consist of developing the required predisposition for improvement and success
(Van Velsor, et al., 2010). Although studies advocate that over time, leadership skills can be
acquired and improved. The opportunity to promote same remains low (Avolio et al., 2009).
However, in the past two decades, studies have exposed numerous issues that is shown to
influence leadership advancement including the exposure of leadership individuality,
development and competence (Day, Harrison, & Halpin, 2009).

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2. Literature Review

2.1 Evolution of Leadership Styles and Theories

The progression in the leadership field over the past century can be attributed to the academic
theoretical models, nevertheless, any critical review of leadership would be limited without
first exploring a few pioneering models.

The Fiedler contingency theory suggested that the leadership situation governs the
effectiveness of the leader (Fiedler, 1971b, 1978). This theory further states that there is no one
leadership style which stands out among others, but rather it is the situation that dictates the
leadership effectiveness (Ellyson, et al. 2012). While situational favourableness dictates the
effectiveness of the leader in the Fiedler’s model, Colbert, Judge et al, referring to the Trait
theory of Leadership, came forth with another notion that the personality traits of a leader
influences his or her leadership. Furthermore, the emergence of leaders in their respective
positions in organisations similarly depends on the characteristics and attributes that they
possess. Although there are numerous publications supporting this claim, various other sources
further proposed that the rapport between a leader’s personality traits and leadership skills can
be assessed using a self-evaluative method of trait analysis. (Colbert, Judge, et al., 2012). Yet,
the idea of simply establishing leadership performance on a predefined set of attributes and the
relevance of those attributes in the actual context may be further debated and established.

Blake and Mouton model distinguishes organisations in terms of two specific categories,
interest for production or interest for people (Ki Wong Cho et al., 2018). While people-related
behaviour is indispensable to people motivation, a concern for task is vital to achieve goals and
targets (Van Wart, 2008). By considering these elements, the managerial grid has helped
experts in conceptualising and operationalising the strife between superiors and their team
members (Weider-Harfield, 1998). This grid adapts to the fundamental leadership advent by
furnishing a foundation that comprises of people and production (Blake, Mouton, 1964; Ross,
Dixson, 2016). In their 1964 book on the subject, the connections and effects on the leadership
style due to a concern for either people or production is elaborated by Robert R. Blake and Jane
S. Mouton which is represented in following Figure 1.

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 Figure 1: Blake and Mouton Model of Leadership

Source: The managerial grid (Blake & Mouton, 1985, p. 12)

Blake and Mouton introduced 81 probable leadership types established from the managerial
grid and categorised as:

1. impoverished management,
2. country club management,
3. organization man management,
4. authority-obedience management and
5. team management.

Team management (9,9) has been suggested by Blake and Mouton as the best leadership style,
which has a high interest in both people and production (Lee & Choi, 2005; Ross & Dixon,
2016; Sabanci, 2008; Van Wart, 2008). Nonetheless, in few circumstances, an asymmetric
leadership behaviour, e.g. (1, 9) or (9, 1) in the grid may be more apt which means the leader
prefers either production over people or people over production (Van Wart, 2008). Lim (2004)
stated that, in Japan, the most competent leaders are those who have an equal concern for both
production and people. Gallo and associates (2016) applied the managerial grid and found that
in the technology area of Slovakia, it is the authoritative leadership style which is the most
common.

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Blake and Mouton’s widespread organisational development model has been applied in many
fields from governmental organisations to other businesses (Rainey, 2003). The model was
known and utilised on a global scale and has since been cited by many scholars (Burke, 2017).
Although this model has had a decline and a loss of regard in different situations (Van Wart,
2008), it is still useful as it has been built on a robust model, in depth study and empirical
evidence (Burke, 2017). The leadership styles in various fields have been evaluated using the
Blake and Mouton’s managerial grid by many scholars (Holta & DeVore, 2005).

While the managerial grid certainly has its limitation despite being popular, a more recent
model has emerged namely the integrative leadership model. This model is built on the
foundation of psychological theory and groups leadership behaviours as task-oriented and
relations-oriented. While a focus for tasks aims for the achievement of goals, a focus on
relations, attempts to inspire followers to capitalise their effort into the achievement of the
goals, which establishes a connection between task-oriented and relations-oriented (Peter
Behrendt, Matz, Göritz, 2016). As such, task-oriented activities directly affect the fulfilment
of set goals and objectives, while relations-oriented activities, indirectly back this process by
providing the needed resources to the followers as illustrated in Figure 2 below.

Task-oriented and relation-oriented behaviours further diverge from each other with respect to
their goal. While a concern for task relate to the communication content, a concern for relations
relate chiefly to the communication style (Peter Behrendt, Matz, Göritz, 2016).

Figure 2: Integrative Model of Leadership Behaviour

Source: Behrendt et al., 2017

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2.2 Leaders/ Leadership in the 21st Century
A considerable shift in theories and concepts of the leadership field has been noted in this
century (White, 2011). Although, a deficiency of a single encompassing definition is observed,
the understanding, application and advancement of leadership have seen major changes in
recent times (Day, Antonakis, 2012; Bennis, 2007).

Studies, hypotheses and the list of desirable skills for the practice and growth of effective
leadership maintain the advancement with regards to variations in “how work is organised, the
complexity of challenges faced across all domains in which leadership is relevant, and the
growth and maturity of the social sciences on which most of the science of leadership rests”
(Day & Harrison, 2007).

Long known styles of leadership labelled as “leaders, followers, and a common goal they want
to achieve,” by Bennis (2007) in addition to the latest concepts such as transformational and
authentic leadership, require to “advocate fuller and more integrative focus that is multilevel,
multicomponent, and interdisciplinary and that recognizes that leadership is a function of the
leader, the led, and the complexity of the context” (Avolio, 2007). Despite the availability of a
considerable number of styles and concepts of leadership to choose from in the 21st century,
experts have no actual starting point for leader development (Ames & Kushell, 1995; Day,
2000; Nahapiet & Ghoshal, 1998). This is due to the lack of a practical and direct approach to
incorporate and align leadership growth at the individual and organisational level (Pearce,
2007; Avolio, 2007; Day, 2012).

An increase in the cognitive skills and traits across the career span is required for studying and
practicing leadership. Collective insights from the social and biological sciences must be
utilised in the attempt to produce a universal meaning and concept of leadership (Kegan &
Lahey, 2010; Anderson, 1993; White, 2011; Bennis, 2007; Day & Harrison, 2007; Day & Sin,
2011; Denison et al., 1995; Lord & Hall, 2005). Consequently, there has been a dramatic and
abrupt change in the predisposition of leadership in the first decade of the current century.

The notion that leadership is no longer the obligation of few key people in an organisation has
seen the daylight not only in theory but in practice as well. It further elaborates that, leadership
is in fact regular people inside an organisation, who has the capability to guide and lead others
in the accomplishment of both their own and the organisation’s common objectives and goals.
Leaders are no longer considered as people on a higher pedestal or having powers. While the
obligation of leadership is equally for everyone and not just a few, this philosophy still agrees

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with the age old concept that leaders are superior people (Smolenyak, Majumdar, Jul/Aug
1992:28).

The advent of transformational leadership has brought a change to the traditional leadership
styles and this leadership style has been termed as the future of both people and organisations.
It is an approach which attempts to transform both the social systems and the people at work
and bring about an esteemed and optimistic change in the followers of the leader. The
significance of this is that, followers eventually emerge as leaders. This style of leadership is
considered as a virtue which aims to inspire, encourage and influence followers while
accomplishing higher objectives and targets and to reveal the leader in every individual
(Kendrick, Nov 2011. p 14).

The following four aspects of transformational leadership which is sometimes termed as the 4
I’s is as follows:

• Idealised Influence: the leader encourages a moral and ethical conduct, imparts respect
and trust thereby serving as a role model to followers.
• Inspirational Motivation: the manner in which leaders express the future vision that
is inspiring and appealing to team members. Purpose and meaning provide the vigour
that pushes followers onwards. The followers are more enthusiastic to devote more
energy towards their responsibilities, they are encouraged and hopeful about the future
and have faith in in their capabilities.
• Intellectual Stimulation: the practice of transformational leaders to deal with
conventions and solicits followers’ ideas. Leaders with this style stimulate ingenuity
and creativeness in their followers.
• Individual consideration: The transformational leader pays attention to the needs of
each followers, mentors and guides the followers, listens to their apprehensions and
requests and challenges the followers. The individual attention inspires followers
towards self-development and motivation for their work.

(Kendrick, Nov 2011. p 14). In short, it may be concluded that individual attention,
participation and empowerment lays the foundation for transformational leadership
(Hewertson, Feb 2015).

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2.3 Effective Leadership in Business Organisation in the present context
Leadership plays an influential and innovative role in organisations in the present context. Furr
and Dyer, in their 2014 Harvard Business Review, stated that, it is imperative for leaders to go
beyond the traditional barriers by showing their followers that they are predisposed to rethink
some of the organisations intrinsic beliefs about the: brand, commodities, services, and clients.
Leaders must put together ideas and make their teams question their business practice. This
idea is however alarming as it implies scepticism and as a result leaders must assure followers
that this can be actually a constructive element and tackle it in a practical and efficient way.
(Furr, Dyer, 2014 p80-88).

Furr and Dyer further states that, not to just come up with ideas, but prepare businesses to
embrace them and to provide the necessary means to the teams to make the ideas realisable and
achievable The credibility and impact of the leader can be boosted by being visible to the teams
even in dire situations (Allen. Nov 2010). Business leaders presently must be ready to manage
crisis. Crisis management is an equally essential mission of business leaders today. Bringing
the focus to long-term goals, going against the trend and believing in instincts can help leaders
and their followers in challenging situations. The key to leadership and success is often
attributed to taking into consideration the individual needs of the team during a challenging
situation (Frohman Dec, 2006). The leader’s influence can be further increased by leading a
better strategy to manage conflicts, effective coping skills and rational thinking (Cerni, Curtis,
Comar 2014).

3. Summary and Conclusion

The plethora of researches and evidence that exist on leadership today gives a clear indication
that leadership behaviour is of vital significance to the survival and triumph of any businesses.
During the past century, the study of leadership has evolved, and many factors have been
associated with it namely, the personality attributes, skills, actions and traits. While some
scholars have attempted to enumerate the different prevailing leadership styles, other have
attempted to define the very notion of leadership and leadership practice based on intrinsic
attributes exhibited by leaders. Few scholars attempted to establish a correlation between
leadership and the leadership situation and the diverse leadership styles or behaviour. Some
have even suggested the transformational nature of leadership in organisations and attached a
transcendental connotation to it i.e. leaders are those who inspires and help bring out the best
in the team members. While leadership based solely on personality traits have been

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exhaustively studied, leadership acquired and enhanced as a skill has also been widely
discussed. Success and goal achievement in the present context largely depends on leadership
effectiveness and the leader capacity to motivate and influence its followers to work towards
the common vision and targets. The credibility and influence of the leader depends to the extent
to which the followers are involved, motivated and empowered by the leader. It is imperative
that leaders master the skill of crisis management and simultaneously attending to the specific
needs of the followers to thrive in a highly competitive business environment. Ultimately, for
long term survival of the business leaders must also think out of the box and trust their instincts.

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