Wordnetweb defines Organizational Leadership as:
- the activity of leading;
- the body of people who lead a group;
- the status of a leader;
- the ability to lead
In the present age, there are many accepted leaderships theories which are taught at schools and colleges. While Wikipedia signifies the meaning of Organizational Leadership through a process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task.
Goleman gave six leadership styles so as to categorize different leadership behaviour based on their characteristics and how these styles creates “resonance” or the required attenuation with their followers.
The high level of tolerance, liberties, and defined decision making roles for each level symbolize the true leadership spirit of the company. A decentralized decision making process with empowered employees signifies the growth and organisational structure of the company. The leadership style is visionary, which inspires, motivates and moves towards a shared dream for unified growth. Fieldler defined leadership style significantly dependent on the readiness of its subordinates, so in case of any organization, the importance of a true leadership not only lies in the charisma of the visionary leader, but also in the unified ambition and readiness of the employees.
The growth pattern of the company proves the fact that a participating leadership role with decentralised decision making and empowered employees significantly contributes to the overall profitability of the company (Goleman 2004).
The organisation has legitimate power in case of Argos. This power is also defined as organizational authority, based on the belief that the power is because of the right of individual as due to position of responsibility. French and raven examined the sources of power, their definition and the basis of existence, also the impact of this power on organizational behavior.
They also emphasised on the importance of legitimate significance of the coercion claiming less comparable resistance in return (Houser 2004).
Trait theory of leadership believes the fact that leaders have some personal traits which they are born with. The essence of these qualities lies in identifying the leader possessing these traits or qualities. The theory goes with assumption that people are born with inherited traits that are suited to strategic leadership. And with a right and appropriate combination of these traits that person can be a good leader. For an effective leader the most important trait is empathy. He should have a sound understanding of all related issues about their employees, organizational functioning and processes. The leader should be able to motivate its employees and should be able to unify the mission of organisation with that of individual goals.
According to Kurt Lewin, an American social psychologist, any problem or issue is simultaneously balanced by mutual interaction of two opposing forces. He named them, Driving force, and the ones that promote change, and Restraining forces, the ones that believes in maintaining the situation as it is. In some organization, as Lewin noted, equilibrium is maintained to prevent any change. He gave force field model diagram to define these opposing forces. This can be used to investigate and define balance of power, identifying the importance of different stakeholders and their relative opponents and people in favour. (Lewin 1943, Petri1991)
Tannenbaum and Schmidt gave leadership continuum model, in which they defined role of an autocratic and a democratic leader. Argos has democratic leaders who value employees’ empowerment, and a decentralised decision making authority. Here employees of all levels are involved in the decision making process. Compared to this, an autocratic leader makes his own decision and forces it on his subordinates (Lussier,Christopher 2009)
Behavioural grid model given by Robert Blake and Jane Mouton is also called as managerial grid model. The model defines different level of concerns of production on compared with concern of people along with level of motivation in the people. He also talks about increasing organizational productivity through enhanced individual effectiveness. In Argos a team style leadership is propagated among managers and employees. The role of top management lies in showing high empathy towards people at all level. They also signify high level of motivation (Blake, Mouton 1978).
There is a strong correlation between the kind of organizational performance and leadership style that can be nourished in it. A well groomed, emphatic organisation helps its employees to develop leadership skills so as to gain the requisite skills effectively.
In case of a horizontal organisation structure, it’s very easy to empower employees and thus involving employees in evolving leadership skills. Similarly in a vertical hierarchical organisation, it’s very difficult to empower people at all level, and thus the role of leadership gets restricted to top notch managers and organisational goals remains restricted to their company.
Fiedlers theory best fits into the Argos business model. As the theory explains role of leadership style and situational favourableness, in the organizational scenario it’s very crucial to amalgamate role of the entire involved scenario to judge the effectiveness of all the methods involved.
The importance of leader lies in identifying how one can enhance the overall effectiveness of organizational goals, amalgating with individual expectations. The leadership of Argos should significantly look into the understanding of individual employee performance, and role defining processes.
Edgard Schein, defined culture to be imbibed in all, deep and complex. According to him, for a true understanding of organizational learning and change planning, culture proves to be the main hindrance as well as the prime reformer.
As stated earlier, for a true leader, understanding culture remains the crucial part of his transformation.
Majken Schulz, in his book “On studying Organizational Cultures”, have defined rationalism, functionalism and symbolism as the three aspect of cultural explanations. Functionalism is explained as a funnel for pouring values and the summarization of ideas. The symbolism interpretation is explained in a spiral metaphorical manner. The author emphasised on the importance of functional aspect of his theory to suitably define organisational behaviour.
The three levels of organisational culture as given by Edgard Schein can be broadly defined into visible and invisible layers. Visible are the artefacts at the surface, while strategic goals and philosophies along with basic core values lies invisible (Schein 1985, 1992).
An organisation chooses to be following different structure based on its objective, strategic intent and long term goals. A horizontal organisation works best when employees are empowered and organisation needs innovation as its core competency. While in case of organisation where functional requirements surpass innovation and efficiency becomes more important, a vertical structure is best suited. Now a day’s organisations go for organic structure for developing skills and competencies.
Similarly organisational adaptability to external or internal changes also is determined by the kind of culture it is following. With the process of dynamism and constant evolution, it becomes very crucial to follow the cultural liberalism and empowerment among all levels. Understanding individual expectations and defining the identity suited in sync with overall organisational effectiveness.
Argos Theory (Rationalist Perspective)
Another theory about culture of an organization is the Rationalist Perspective. They believe that an organization is a mean to efficiently achieve a given objective. This is applied to Argos as they always believe in team work as a competitive advantage. The stated values and objectives of Argos run through the entire business and even the suppliers.
The rights are defined in way to integrate the organisation effectively, not with-standing the purpose of merit. With effect from the subject of understanding the cultural aspect remains important to the overall development of the organisation. So as to control the mannerism in which employees behave and study the pattern of minimal expectations with effect from unified understanding. This understanding not only creates an environment of intense empowerment but also maintains the innovative symbolism of organisational belongingness and loyalty and the feeling of being a dynamic contributor in the overall development of organisational growth pattern.
Johnson (2008) cultural web comprises of six broad elements:
A story simply is all the events that remain a talking point for people both inside and outside the company. The way a company chooses to give importance to these stories says a great deal about what values the organization believes and perceives as of utmost importance. They create heroes within the organisation history.
2.Rituals and Routines
The rituals are daily behaviour and actions of people that signal acceptable behaviour within the organisation. This includes not only employees’ behaviour within, but also with customers. They are set by senior people and are carried a tradition accepted manners.
symbols are the visual representations of the company including logos and the formal or informal dress code. The way an office is designed also gives the impression of symbolic importance.
This includes not only the structure as defined by the organization chart in the official version of organisational behaviour but also the unwritten lines of power and influence that indicate whose contributions are most valued.
The ways that the organization powers and behavioural aspects are controlled. These comprises of financial systems, quality systems, and rewards (including the way they are measured and distributed within the organization.)
The quarters of real power in the company. Generally they involve key senior executives, group of executives, sometimes even a department. The importance lies in the amount of influence these quarters have on decisions, operations, and strategic direction as designed for the organisation.
- Daniel Goleman, Richard E. Boyatzis, Annie McKee, 2004, Primal leadership: learning to lead with emotional intelligence, Harvard Business Press
- Rick Houser, MaryAnna Domokos-Cheng Ham, 2004, Gaining power and control through diversity and group affiliation, Greenwood Publishing Group
- Lewin K., 1943, Defining the “Field at a Given Time”, Psychological Review, 50: 292-310, Republished, 1997, Resolving Social Conflicts & Field Theory in Social Science, Washington, D.C., American Psychological Association
- Herbert L. Petri, 1991, “Motivation: theory, research, and applications”, Wadsworth Pub. Co., pp 242
- Robert N. Lussier, Christopher, 2009, “Leadership: Theory, Application, & Skill Development”, Cengage Learning, pp159
- Gerry Johnson, Kevan Scholes, Richard Whittington, 2008, Exploring Corporate Strategy, Financial Times Prentice Hall