Authoritative Power and Leadership Approaches - Coursework Example

Management in Context - itative Power and Leadership Approaches - Total Number of Words:3,479 Table of Contents I. Introduction ……………………………………………………………….. 3 II. Differences between a Leader and a Manager ……………………….. 4 III. Changing Demands on Work Environments ………………………….. 5 IV. Importance of Organizational Learning ……………………………….. 6 V. Importance of Teamwork and Leadership ……………………………. 7 VI. Significance of Power and Leadership in the Role and Responsibilities of a Manager ………………………………………….. 8 VII. Different Types of Leadership Approach in Relation to Organizational Power …………………………………………………… 9 a. Transformational Leadership Approach …………………… 10 b. Transactional Leadership Approach ……………………….. 11 VIII. Discussion ……………………………………………………………….. 13 IX. Conclusion ……………………………………………………………….. 16 References ……………………………………………………………………… 17 - 23 Introduction As a result of globalization, majority of the businesses today are forced to restructure the entire business process to be able to make the company compete in the global markets. As part of increasing the profitability and market share of a business organization, managers today are being challenged on how they could effectively implement their strategic growth plans. Each manager has their own strategic way in managing the people within the working environment. As far as the academic and business world is concern, a lot of past and current management theories are being used in order to enable us to explain the different ways in which a manager uses their power in terms of handle their subordinates. Among these important theories include the importance of teamwork and leadership among the managers. For this study, the student will analyze the differences between a leader and a manager followed by examining the continuously changing demands on the modern work environment as well as the importance of teamwork and leadership over the success of a business organization. Upon going through the impact of implementing team work and acquiring a good leadership skill, the student will explain the significance of power and leadership in the role and responsibilities of a manager within a business organization. In the process of going through the discussion with the relationship between organizational power and effective leadership approach, the student will tackle the transformational and transactional leadership approach in relation to organizational power that managers could use in enabling them to perform their duty as an effective leader of a business organization. Eventually, the student will discuss his/her own understanding and interpretation of the importance of organizational learning, the use of authoritative power as well as the importance of team work and selecting a leadership style in relation with the implementation of organizational change prior to conclusion. Differences between a Leader and a Manager Considering the tight competition in the global markets today, there is a strong need for us to be able to differentiate a leader from a manager arises. During the past decades, many people have failed to distinguish the difference between the two simply because of the close similarities between a leader and a manager. Considering that a leader and a manager have the power to control and manage the people who work for them, a lot of people think that both are just the same. Winston & Patterson (2006: p. 7) define leader as individuals who are not only capable of influencing, selecting, equipping, and training his/her follower(s) in order to possess various abilities and skills but also enables the subordinate(s) to willingly participate with the leader in terms of achieving the organization’s goal. On the other hand, Dessler (2001: pp. 296 – 297) define leaders as individuals who are capable of inspiring another person who often times have the “drive to achieve their goals; the desire to lead; self-confidence; cognitive ability; honesty and integrity; as well as having sufficient knowledge in doing business.” Aside from being able to manage people beyond their own self-interests for the benefits of the entire team (Davis, Schoorman, & Donaldson, 1997; Bass, 2000: p. 21), an effective leader is someone who could influence other people without the need to use coercion. Managers are basically pertaining to individuals who are in the power to conduct business affairs. (Merriam-Webster, 2008) Therefore, managers are required to have analytical minds needed in solving management problems aside from having the ability to plan, organize, control, influence, supervise, and lead his/her subordinates within the different levels of the organizational structure. Aside from being a good role model within and outside the business organization, managers also function as negotiator in case the need arises. Managers are expected to become a good leader in terms of motivating and encouraging employees. (Dessler, 2001: pp. 8 – 9) Similar to a good leader, managers are expected to have good communication skills and emotional competency to enable them to surpass any emotional and interpersonal crisis within the business organization. (Dessler, 2001: p. 11 and 291) The only difference between leaders and managers is that managers have the authority and responsibility to immediately get a task done through the help of his/her staff members. For this reason, some managers tend to become impersonal rather than emotional when it comes to attaining the company goals. Changing Demands on Work Environments In line with globalization, the traditional working environment we had in the past has significantly changed over time. In line with this matter, the working environment today demands a more complex and dynamic workforce which requires empowering the employees with necessary intellectual inputs that is heavily driven by technology. (Raju, 2005; Bates & Phalen, 2002; Giloth, 2000) In line with this matter, many organizations today have considered the importance of implementing self-management in order to increase each of the employee’s involvement at work. (Atzeni & Ghigliani, 2007; Lawler, 1998) The role and responsibility of managers in terms of handling human resources is a very difficult task. For this reason, Stewart and Manz (1995) suggest that managers should consider self-management as a strategic way of increasing the level of production output and morale of the employees in order to minimize the rate of absenteeism, turnover rate, and unsatisfied employees within a business organization. Given that the human resources are important factor that contributes to the success of the business organization, there is a strong need to empower them with necessary knowledge and skills needed to increase their work performance (Arckatty, 2007). In line with this matter, Lewis and Stewart (1961) discussed the importance of the managers’ ability not only to determine their own talents but also in nurturing and motivating the employees in order to increase their individual performance level. Importance of Organizational Learning In line with the continuously changing work environment, several studies revealed that organizational learning has gained equal importance with the performance goal orientation. (Lipshitz, Popper, & Friedman, 2002; Vandewalle, 2001; Edmondson & Moingeon, 1998) As proposed by Carol Dweck, the article written by Don Vandewalle (2001) entitled ‘Goal Orientation: Why Wanting to Look Successful Doesn’t Always Lead to Success’, the basic concept of goal orientation must include: (1) learning goal orientation which focuses on developing a person’s competence level through learning; and (2) performance goal orientation as a measurement of a person’s competency. (Vandewalle, 2001; p. 163) It only means that business managers who continuously focus on performance alone may not have a better success rate as compared with organizations that are practicing both the learning and performance goal orientation. This is primarily because of the lack of knowledge and skills improvements that are essential part of the continuously changing working environment. Importance of Teamwork and Leadership Good leadership skill, successful team work performance, and the team members’ individual and group affects and emotions are interrelated with one another. (Ilies et al., 2007; Sy et al., 2005) Even though the study of Arckatty (2007) focused only on the importance of individual behaviour such as the need to have the right attitude at work, confidence and communication skills rather than the concept of teamwork; several studies highlights the importance of teamwork and leadership skill for having a significant contribution to the success of the organization. (Ilies et al., 2007; Stewart and Manz, 1995: p. 751) Organizational performance is believed to be highly correlated with the outcome of team performance. Considering that each members of the team as well as the performance of a team can be easily affected by extrinsic factors that are related to legal, technological, social, industrial, and political matters (O’Connor, 2006), a shared identity and corporate values among the workers could minimize and prevent the possibility of organizational misunderstandings that are often caused by conflicting ideas, vision, and personal opinions. It also minimizes the possible arguments that may arise due to gender-role differences in each of the team leaders. (Eagly & Johnson, 1990; Rosener, 1990) When it comes to establishing a strong corporate values or developing a shared identity among the employees, it is important that managers have good leadership skill. A good leader is a person who could not only select, equip, influence, and train the team members with different set of knowledge, abilities and skills but also enables these members to willingly participate with the leader in terms of achieving the organizational goals. (Winston and Patterson, 2006) Managers with highly competent leadership skill are capable of inspiring and motivating the team members. In most cases, managers who are very much driven when it comes to achieving the organizational goals have the desire to lead. For managers to become good leaders, they should posses the qualities such as: (1) self-confidence; (2) cognitive ability; (3) honesty; (4) integrity; and (5) sufficient knowledge in doing business. (Dessler, 2001: pp. 296 – 297) Significance of Power and Leadership in the Role and Responsibilities of a Manager The use of organizational power and leadership style could either directly or indirectly affect the managers’ role and responsibilities in making a business organization successful. (Schneider, 2002; Lloyd, 1997) Based on the research study that was conducted by Lloyd (1997) with regards to the relationship and links between power, responsibility, leadership, and learning; “leadership should be more about how and what we learn about responsibilities rather than the usual preoccupation with power.” Rather than concentrating on the traditional bureaucracy based on the hierarchy within a business organization and the use of authoritative power (Schneider, 2002), the statement as suggested by Lloyd (1997) means that managers today should focus more on improving their leadership skills in order to increase the managers’ performance as he/she focuses on commiting themselves with their role and responsibilities as a manager. Different Types of Leadership Approach in Relation to Organizational Power There are a lot of leadership approaches that managers could choose when managing the employees. Some of these leadership approaches represents the use of authoritative power whereas others does not require the use of coercive power. (Shivers-Blackwell, 2004) Because of these differences, some leadership style are classified either as participative and/or directive leadership approach. According to Koopman & Wierdsma (1998), participative leadership style is a leadership approach wherein managers and their employees join together such that managers consider the input of each employee when it comes to making decisions. On the other hand, a directive leadership style considers only the vision of the manager when it comes to the decision making for the development and implementation of a strategic plan. (Sagie, 1997; Fiedler, 1995) Since managers are often exposed to different internal and environmental situations, effective leadership approach varies depending on the main purpose and situation faced by the leader. (Vroom & Jago, 1998; Mumford, 1986) Transformational Leadership Approach According to Kuhnert (1993: p. 18), transformational leaders are those individuals with a strong sense of inner purpose and direction who could effectively energize his/her followers to willingly follow his own decisions. For this reason, transformational leadership approach can be considered as a leadership style with participative orientation. As a result of using this type of leadership approach, several studies show that managers who have decided to use transformational leadership technique could effectively increase employees’ performance at work. (Sagie, 1996; Hogan, Curphy, & Hogan, 1994) Transformational leadership style is formed by four major components known as: (1) charisma or idealized influence, (2) inspirational motivation, (3) intellectual stimulation, and (4) individual consideration. (Martin & Epitropaki, 2001; Bass, 1985) For this reason, transformational leaders are committed in training their subordinates to become leaders in their own way by being able to work under less supervision and express themselves freely within the business organization. (Shivers-Blackwell, 2004) Considering this point-of-view, transformational leaders and followers are all equal in the sense that they work towards one organizational goal as a team. The only difference between a transformational leader and his/her subordinate is the fact that each of them has a different set of activities played within the organizational group. Depending on the situation within the business organization, transformational leadership approach tries to integrate the need for participative and directive leadership style when it comes with the need to use organizational power. (Bass, 1985) Since this type of leadership approach is flexible depending on the management situation, the fact that transformational leadership approach considers both directive and participative leadership style contributes a lot to the success of improving employees’ work performance. (Sagie et al., 2002) For example: The use of participative leadership style could enable managers to effectively motivate and encourage the employees to become self-oriented in terms of discovering new opportunities and challenges by learning, sharing, and integrating his/her new found ideas with those of the staff members. (Sagie et al., 2002; Edmondson, 1999; Erez & Arad, 1986) By establishing open verbal communication among the group members, each of the team members could easily brain-storm and think of a better solution that could improve the entire organizational performance. On the other hand, the use of directive leadership style enables managers to be able to implement a strong organizational commitment among the employees. (Somech, 2005) In some cases, the use of directive leadership style could also enable the managers to make employees participate on achieving the organizational goals. (Kahai, Sosik, & Avolio, 2004) Transactional Leadership Approach Contrary to the soft side of transformational leadership approach, transactional leadership style is more focused on reinforcement and exchanges between the managers and employees in order to enable the entire working group to achieve the organizational goal. (Aarons, 2006) Aside from using reinforcement approach, transactional leaders implement strategies related to goal setting, feedback, self-monitoring schemes in order to achieve the organizational goal. (Corrigan et al., 2000) As part of practicing transactional leadership style, managers normally would extrinsic reward employees in exchange with good work performance such as meeting the organizational objectives and other particular targets. (Jung, 2001; Amabile, 1998; Waldman, Bass, & Yammarino, 1990) On the contrary, this type of leadership approach uses punishment for poor work performance or inability of the workers to meet the organization’s business objectives. (Martin & Epitropaki, 2001) The type of company rewards offered by any organization contributes a lot in the work performance of its employees. In line with this matter, the use of traditional reward system such as compensation and promotions are slowly becoming ineffective in terms of motivating the generation X and Y employees. (Craig, March-April 1989) In fact, several studies reveal that the use of extrinsic or material rewards such as cash incentives could even result to demotivating the employees. (Anthony, Dearden, & Bedford, 1989: p. 57; Cecil Hill, Spring 1989) Because the monetary exchanges associated with the concept of “pay for performance”, employees’ pride and job satisfaction of employees could suffer. For this reason, the application of the ‘pay-for-performance’ concept alone normally fails to work. (Mandel & Katagal, 2007; Summers, 2005) Eventhough extrinsic rewards such as increase in pay or bonus given to employees could still be effective in some cases, a more recent study shows that intrinsic rewards / motivation such as congratulating the employees for a job well done either verbally, written on a personal note, through public recognition, or implementing a celebration for success in work performance is more effective in motivating employees to increase their work performance. (Deckop & Cirka, 2000; Graham & Unruh, 1990; Kanungo & Hartwick, 1987) Aarons (2006) mentioned that the problem with the use of pure transactional leadership style is that managers are not able to make the employees become more creative at work and/or increase their knowledge and skills which is necessary to the success of a business organization. However, this type of leadership approach can still be effective in some organizatinal situations wherein authoritative power is necessary even though there are limitations with the use of transactional leadership approach. Discussion With regards to the importance of organizational learning, managers should also examine the need to establish a well-balanced organizational culture such as the corporate values and behavioural norms. Basically, setting a corporate values and behavioural norms that acknowledges the importance of organizational learning will make it easier on the part of the manager to require employees to undergo necessary training and development. Aside from the significance of organizational culture with organizational learning, a strong organizational culture could also enable managers to be able to strategic changes a lot easier. For this reasons, the pattern of employees’ behaviour should be strong in terms of its consistency with the organizational goal. The use of authoritative power within a business organization is not effective now-a-days since excessive use of power could only de-motivate employees which could result to a declined in the overall business and work performance. Therefore, managers today should lessen the use of authoritative power unless the organizational situation asks for it. As part of globalization, change becomes inevitable whenever managers try to develop and create new business opportunity. In general, it is but normal for some members of the team to have some doubts on whether the new plan would succeed or not. Resistance to change normally occurs when the leaders fail to officially announce the plan of pursuing a new organizational goal. In line with this matter, the use of authoritative power does not really work when managers plan to implement organizational change. In fact, the use of coercion could only worsen employees’ resistance to change. Since employees would feel that they do not have any control over the situation could only make them feel threatened with managers’ persistence on the implementation of organizational change. Instead of spending too much time using coercion or authoritative power within a business organization, managers should shift their focus on understanding the importance of team work aside from the need to select the best leadership approach that could effectively motivate employees to improve their work performances. Because of the tight competition in the global markets, it is necessary for modern managers to promote team building within the organization (Ilies, Wagner, & Morgeson, 2007) followed by empowering employees the right to voice out their personal concerns and suggestions with regards to the plan for a strategic change or important decision-making. For managers to effectively promote team work within a business organization, managers should ensure that there is always a two-way communication between the leaders and employees. This strategy will not only prevent any possible gender-based organizational conflicts but also minimize the incidence of operational errors that may arise due to miscommunication. Selecting a good leadership style based on the managers’ personality and the type of employees the manager is handling contributes a lot to the success of developing and maintaining a positive organizational climate. (Aarons, 2006) Since men are more inclined to think rationally as compared to women, Eagly & Johnson (1990) discussed that male leaders tend to use more transactional leadership approach than transactional leadership style. On the contrary, given that women are more charismatic by nature and have the ability to communicate better than men, female leaders often adapt transformational leadership approach than transactional leadership style. (Bass, Avolio, & Atwater, 1996; Davidson & Ferrario, 1992; Rosener, 1990) Considering the fact that male and female workers reflect different qualities that are both needed in the success of the organizational goals (Rosener, 1990; Ruble, 1983), managers today should be more aware and flexible with the use of either transformation and/or transactional leadership approach. Likewise, having a good leadership skill is necessary in case managers plan to implement organizational change. By having good leadership skill, managers could reduce possible internal conflicts as they try to maintain the operational efficiency of the business. Conclusion Because of the need to increase efficiency at work, managers today have shifted their focus from the use of tradition top-down management approach towards the need to promote team building, self-efficiency, and self-management. In line with these major organizational changes, the use of authoritative power is no longer widely used as compared to managing a business organization several decades ago. There is a huge difference between being a leader and a manager. Basically, a good leader is able to effectively manage people without the need to use authoritative power. On the other hand, managers have the technical skill on how to run a business. Considering the possibilities that some managers today do not to have the qualities and capabilities of a leader, there is a need to educate managers to become aware of the importance of having good leadership skill. Both transactional and transformational leadership approach has its own advantages and disadvantages. In order to maximize the benefits of these approaches, managers should be able to balance the difference between the two leadership styles based on the working environment and types of employees the manager is handling. 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