Law and Management, Law of Contract - Essay Example

Law and Management Management Introduction Leadership is commonly understood as the ability to influence and inspire others to do something. The extent to which one is ready to obey another depends upon the competencies of the leader. To be an effective leader, he/she must possess certain qualities, which are known as the leaders' traits. The quality of leadership is dependent on how the leader views the future and what kind of strategies he follows. The leaders should ask themselves some questions in retrospect to know their efficiency, based on which they should respond to the situation. Leaders aspiring to be visionary should be able to mentor their successors at all levels and look beyond the horizon. To maintain the quality of leadership and lead people effectively, one needs to maintain the time and adopt the change required by the market. To be ahead in the competition, he should be the market leader in product development and technology. The leader should be a continuous learner, who always observes the global economic trends very closely, improves his listening skills and maintains a good relationship with his employees, while showing the empathy that will lead to better organizational culture. This will help to attract, nurture and retain the best talent in the organization. An effective leader should ask himself some retrospective questions like whether he is inspiring his own employees in the right direction or not Whether he is able to communicate effectively his vision, mission and strategic goals of the business, across the organization or not How courageous he is to implement his strategies, even during difficult times How frequently he takes the feedback whether he is in the wrong direction or right How best is he able to take timely decisions And, at the same time, whether he directs his employees towards right path or not An effective leader should maintain the simplicity and should be careful enough in matters of costs for the company and if the company is global he should not think in terms of dollars but should see each pie in terms of that country's currency. This will help him become aware of the local problems and culture that, in turn, will be helpful in solving such issues by adopting a suitable strategy related to that unit. An effective leader lays emphasis on leadership principles, especially on the awesome responsibility of taking care of a good number of people's life and livelihood. According to James C Hunter, the author of "The Servant Leadership", the true foundation of leadership is not power, but authority, which is built upon relationships, love, service and sacrifice. Traditional Leadership Styles Comprehending the types of leadership styles is an essential first step in leadership development, which will help one to decide the leadership style that would work best for oneself and the organization Basically there are three classic leadership styles Laissez Faire, Autocratic, and Participative. 1. The Laissez-faire Style This style works well if one has highly skilled and highly motivated people and where direct reporting is done. The laissez-faire style employs low control; it depends more upon the leader's perception of how much freedom one should give to the people. 2. The Autocratic Style An autocratic leader is one who demands instant conformity to his words. These are the characteristics of autocratic leadership: Directs others what to do; restricts ideas or novel ways of doing things; generates fear of power, nepotism and humiliation; the team does not experience the teamwork sensation; shows immediate discontent at the petite blunder in accomplishing the business goals. This style is the least effective, because of hierarchical decision-making. It slaughters the creativity of employees. The autocratic style is found to be very effective when time is scarce, team members are unknown, persons/team lack expertise and know-how, and also in turning around a company, or in a formidable hostile takeover. 3. The Participative Style This style provides a contented stage between micromanaging and disengaging and is more likely to be seen in organizations that innovate to prosper. Here the people are creative, perform as team, resolve crisis, and improve quality in work, which results in outstanding customer service and augmented profits. Changing Role of Leaders The above leadership styles and the conventional leadership traits are no longer valid in the rapidly changing working environment. Basically, leadership is that quality that deals with human behavior, the most complex and unpredictable phenomenon. Leaders in the modern organization culture and environment must possess some smart qualities and adapt their style to the work environment. Smart leadership has metamorphosed. In the Industrial age, the hierarchical leader had it easy; structures were fixed and clear, and followers had little choice but to obey. As we moved on to the Information Age, the definition of smart leadership rapidly transformed as accessing, sharing, and manipulating data gained primacy. Leadership became a synonym for decision making based on technology and data shifts. The present age is the Age of Interdependence where new skills and intelligence related to connectedness are called for. It is increasingly apparent that our personal decisions impact not just our immediate sphere but our entire world. Leaders are now coordinators of complex systems made up of people, technology, economics, communications and regulations. Deciding the Best Leadership Style There are abundant diverse characteristics to being a great successful leader. A leader's role demands one to exercise different leadership styles according to the circumstances (Situational Leadership). There is no one best style: leaders must adjust their leadership style to the situation as well as to the people being led. It is a precondition of a leader to know and adopt the style that the situation calls for and one that is also based on the three other factors which are: Manager's personal background: What traits, intellectual capacity, principles, ethics, and familiarity does the manager have What are the things that the manager thinks/believes will work Nature of the employees being supervised: Every employee has a different personality and background. The leadership style managers' use will vary depending upon the individual employee and what employees will respond best to. Organizational culture: A company's organizational culture and its interests will have an impact on the manager's actions. Some modern Leadership Styles The Emergent Leadership Style It is a style that emerges once a leader takes over a new team. Groups by default do not accept a new "superior" as a leader. That's because there are some unsuccessful leaders who does not know how to go about leading people once they take over a new team. With advancement of time, the boss emerges with a style, which is recognized by the group to guide them. Authoritarian This style increases the employees' commitment to the organization's goals and objectives. This leader frames the individual tasks within a broad vision and defines the standards providing performance feedback (positive or negative) which orbits around that vision. It works very well in any business situation, especially in a drifting business. This approach gives a notion that the leader is pretentious and unreachable, and is domineering. It also demoralizes the egalitarian strength of an effective team. Democratic Leadership The leader builds trust, respect, drives up flexibility, responsibility and commitment of employees. In this approach, the leader is open to people's ideas and suggestions, and boosts employee morale. This approach is perfect when the leader is vague about the best route to take and needs some ideas and guidance to take a decision. The downside of this style isnonstop meetings with endless pondering on ideas; also, employees do not arrive on a consensus in a short time. This style is unwise to use in a situation calling for crucial decision-making, especially when the employees are incompetent and inept in decision-making. The Transactional Leadership Style This approach accentuates getting things done within the stances of the existing situation; nearly antagonistic to the goals of the transformational leadership. The approach deems that an employee works within the rules and it is more commonly seen in large organizations. Transformational Leadership Style The principal focus of this transformational style is to make change happen smoothly in oneself, others, teams and in business. It generates and maintains a framework that capitalize on people and organizational capabilities to ease manifold levels of transformation and line up them with core values and with an integrated purpose to react to a forceful environment. Charismatic Leadership It is a unique type, which is generally linked with transformational leadership these leaders depend on the persona and energy for success; while enormously powerful, it is really tough to teach. Visionary Leadership This style focuses on how the leader defines the future for their followers and makes them move toward it. For instance, this style makes one's organization emerge as one of most competitive and successful one in the world. Strategic Leadership Exercised by the military leaders and also in many large companies. It demands for competitiveness in managing an organization and the ability to outmaneuver and outsmart the competition. Team Leadership Few years ago, the scenario in organizations all of a sudden had changed scrapping out the post of supervisors; departments turning to teams; people in charge were referred to as team leaders; and the workers became part of a team. Today, companies are becoming smarter in handling teams, and the role of leadership in the transition of a group into a team is tremendous. Influential Leadership Styles Here one looks at the behavior of leaders and how they exercise influence. Cross-Cultural Leadership Found mostly in companies formed out of merger and acquisitions where cultural differences are at the organizational or national level. It cultivates group and individual effectiveness. It also impels for novelty by leveraging multicultural disparity to make the group work sturdy by mutual appreciation and reverence. Few individuals cannot acclimatize to the leadership styles expected in a different culture and it is a state that requires more effective skills and talent to lead the organization successfully. Coaching Leadership A great coach is a leader ingrained with an exclusive talent and skill to educate and train people to reach the pinnacle of success in business. Level 5 Leadership This style is a paradoxical blend of personal humility and professional will with a distinct identity that paves the way towards success in turning a good company into a great company. Servant Leadership It is a style that's quiet a revolution in the workplace and is exercised by increased servicing to the highest priority needs of others and by adopting a holistic approach to work which eventually promotes a sense of community and shared decision-making. This style makes great sense in today's brutally competitive business terrain as it encourages everybody, to contribute to the prosperity of the organization. Conclusion The volatile and the constantly changing business environment in which the leaders find themselves today have meant a change in emphasis in leadership styles. Today, personality and charisma of a person can be an added advantage, but not an essential leadership requisite. Currently, a leader can obtain the confidence, dedication and loyalty of the team members and the organization by effectively conveying the key messages. What matters is, to identify how to achieve the team's loyalty in a manner such that is consistent with one's own leadership style. Successful leaders who candidly assess their leadership style and efficiently reinvent themselves to instigate and motivate the people whom they lead, are to be highly praised and applauded. It is a prerequisite of an effective and successful leader to have trust, integrity and a collective vision between the leader and those who are being led. Leaders who are successful in their endeavors to achieve business objectives and win peoples' hearts will be the ones who are aware and most responsive to the changes. Successful leaders are the ones who synchronize leadership styles with the requirements of the changing business environment. Law of Contract Introduction Law of Contract is a fundamental law applicable to business. It is applicable not only to purchase and sale, but employment contract as well. Contracts are made either orally or verbally, the latter form is mostly advised because it can be referred in future in case of any disputes between the parties. In the words of Frascati Luiqi "The term 'contract' means a promise or a set of promises made by one person to another, which the Courts will enforce. A contract can contain a number of promises or 'terms' to be performed by either party. The person who makes the promise is called the 'promissor' and the person who can enforce that promise is called the 'promissee'. The promises made by one party and its acceptance by another will make both parties binding. The essential elements of a contract are (Frascati Luiqi): 1. Offer An offer is a promise made by one party to another with the intention of acceptance by the latter. However, all promises need not be accepted by the promissee, because he may not be satisfied with the promise or any other conditions. The promise need not be in writing always; an oral promise also does amount to an offer under the Law of Contract. 2. Acceptance When a party accepts the promise by another party on a set of conditions on which both are satisfied, that act is called acceptance. Once an offeree accepts and agrees to fulfill the conditions contained in the offer, the contract is formed and the promise becomes binding. 3. Consideration Consideration is the price paid in return for the promise. An agreement without consideration is not a contract. When one party makes an offer to do something for another, the latter must pay some consideration in return for the offer made by the former. 4. Legal Intent The purpose of entering into a contract must be of legal nature, not related to the personal relationship between the parties. An agreement made out of mere personal relationship cannot be enforceable by law. 5. Capacity Not just anyone can enter into a contract. The capacity to make contract is determined by the maturity and the mental capacity of the parties. "In this sense, maturity is defined as a certain age a person reaches -- regardless of whether he or she is in fact "mature." State laws permit persons to make contracts if they have reached the age of majority (the end of being a minor), which is usually age eighteen" (Fundamentals of Contract Law) 6. Legal object This means the purpose of entering into contract should be one which is protected by law. An agreement for fulfilling personal interest is not a legally enforceable one. 7. Genuine Consent The consent of both parties of contract must be free from coercion, any other impulsion by the other party. The parties must be free to enter the contract References Frascati Luiqi. Fundamentals of Law of Contract. Ezine Articles. Fundamentals of Contract Law. How to know when you have got a deal. Chapter Two. Viewed 7 December, 2008 Leadership Styles. Changing Minds.org. Viewed 7 December, 2008, Leadership Styles. Using the right one for your success. Mind Tools. Viewed 7 December, 2008, Read More