Introduction
Leadership is an important factor in the development of a business enterprise. Leadership becomes even more important when the business experiences growth. The growth of a business enterprise results in new and different dynamics. It is imperative that the business leader also grows in terms of philosophy and skills in order to lead the business under the new dynamics. Burke, Clarke, Barrow and Molian (2008) argue from a different perspective. They hold that during the growth of a business entity, a leader has two roles to play. Firstly, the leader needs to articulate the vision and direction of the business (Burke, Clarke, Barrow and Molian, 2008).
Secondly, the leader needs to inspire his follower, sell the idea of the growth of the business and inspire them into believing in and an enacting the idea. To achieve ad congruence in aspirations, the business leader also needs to grow in his leadership philosophy. In this regard, this report outlines and discusses the findings of a partnered interview where the focus was the leadership of an entrepreneur. The element of the interview was determining the leadership style of the entrepreneur, the impact it has had on the business, and the modifications made to the leadership style in response to changes resulting from the growth of the business. The report will also be tempered with personal analysis and reflection of the concepts in leadership and business growth.
The Process of Finding a Partner
The success of this exercise was dependent on a cohesive working relationship with the interview partner. The values considered in choosing the partner for this exercise include intrapersonal and interpersonal communication, diligence, and industry. The desired partner was someone with whom there could be a cohesive working relationship, complementary skills, and a work ethic. The process involved a consultation with various students, some of whom I have been within other groups. Various students were interested although they did not satisfy the inclusion criteria identified above. I found one student with whom I felt confident working. The student was the partner for the interview upon which this report is based.
Identifying an Entrepreneur
The desired entrepreneur for this organization was the founder of a mid-sized in the United Kingdom operating in any industry. The inclusion criteria reflect the input of my partner and I. The process of identifying the entrepreneur on whom the questionnaire and the interview schedule would be administered entailed browsing the World Wide Web for organizations that met the inclusion criteria. The inclusion criteria were that organization to be chosen had to have been in operation for at least seven years, experienced growth in terms of the number of operations, new markets or production schedules.
After a shortlist of the probable organizations, we made contact with the founder of the organization and requested his participation in the exercise. We explained that the exercise was part of a school activity. We also guaranteed that the information collected through the exercise would be used discretely to protect the organization. The entrepreneur agreed to participate provided that anonymity was maintained. He explained that he would prefer the information about the peculiarities of his enterprise to remain unknown. However, we can report that M. Hughes operates an import-export business dealing with electronics and electronic equipment.
Developing an Interview Schedule of Questions
The accuracy and credibility of the information collected were dependent on among other factors the content validity of the data collection instruments. We resolved to use a validated questionnaire developed by the California Department of Public Health for the assessment of the leadership styles. The questionnaire was modified to suit the current purposes. However, we exercised caution to retain the content so as keep maintain the validity of the data collection instrument. The content validity of the interview schedule is also a desired characteristic. The United States Army Corps of Engineers developed a validated interview schedule for assessing leadership styles. We chose and modified questions from the interview schedule to suit the current purpose while also exercising caution to retain the content validity.
Analyzing the Interview
The interview was very fruitful due to the cooperation of the entrepreneur (M. Hughes). The entrepreneur to whom the questionnaire was administered and also took part in the interview scored on the very low range for the Laissez-Faire and authoritarian leadership style. However, his scores for the democratic leadership style were in the very high range category. This is an indication that his leadership style as determined by the scoring of the responses to the various questions posed to him was the democratic leadership style. In this approach to leadership, the entrepreneur still reserves the final responsibility for the growth and direction of the business (Pride, Hughes & Kapoor, 2010, p.179).
Nonetheless, the business leader still delegates some of the authority to other people within the organization. This is in recognition of the skill and ability of the other members of the organization to contribute effectively towards the benefits of the business. This was evident in the interview with M. Hughes. For instance, when prompted for his response to the desire for the employees to participate in the decision-making process, M. Hughes (22 March, Personal communication) strongly agree with this statement as a fair assessment.
In fructifying his response, M. Hughes (22 March, Personal communication) confided that this was one of the strategies used in his enterprise to motivate and inspire commitment from his employees. These are sentiments with which Leat (2012, p.319) agrees. The author argues that the influence of the employers on the decision-making process is inevitable in organizations whose models for success are pegged to the exceptional performance of the employees. Leat (2012, p.317) proposes three models through which employees can participate in the management and decision-making process.
A co-management approach is an approach in which the right to determine the sway of the decisions rests with both the management team and the employees (Leat, 2012, p.317). In this approach, the employee has a considerable control of the decision-making process because his consent is required for the passing of the decision. This approach to employee involvement and participation is not favourable for a business leader with a vision for the direction to be taken by the business.
Alternatively, M. Hughes uses the consultative participation approach in which his employees derive information from him and also get an opportunity to contribute their views regarding certain areas of decision and also communicate their reservations about certain trends (Leat, 2012, p.317). However, the authority for making decisions remains vested in the business leader. This approach was suited for the enterprise because while the business leader retained the authority to make the decisions regarding the direction of the enterprise, the prerogative of the employees was still guaranteed.
M. Hughes (22 March, Personal communication) also gave his take on the fairness of the assessment that business leaders should offer guidance to the employees whenever it is needed while refraining from applying unnecessary pressure. This is a statement with which M. Hughes (22 March, Personal communication) agreed. He also noted that while pressure was required from time to time, it was imperative to be conscious of the point at which continued pressure was counterproductive. He also argued that the use of pressure was not supposed to be an everyday practice. This argument is in line with recommendations of UCL (2005) regarding the practices that managers can use to manage the pressure and stress of their employees.
Figure 1: The pressure/performance curve
Source: (UCL 2005)
Figure 1 above shows the effect of continued pressure on performance. It shows that when pressure is optimum, the performance of the employees is at the peak. However, the continued pressure at this point does not result in an increase in the performance by any unit, marginal or otherwise. On the contrary, continued pressure results in exhaustion, which then causes the performance of the employees to decline. UCL (2005) argues that managers should provide their employees with a period to rest and recover to avoid the negative effects on the job front and the health of the employees that can result from unrelenting pressure.
It is for this reason that M. Hughes (22 March, Personal communication) encourages his managers to manage the work schedules to allow enough time for the employees to complete the assigned tasks at a pace where quality is not compromised, and they can also learn. Concerning offering guidance, M. Hughes (22 March, Personal communication) talked at length against aloofness of his managers. He argued that the managers were supposed to be readily available to consult with the employees whenever guidance was required.
The interview also sought the input of the business leader on the value of communication in his enterprise. M. Hughes (22 March, Personal communication) underscored the importance of communication. He argued that it was through efficient communication that he articulated the vision and direction of this enterprise to his managers. It was through efficient communication that the conflicts and problems within the enterprise were solved. M. Hughes (22 March, Personal communication) also argued that effective communication enabled the managers to learn about the needs of the employees. This positions the managers to help them satisfy these needs. These sentiments are echoed by Picot, Reichwald & Wigand (2008, p.68) who hold that communication in the organization is important to identifying the impediments to performance. Picot, Reichwald & Wigand (2008, p.68) also hold that communication within the organization helps satisfy the need and supply of information.
The growth of the business was highlighted earlier as a source of changes in the dynamics with which managers and business leaders have to deal. The need for change in the leadership style was also highlighted as a possibility to adapt to the new changes and to also prepare the employees for the changes resulting from the growth of the business. When prompted on whether he had to change his leadership style to adapt to the changes emanating from the growth of the business, M. Hughes (22 March, Personal communication) confided that he had to change from the authoritarian leadership style to the democratic style that he practices at present.
M. Hughes (22 March, Personal communication) further confided that he attended a leadership seminar to prepare himself for the expansion of his business. It is in this seminar that he learned of the inadequacies of the authoritarian leadership style for the growth of his enterprise. He also shared his former belief that he knew the vision of his enterprise what was required to achieve this vision. It is this belief that led him to use the authoritarian leadership style with the hope that he could manage his employees to achieve his goals.
However, he was dissatisfied with the performance of his employees. As a solution to the problem, M. Hughes (22 March, Personal communication) shared that he sought a professional to diagnose the problems before he undertook the expansion of the enterprise. The professional diagnosed the problem to be the misfit between the leadership style and the organizational goals. He further recommended that M. Hughes (22 March, Personal communication) attend a leadership seminar where he learned about the democratic leadership style.
Jolly (2012, p.152) finds that leadership development is necessary for businesses that are on the path towards growth. The author argues that business leaders should invest in the development of the leadership styles so as to enhance the success of their enterprises. These arguments are based on correlations between the development of leadership and management and the performance of the organization. Jolly (2012, p.152) found that there was an increase of employee performance of 32% in organizations in the United Kingdom that engaged in leadership and management development activities.
Jolly (2012, p.152) further found that the increase in the organization performance in the same organizations when leadership and management development activities were employed was 23%. The statistics above relate to the organizations of all size and in all sectors in the United Kingdom, hence validating the recommendation for leadership development for M. Hughes. These statistics also validate the communication by M. Hughes (22 March, Personal communication) that change in leadership style has improved the performance of his enterprise and also made the expansion profitable. The positive impact on the performance of the enterprise is the result of better leadership.
Reflection on Personal Development
The interview with M. Hughes brought focus on the personal leadership styles and the need for personal development in readiness for future challenges. The awareness of M. Hughes of the leadership style he employed when he first founded his company was the first step towards the realization of the need for leadership development. I have been appointed the group leader for many of the school-based groups in which I have been involved. In retrospect, I have employed the Laissez-Faire leadership styled. The rationale for this style was that all the students were innately motivated to perform the tasks assigned diligently because they had a bearing on their academic performance. Whenever the approach did not work, I would choose other students for the next academic group.
I reckon that in M. Hughes case, my actions amounted to dismissing the employees who did not show enough industry as per my standards instead of looking for other ways of motivating them. The arguments of Schyns & Hansbrough (2010, p.155) made even more sense. The scholars argue that some approaches to leadership amount to destructive leadership. The destructive elements are characterized by the passive direct and indirect behaviors that personified my leadership style. The scholars described the Laissez-Faire leadership as amounting to avoiding leadership, arguments that reflected on my motivations. I did not fell it was in my duty to organize students to perform tasks. I reckoned that the knowledge that the tasks contributed to their academic performance would inherently motivate them.
Owing to this exercise, I now realize that my “hands off” as described by Cragan, Wright & Kasch (2009, p.186) was a missed opportunity for personal development. Like M. Hughes, I realize that my leadership style is not adequate for a business leader in the dynamic environment in which contemporary businesses operate. I reckon that the realization presents an opportunity for personal development.
Conclusion
Leadership is different from management. While the philosophy of management is short-term, leadership applies a philosophy that has a long-term connotation. Leadership entails the enactment of activities today that will benefit the workforce and the organization in the future. The interview with M. Hughes exemplifies this argument. A personal realization that his workforce was not performing at the level he wanted led to the diagnosis that his leadership style did not fit his organizational goals. The diagnosis opened up a period of leadership development. The impact of the change in leadership style following the leadership development seminar has been positive for the enterprise. One of the effects of the change in leadership style has been the expansion of his business. The lessons drawn from M. Hughes led me to reflect on my leadership style. I have missed various opportunities for personal development. I also realize that the Laissez-Faire leadership style is not adequate for the dynamic contemporary business environment. I resolved to engage in personal development with my earlier chance being the next academic group.
References
Burke, G., Clarke, L., Barrow, P., and Molian, D. 2008. Growing your Business: A Handbook for Ambitious Owner-Managers. London. Routledge.
California Department of Public Health. n.d. Leadership styles questionnaire. [PDF]. Available at:< https://www.cdph.ca.gov/programs/CalPIM/NAACHO%20Training /3.%20Leadership%20Style%20Assessment.pdf> [Accessed 23 March, 2016].
Cragan, J. F., Wright, D. W., & Kasch, C. R. 2009. Communication in small groups: Theory, process, skills. Boston, MA: Wadsworth Cengage Learning.
Jolly, A. 2012. The growing business handbook: Inspiration and advice from successful entrepreneurs and fast growing UK companies. London: Kogan Page.
Leat, M. 2012. Exploring employee relations. London. Routledge.
Picot, A., Reichwald, R., & Wigand, R. T. 2008. Information, organization and management. Berlin: Springer.
Pride, W. M., Hughes, R. J., & Kapoor, J. R. 2010. Business. Australia: South-Western/Cengage Learning.
Schyns, B., & Hansbrough, T. 2010. When leadership goes wrong: Destructive leadership, mistakes, and ethical failures. Charlotte, N.C: Information Age Pub.
UCL. 2005. Managing Pressure and Avoiding stress. [Online]. Available at:< http://www.ucl.ac.uk/hr/occ_health/health_advice/managing_pressure.php>. [Accessed 23 March, 2016].
United States Army Corps of Engineers. n.d. Leadership interview questions. [PDF]. Available at:< http://corpslakes.usace.army.mil/employees/career/pdfs/ LeadershipInterviewQuestions.pdf> [Accessed 23 March, 2016].
Appendices
Appendix I: Questionnaire
(Please indicate to degree to which you agree or disagree with the following statements)
There is a need to closely monitor and supervise employees in order for them to complete the tasks assigned
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
Employees have a desire to participate in the decision-making process
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
In situations that are challenging, a leader should leave the employees to develop solutions to the problems on their own.
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
A fair assessment of the labor force is that most employees are lazy.
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
A key aspect of good leadership is offering guidance when the employees need it without necessarily applying pressure.
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
A good leader remains aloof to allow the employees do their work.
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
It is imperative to reward and punish employees as appropriate to offer the motivation required to meet the established goals and objectives.
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
A fair assessment is that the preference of most employees is a leader who communicates frequently in a supportive manner.
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
Leaders must allow employees to evaluate their performance.
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
There is a prevalent feeling of job insecurity among most employees and hence need to be guided and directed.
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
A business leader will help his employees understand that that it is their responsibility to complete the tasks to which they have been assigned.
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
A business leader should allow all the freedom for the employees to develop solutions to the prevailing problems
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
The achievements of the employees are to be judged by the leader.
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
The leader is tasked with helping the employees to find their motivation and passion.
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
It is a fair assessment that workers would rather have minimal participation of their business leader.
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
The key to effective leadership is issuing orders and clarifying the procedures required to implement the orders.
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
It is a fair assessment that employees have the requisite competencies to complete the tasks to which they are assigned proficiently.
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
It is a fair assessment that employees are best left alone.
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
Key for the Questionnaire
Authoritarian leadership – summation of the scores for the responses in questions A, D, G, J, M, and P.
Democratic leadership – summation of the scores for the responses in questions B, E, H, K, N, and Q.
Laissez-Faire leadership – summation of scores for the responses in questions C, F, I, L, O, and R.
Interpretation of the Questionnaire
26 – 30: Very high range
21 – 25: High range
16 – 20: Moderate range
11 – 15: Low range
6 – 10: Very low range
Appendix II: Interview Schedule
(Kindly answer the following questions to the best of your ability)
How does your staff perceive you as a leader? Kindly illustrate your answer.
It is difficult to give a personal evaluation. However, I believe my employees think of me as a flexible leader, supportive, and goal oriented. I also believe that my employees know of my regard for their wellbeing. It is not uncommon for them to come to me with problems that are not related to the enterprise. While I do not encourage this, I listen to them and help where I can.
Upon which values do you base your leadership style? Kindly illustrate your answer.
I base my leadership style on values such as respectnot just for the person, but also for their ideas. You will find me with lower cadre employees exchanging ideas in the business premises. I have realized that some of them have revolutionary and innovative ideas. I also value commitment, honesty, and integrity.
How have you managed situations in which you have failed in your capacity as a leader?
Firstly, I believe that there is good to be found in failure. Whenever I have failed to lead my team to achieving the established goals, I usually call for a meeting with the entire labor force. We analyze the reasons for the unmet goals. We also draw lessons from the failure and turn them into strategies to avoid the recurrence of the situation.
How does your capacity as a leader relate to the roles of your managers? Kindly illustrate your answer.
I hold regular meetings with my managers. These meetings serve as briefing points where they inform me of the progress in the different departments. They also inform me of the challenges facing the different departments. This meeting also serves as the debriefing point for the monthly goals. In addition, I give my managers the opportunity to devise strategies for the growth of the organization. They then present these ideas to me for vetting and approval.
How do you inspire dedication and commitment from your employees?
I have invested in various employee recognition programs. I use a combination of monetary and non-monetary incentives to motivate the employees. I also provide them with opportunities for career development through periodic training. I also pay them well. I have found that well paid employees are well motivated.
Throughout the period of growth, how has your leadership style changed in response to the new dynamics created by the growth?
I changed my leadership style just as I was about to expand the reach of the business. The performance of the enterprise was stagnating and a professional I hired diagnosed my leadership style to be the problem.
How have you prepared your employees to transition through the various phases of change?
I have invested substantial sums in the training of the employees in leadership development of the employees. I felt it was important to understand the need for the change in leadership style. I believed that if they understood the concept of different leadership styles, they would be in a better position to embrace the changes.
How has your leadership style impacted the enterprise?
The impact has been momentous. Earlier in the life of the enterprise, I employed the authoritarian approach to leadership. I had just conceived the idea for the business and I believed that the employees needed to take orders from me on what to do. The performance was still unimpressive. I contracted a professional to diagnose the problem and surprisingly enough, my leadership style was highlighted as inadequate and a major contributor of the problems. I was preparing to expand at this time. I thought best to take a leadership course before expanding. It is in the seminar that I learnt of the benefits of the democratic leadership style. Since then, it has been good. The performance has been exceptional.
