The leadership theory that appeals me the most is behavioral theory. Behavioral theory emphasizes that leaders are not born instead they are made. The theory is indicative of the fact that successful leadership can be achieved via learnable and identifiable behavior (Yukl, 1971). This theory, however, does not consider inborn abilities and traits, but look at the actions or acts of leaders. This theory suggests that strong personality, self confidence, and ego with positive attitude are required for leadership. Behavioral theory believes that behavior of leaders directly exert their influence on efficiency and effectiveness of workgroup. Further, this theory describes that behavior of a leader is concerned for people, coordination, and collaboration (Conger & Kanungo, 1987). Behavior theory of leadership has concern for people, task, participative leadership, directive leadership, democratic leadership, trustworthiness, confidence, introduction of new ideas, remaining calm in stressful conditions and situations, and taking charge when required. Leadership in Wal-Mart seems to exemplify the behavioral theory, while the direct contrast can be seen in Apple Incorporation.
Leadership of Sam Walton represents participative, which is also called democratic leadership. By adopting participative leadership, Sam Walton gave importance to team members’ input, but the responsibility and authority of ultimate decision rests with Sam Walton because in the participative leadership, the leader has the authority of making final decision. This type of leadership helped in increasing morale of Wal-Mart’s employees. It is because in this type of leadership, employees are allowed to contribute in the decision making process, which creates a feeling in employees that their opinions and suggestions are given importance. This leadership style also helped employees of Wal-Mart to accept changes, and adapt to changing environment of the organization easily. Each employee played his/her role when company required changing. Furthermore, this leadership style helped the company in overcoming the challenges of the organization required decision making in a short period of time. The open door policy of the company is representative of the fact that all the employees and associates of the company are motivated for sharing their concerns, expressing their ideas, and speaking in a free manner that help in improving the daily operations.
This leadership style of behavioral leadership theory made managers of the company open minded and they treated all discussion with positive thinking. Walton has made a policy of Listening to associates because he regarded associates as the generators of innovative and best ideas. Sam Walton’s leadership is also democratic in a way that he ensured participation of all employees in decision making process. With the help of democratic leadership, Walton managed professional as well as experienced staff in an effectual manner. He ensured high employee participation confirming democratic leadership style. Because of adoption of this leadership style, the company becomes capable of developing its employees in order to ensure full satisfaction of stakeholders and business. Major aspects of democratic leadership approach that are found in Wal-Mart and encourage employee development are talent spotting, coaching and monitoring, and support network.
Talent spotting in Wal-Mart comprises of identification of talented people who are capable of making essential contributions to the organization. Coaches and mentors in Wal-Mart are people acting as guides and advisors, and guide those who are not much experienced as compared to them. Coaching and monitoring, however, takes place in Wal-Mart via advice, informal conversations, and structured feedback. In order to ensure effectual support network, Wal-Mart’s managers focus on regularly meeting with other managers and employees in order to share important information, issues, and ideas. This can be considered from an example that the retail managers of Wal-Mart arrange meeting once in a month with the Retail head in order to share their insight, and also to evaluate retail plans operationally as well as strategically. Democratic and participative leadership styles allowed ensuring culture in the cooperate values such as use of term associates instead of employees, and people division instead of human resources. The power distance is lower in Wal-Mart because of democratic leadership style. This leadership also allowed effective communication within and outside the organization, and allowed its employees to achieve their goals. This leadership also allowed the company to focus on visionary, strategic, ethical, charismatic, and shared aspects of management. The employees of company showed their alignment and dedication to the values, principles, rules, and mission of the company as a result of this leadership style, which ultimately paved the way to improvement in performance of the company.
But, Nokia failed to conduct business operations in an effective manner with adoption of participative leadership of behavioral leadership theory. Company’s leaders failed to make appropriate decisions as a result of which they become incapable of maintaining the firm. Managers of Nokia took opinion from employees, but the final decisions that they made did not work, participative leadership delayed the process of decision making because of which urgent decisions were not made in a timely manner. All these pave the way failure of the organization. Every employee of the company was of different opinion as a result of which conflict aroused. The leaders of the company remain unsuccessful in making adequate decisions regarding company operations. However, personal rifts among team members also occurred as a result of participative leadership. leaders of the company did not realized the participative strengths while making decisions as a consequence of which they failed to compete in the marketplace, and also failed to satisfy customers. Indecisiveness occurred because of democratic or participative leadership in Nokia. There were some situations, in which directive leadership was required in order to ensure smooth functioning in the company, but company focused on democratic leadership because of which it lost its market share, and competitors succeeded in achieving remarkable market share. In democratic and participative leadership style, leaders mostly consider experienced employees as their peers (Iqbal, Anwar & Haider, 2015). Similar attitude was prevailing in Nokia, the company relied on old and experienced employees, and did not pay attention to opinion of young employees who were well aware of changing technology, ultimately the company became laggard in the market of smart phones.
I would practice democratic leadership in my future job ensuring decision making that is favored by majority of employees. Further, I would implement this style by winning cooperation of my team members, and by motivating them in a positive manner. I would not focus on unilateral decision, but consider the choice of my peers, and their opinion regarding the matter. I would ensure consultation and persuasion. Consultation would be ensured before making a decision, and persuasion would be made certain by seeking to persuade and convince others that the decision is effective as well as correct. I would use this style when adopting change in the company so that employees could be motivated by mentioning that the change is adopted for their betterment as well as for the betterment of the organization. I would try to bring the best from the professional and experienced employees, by taking their views, and also take opinion from the employees having less experience or no experience because creative idea can come from any employee working in the organization. Moreover, I would use democratic leadership style in order to ensure open communication so that everyone feels comfortable. I would focus on laying out all the considerations so that every employee in the organization can examine. Further, I would focus on productive discussion, so that everything regarding topic can be discussed. However, I with the help of this style, I would be ready to commit because there are several responsibilities. Nokia failed to show commitment as a result of which devastation resulted. Moreover, I would practice this leadership style by creating a healthy environment, entertaining and considering all the ideas that are put forward by employees. I would use this style by delegating the responsibility, and ensuring empowerment of group members. I would also focus on training and educating employees in order to make them capable of completing delegated tasks in an effectual manner. I would use consensus of opinions in order to solve complex problems, and encourage creation of an innovative and creative environment. I would use this strategy of leadership by improving the morale of employee by giving them voice, and ensure good performance of all employees so that they get an opportunity of increasing their income. Further, with the help of this style of leadership, I would motivate employees to stay with the organization in order to see their opinions and plans leading to success of the organization.
References
Conger, J.A., & Kanungo, R.N. (1987). Toward a Behavioral Theory of Charismatic Leadership in Organizational Settings. Academy of Management Review, 12(4), 637-647
Iqbal, N., Anwar, S., Haider, N. (2015) Effect of Leadership Style on Employee Performance. Arabian Journal of Business Management Review, 5 (5), 2-6
Yukl, G. (1971). Toward a behavioral theory of leadership. Organizational Behavior and Human Performance, 6(4), 414-440
