Leadership Theories in Rapidly Changing Markets. Business & Marketing Essay

LEADERSHIP THEORIES
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Leadership Theories in Rapidly Changing Markets
1.0 Introduction
The increasingly globalized world has led to new demands and challenges for leaders. Traditional leadership styles are proving to be less effective in this modern world. For organizations to stay competitive, their leaders need to adapt to styles that conform to current market trends. The form of leadership will determine whether an organization will be successful. In many cases, the collapse of many businesses has been blamed on poor leadership. Leadership theories attempt to explain the characteristics that make a person an effective leader. These theories explain how people can modify their behaviors and become better leaders in their organizations. An effective leader can persuade and motivate his followers to achieve a common objective. So, leaders need to adopt contemporary styles to cope with the demands of the ever-changing market environment. It is essential to understand the various forms of leadership to help create better leaders who can build successful enterprises (Northouse, 2019). This paper seeks to analyze traditional and contemporary leadership theories. Then, it aims to describe an effective leadership approach for today’s disruptive marketplace.
2.0 Traditional theories of leadership
2.1 Trait leadership
This theory is based on the belief that leadership is innate. Leaders are born with natural characteristics or qualities. The presence of these traits is what determines the success or failure of any leader. So, to identify a potential leader, one needs to look at a set of traits common to great leaders. Then, a person can hone these traits and grow to become a leader. Thomas Carlyle formulated this theory in the 19th century. He promoted the idea that leadership comes naturally. He disputed the view that leaders could be trained. Some of the leadership traits include honesty, self-confidence, integrity, perseverance, knowledgeable, charisma, self-motivated, creative, decisive, and flexible (Penney, Kelloway & O’Keefe 2015, p. 33). Trait leadership entails the great man theory. The great man theory advances the idea that great leaders in history, such as Alexander the Great, Abraham Lincoln, and Mahatma Gandhi, were born with the innate ability to lead. They exhibited superior intellect and talents that set them apart from everyone. They assume power and authority despite unfavorable circumstances at the time. This exceptional ability endears them to many people. However, a major criticism about this theory is that many people who have inborn leadership qualities don’t end up being leaders. Opponents further argue that there are many complex factors involved in becoming a leader and not simply having innate traits (Chand, 2015). They argue that it is the society that creates leaders.
2.2 Behavioral leadership
This theory focuses on the actions and reactions of leaders in specific situations. Their response in particular environments determines whether they can be an effective leader. The behavioral theory doesn't promote the assumption that leaders are born. Rather, it extends the belief that leadership is a learnable behavior. The theory emphasizes the actions of leaders rather than their qualities. To display good leadership, the theory suggests that leaders should focus on a particular set of skills. One, they should be focused on strong organizational systems and structures that enable their followers to execute their tasks successfully. Two, they emphasize on the wants and needs of their employees. They are keen to listen to their problems and offer solutions while motivating them to succeed. The best leaders are not those with the necessary innate leadership traits. Instead, great leaders are those who adapt their behavior to fit any set of unique situations. This theory encourages using observation and practice to train leaders. This education can help one develop the core behavioral patterns to create an effective leadership style. A key downside is that the behavior patterns of a leader may not be useful in all set of circumstances (Nawaz and Khan 2016, p. 2). So, there is no specific leadership style that is effective in all situations.
3.0 Contemporary leadership theories
3.1 Situational leadership
This theory suggests a leader assess the prevailing circumstances of their followers then align their leadership style to meet their demands. Situational leadership is a flexible model. It doesn't solely rely on the inherent traits or behavior of the leader (DuBrin, 2013). Rather, it is focused on adapting leadership to the specific needs of an organization. This leadership style is suitable in dealing with an ever-changing environment that presents numerous situations and challenges. This theory requires a leader to be aware of the specific time to change their style. This is because no style can solve all manner of situations. The model was pioneered by Kenneth Blanchard and Paul Hersey in the 1960s. Situational leadership emphasizes the leader changing their style to suit their followers. It classifies the best leaders as those with the capacity to adapt their leadership style to the prevailing situation (Walls, 2019, p.31).
By observing the traits of the followers, a leader uses a style that influences the followers to perform their tasks effectively. Hersey and Blanchard offered four main leadership styles within this model. First, telling, that is, the leader informs the followers of his goals and intentions. Second, selling a leader persuades their followers to support their ideas. Third, participating, the leader promotes active engagements by group members by encouraging them to share ideas. Fourth, delegating, the leader assigns more responsibility to their followers. So, this various leadership style depends on the readiness or maturity levels of the followers. Critics of situational leadership argue that this approach doesn't allow a leader to use a style that suits their personality or inherent qualities. Another criticism is the approach is short-sighted as a leader focuses on how to adapt to immediate situations (Shonhiwa, 2016, p. 37). This may cause a leader to lose the attention of an organization's long-term needs.
3.2 Transactional leadership
This type of leadership is centered on a rewards and punishment model. Leaders can use this approach to motivate followers in the short term. It's particularly useful during emergencies or crisis cases. This incentive-based model supports transactional leaders’ aim of getting the best from their followers. Transactional leaders ensure that their followers conform to existing organizational systems and procedures. They help an organization maintain its standards through active group and individual performance management approaches. Performance reviews are some of the tools transactional leaders use to manage an organization's operations. They help preserve the existing routine within a business. The approach opposes any deviation from the status quo, and change leads to immediate corrective measures. Max Weber and Bernard M. Bass are the chief pioneers of the transactional leadership theory. This approach is useful in organizations that require strict adherence to rules and requirements such as large multinationals, health institutes, athletic teams, and military establishments. Transa...