Running head: LEADERSHIP THEORIES IN AN ORGANIZATION

Leadership Theories in an Organization: Servant vs. Autocratic Leadership

Robert Guajardo

South Texas College

LEADERSHIP THEORIES IN AN ORGANIZATION

I am currently the Chief Financial Officer (CFO) of an organization and serve on the

executive board. The organization that I represent has been running for 20 years. For the past 5

years, we have noticed a decline in revenue, and have not been making profit like we used to.

We are trying to come up with new ways to get ourselves back into the limelight of the public,

but nothing seems to be working. As the CFO, I have to decide whether to have our company

bought out by someone else, or cut the pay of most of our employees so that we can then invest

that money for newer technology. With that, I am getting added pressure from the other

executive members stating that if I do not make the right decision and we do not see an increase

in profit soon, that my job will be at risk. The company who is requesting to buy us out are

giving me a timeframe of 2 weeks to make my decision. The employees have got wind of the

situation and are now threatening to leave the company if we do not let them know of an answer

soon. In short, the sole decision is up to me and I need to make it fast for the benefit of the

organization. As a leader, this decision is deeply problematic because it is continued added

pressure from all angles. I have a time constraint to decide from the company considering to buy

us out, and the executive board want me to make a decision that would best benefit the company.

With the employees of my organization now understanding what is going on, it would make

sense for them to fear for their jobs. I need to make a decision that would benefit the

organization overall and everyone involved, and make the company continue exceeding in profit

like we once did 20 years ago.

As a leader, I would first weigh out my options and decide what would be the best course

of action. With the focus on servant leadership, I will hear opinions from my team members and

discuss with them how to proceed. This type of leadership style will allow me to serve the people

that work for me and get a clear understanding of how they feel, and what they want. As a
LEADERSHIP THEORIES IN AN ORGANIZATION

servant leader, I will primarily focus on the growth and well-being of the people and the

community of the organization. I will continue to share power and put the needs of others first

and help people develop and perform as highly as possible (Greenleaf, 1970, Servant

Leadership). This modern style of servant leadership, is closely associated with Confucius’

theory of leadership. Confucius states, “When it is obvious that the goals cannot be reached,

don’t adjust the goals, adjust the action steps” (The Analects of Confucius, Book IV). This quote

supports his leadership theory and his decision-making paradigm saying that right now it is a

tough time for everyone, but if we all come together and decide on an action plan that best fits

the needs of everyone, then all will be happy and we can go ahead and proceed with this

decision. Confucius was all about his followers and making them heard. He wanted to use them

to understand how to proceed the best possible way. In relation to Confucius’ leadership theory, I

have sought the advice from my followers. Together, we have decided to ask how much money

the company is considering to spend on us, to buy us out. Also, we have decided to look into

renting medical appliances to generate revenue until we have enough money to purchase our own

machines. We are also going to focus on our current healthcare practices, with continuing to

make relationships with our clients and patients. These relationships will allow continued

customer acquisition. Lastly, I have notified the employees that this decision is not just mine, but

it is ours. I have urged them not to seek jobs elsewhere and to focus on our current task at hand.

With these discussions being part of the planning phase of the decision-making process, once we

have gathered all the necessary information, that will allow us to make an educated decision on

the process moving forward.

After the planning phase of the decision-making process, we will go into the action

phase. The action phase will consist of deciding, and then moving forward with the decision as a
LEADERSHIP THEORIES IN AN ORGANIZATION

group. The company that wants to buy us out has given us an amount for the total buyout. We

have countered this amount by asking that we have a joint organization with 50/50 say in all

decision makings for the combined organization as a whole. With our current focus on the

medical testing we currently do, we have generated enough profit to purchase half of the total

amount of modern machines that we need. With us purchasing half, we can then continue to

generate more profit for the future of the organization. As I looked for my team on advice on

how to proceed, the employees have stopped looking for jobs, and put their efforts into turning

our organization into something better. They realized that they are part of this company and want

to do everything they can to bring it back to life. This is the best solution for this problematic

scenario because it focuses on what we want as an organization. We have come up with this

decision together, and have explored everyone’s ideas and concerns. I have to be understanding

towards everyone and let them know that this decision was based on the organization and

executive team as a whole. With the case scenario, the solution that I proposed aligned with

servant leadership styles because I was able to seek my team for advice and I emphasized the

importance of participation by structuring decision-making bottom-up.

The solution to my scenario would be most critical under Hobbes because his leadership

theory focuses on the importance of self-actualization, by focusing on self-interest first. Also, his

theory makes decisions by importance of direction, by structuring decision-making top-down.

Hobbes states, “The Obligation of Subjects to the Soveraign is understood to last as long, and no

longer, than the power lasteth, by which he is able to protect them. For the right men have by

Nature to protect themselves, when none else can protect them, can by no Covenant be

relinquished” (Leviathan, Hobbes, Chapter XX, OF DOMINION PATERNALL AND

DESPOTICALL). In this quote, Hobbes is making a connection with sovereign’s power with an
LEADERSHIP THEORIES IN AN ORGANIZATION

argument he makes for the right to self-defense. He goes on to say that under the laws of nature,

it is against reason for a subject to transfer away his right to self-defense. It is the power of the

sovereign, which is greatly influenced by authorization, that is limited by the interests of the

subjects in self-preservation. He is making a clear statement that the power of sovereign is

working, and that it should not be taken away from anyone. Hobbes’ theory of leadership focuses

on a direction that is about setting the course of action for the organization. As a sovereign

leader, it is important for them to ensure that decisions are taken on time, and continuously steer

the organization in the right direction. This type of leadership style takes on responsibility of

judging the variety of options and determining the best way forward. For Hobbes, if he was put

in this scenario, he would decide on an act of fulfilling one’s own potential. It is important for

him to fulfill his potential by developing himself and realizing his dreams. Also, it would be best

for him to serve his own interests by engaging in those actions that will help people be who they

want to be. In this case, it would be putting him in the best position to keep his job and continue

making money for the organization. With his decision, he would not want any backlash from

anyone. This greatly conflicts the way I took the approach in the scenario because I went with a

servant leadership that focuses on making decisions with the team, rather than solely having the

final say on the decision.

In conclusion, a deeply problematic scenario can be looked at in different ways. Two

leadership theories were applied for this scenario, Confucius and Hobbes. Confucius’ leadership

theory is associated with the modern-day servant leadership, whereas Hobbes’ leadership theory

is associated with the modern-day sovereign leadership. A solution was proposed in this scenario

that focused on deciding as an organization, and seeking the advice and expertise from others. A

fierce critic to this approach focused on what options were presented, and what would be the best
LEADERSHIP THEORIES IN AN ORGANIZATION

way to proceed moving forward. Rather than deciding as a team, this approach consulted with

the team, but then had the final say on this decision. As a leader, you will continuously have to

evaluate decisions and understand the best approach for them. Using a decision-making

paradigm, and leadership theories of thinkers, you can best understand the situation and come up

with a decision that is best for the organization and yourself.

 LEADERSHIP THEORIES IN AN ORGANIZATION

References

Confucius, & Waley, A. (2013). The Analects of Confucius. Charleston, SC: CreateSpace

Independent Publishing Platform.

Greenleaf, R. K. (2008). The servant as leader. Westfield: The Greenleaf Center for Servant

Leadership.

Hobbes, T. (2012). Leviathan. Oxford: Clarendon Press.