American college of technology

MASTERS OF BUSINESS ADMINISTRATION

Management Theories and Practice

Name Israel samuel

Id number RMBA-410-21A

aSubmitted to Dr.Lemma Nigussie

 Analyzing of leadership
Introduction
One of the most important concept and activity that’s carried out in any type of
organization is leading and its also one of the five most important components of
management which are planning ,staffing organizing and controlling .one should
note that non of this are not any more or less important than the other process in
the managing any sort of organization what so ever for a firm to continue successful
and competitive it needs to have people who have the best leadership quality to
motivate the employee and guide them to the company’s Goal that was set at the
beaning .

meaning & importance of directing

Directing comes to action when the possibility or question of route to take or what
specific decision to make in order to take the right direction on every process of
organizational action.in the process of directing there are many sub categories that
makes it up which include but not limited to Instructing, guiding, controlling and
influencing
direction is a management function this is carried out and completed often at top
stages of management and on the basis of which permeates down into the decrease
ranges. it's miles a non-stop technique that exists so long as the enterprise exists and
is that characteristic that initiates and commences action toward a set objective or
aim. It gives meaning to corporation and planning through bringing collectively the
complete organization to the undertaking of achieving a goal
Directing as on e of the management function holds the process and techniques
used in issuing instructions and making sure that operations are carried as planned
at the beginning
The way it is mostly carried out is by letting people know what is to be done and
briefly showing them how to do its.
 Importance of directing
Reducing the amount of resource waste
It consists of laying out the obligations of each subordinate clearly in this manner of
avoiding excess wastage since total avoiding is impossible, duplication of
endeavors, etc. and utilizing the assets of men, machine, materials, and cash within
the greatest conceivable way. It makes a difference in decreasing costs and
expanding benefits.

Making the enterprise objective oriented

It is the process of directing that helps the firm reach those goals and gets them
achieved. It the major process that aids in holding the goal
with which the business process begins.
Coping up with the Changes
When their I difficulties for firm that is posed b y the employees when they face new
environment or substantial change the leader or the manager could direct them the
right track with the proper guiding proper communication and the right way of
motivation suitable for every individual
Helps the process of controlling and coordinating
The process of directing clearly shows the standards and specification of what is to
be expected from every individual in the enterprise . This instruction or direction
given ensures all the activities carried out are according to the company goals.

Leaders and leadership

leadership
Leadership ability and capacity of a company's administration to set and accomplish
challenging objectives, take quick and unequivocal activity when required, outflank
the competition by setting and achieving goals, tackling the competition, and solving
problems decisively and quickly within a given amount of time,it is also a major
quality that’s important for directing the company. employees to the direction
leadership is also the achievement of an objective through the heading of
individuals collaborating with having The individual who effectively marshals his
human collaborators to attain specific goals. A good leader is one who can do so day
after day, and year after year, in a wide assortment of circumstances to achieve the
objectives
Leadership is the ability to inspire a team to achieve a certain goal which does not
always have to do with bossiness it is something that needs to be applied I n our
day to day life and its not quality that some one inherit from birth all the time it is
mostly a character that is developed through out experience and the environment
one is exposed to

Leader
leader is somebody who can see how things can be carried forward and who can
potentially propel individuals to move toward that superior vision. leaders can work
toward making their vision a reality without compromising individuals need to .
leaders do not think being able to persuade individuals is enough leaders got to be
compassionate and connect with individuals to be fruitful. Every leaders don’t
necessarily have to come from the same foundation or take after the same way it all
depends on the experience and environment they are mostly exposed . Future
pioneers will actually be more differing, which brings a assortment of points of view.
As the late president and freedom fighter nelson Mandela said “A leader goes in
the front, leads the way and by his actions; people follow.

why managers should be leaders

One of the thin line s drawn in the management world is between leaders and
managers ,yes there are certain times where one accomplish the other task but its
rare since each have their own unique character and role in an organization
Reason why managers should be leaders
A good manager can control a group of individuals in organization to acomp0lish a
set of goal but this process will face difficulties when things deviate from the plan
and chances are most of the time it will and the major causes are the unpredictable
situation and behaviors resources specially human resource and during this times is
where leaders instead of managers are required to be at that place in-order to direct
people to the objective set in the beginning by motivating them and inspiring them
Difference
Counting Value vs Creating Value
In the context of value ,managers most of the time carry the counting of value
and not adding it, . Only managers count value; some even reduce value by
disabling those who add value.
Circles of Influence vs Circles of Power
Like managers have subordinates and leaders have followers, managers create
circles of power while leaders create circles of influence.
The quickest way to figure out which of the two you’re doing is to count the number
of people outside your reporting hierarchy who come to you for advice. The more
that do, the more likely it is that you are perceived to be a leader.

leadership effectiveness
The key reason for organizational success or failure while examining the factors
that lead to organizational success is an effective leadership general way to evaluate
the effectiveness of any leadership is to ask this questions Are you able to
coordinate and manage your global team to accomplish your collective goals in an
efficient and effective way?
While its not possible to put an exact definition for leadership effectiveness it can be
put as “The successful exercise of personal influence by an individual, which results
in accomplishing one or several goals as a result of the coordinated efforts of those
who are led.”( European leadership magazine}
some of the elements of effective leaderships are and not limited to accountable,
able to inspire change, and hold to values that are worthy of respect.
Some of the challenges posed to effective leadership described by doctor schmaltz
consists · Development of managerial effectiveness: Inspiration and motivation of
the workforce, Developing employees and the rise of “servant-leadership” and
Leading a team

early leadership theories

Like everything in history that is exposed to time, leadership is no different in the

context of going through the process of evolution and the early theories of
leadership were much different than the one we have in recent years
In the early years 20th century any one encompassing the leadership quality was
associated with physical, appearance, emotional stability and social class, sociability
and fluency on speech.
Leadership was an attribute that person would be thought to acquire the from birth
and inherit them from their ancestors in fact well known English scientist Francis
Galton conducted a study where he would scientifically research if leadership was
hereditary even further by studying twins for this matter
Trait theory
This theory states that leadership is not something we can develop through out our
life but rather through inheritance just like the researcher Francis believed .
Ancient civilization like Greek and Rome used to believe this ideology
This theory states that in order to be leader the leader needs to adopt to situations
and not all leaders are suited to lead every situation
Behavioral theories
Research projects in behavioral theory have attempted to identify relationships
between patterns of leadership behavior and performance of groups within
enterprises.the major setback for this leadership theory is that it fails to recognize
the situational factor affecting the leader it firmly believes that leader do not have to
change with changing factors.
 contingency theories of leadership

The failure of behavioral leadership and trait leadership to require into

consideration the circumstance where the method of impact is happening pushed
the rise of contingency theories, provoking analysts to turn their face from the early
ways of leadership styles .
Contingency theory strongly focuses on the ideology of the fact between the relation
between the leader and the employees that are following them.it also states that
styles of leaderships are to be suited with respectful to the behavior of the
followers, and the situation before deciding to use any particular leadership style the
task, the personality of the leader and the composition of the group that is meant to
be led etc…
It also states that the thought of the victory of a leader pivots on the particular
circumstance at hand
Among the many different type of contingency theories some of them are and not
limited to the Situational Leadership Theory,Fiedler’s Contingency Theory,the Path-
Goal Theory and the Decision-Making Theory

leadership styles
A leadership style refers to the methods leaders use to engage with, motivate, and
direct their workforce. It takes into account not just how they interact with their
teams but also how they approach things like overall strategy and stakeholder
management.

The main 10 leadership styles in business are

Coaching,Visionary,Servant,Autocratic,Laissez-
faire,Democratic,Pacesetter,Transformational, Transactional,Bureaucratic

Coaching
The coaching leadership style focuses on recognizing and development the strengths
of each team member and working with them to improve their collective outcomes.
This type of leader is best placed in direct management roles, working with teams
where individual members lack the skills or knowledge, they need to achieve their
goals or have become bored or dissatisfied over time.

Visionary
A visionary leader is a big-picture thinker. They’re all about the company’s mission,
which they use to unite and inspire their employees. They set big goals and
encourage teams to think freely about how to reach them. 

Servant
Servant leadership view themselves as a servant leader who consider their job to
be empowering their teams to succeed instead of viewing themselves as
commanders who all employees under them must obey,

Autocratic
Autocratic, or authoritarian, leadership is seen in leaders who seek no input from
their employees and make decisions entirely based on their own expertise and
judgment. The autocratic leadership style gets a lot of criticism, but it can be useful
in some situations. One of these is in battleground situations, such as if your
company is facing a crisis and needs fast decision-making. It can also be a good idea
to give the most skilled person autocratic control in highly technical companies and
projects so that they can make well-informed decisions quickly. 

Laissez-faire
Laissez-faire leadership is relaxed and hands-off. Instead of directly handing down
tasks to employees, laissez-faire leaders trust them to meet their goals. If an
autocratic leader is a professor who hands out specific assignments and readings to
their students, a laissez-faire leader is their colleague who tells them to explore the
topic on their own terms.

The laissez-faire leadership style is most effective in creative industries and

innovative environments.
 Democratic
Democratic leaders listen to their employees’ perspectives when making decisions
and, when a agreement cannot be reached, aim for a compromise that takes into
account all perspectives.

Pacesetter
A pacesetter leader is most focused on achieving goals. They want everything to be
done better and faster. They set high standards that they uphold themselves in their
own work, and they rely on goal-setting more than praise when it comes to
motivating their teams. The pacesetter leadership style is effective in temporary
projects and teams that are already highly motivated and competent and have clear
measures for success and growth. 

Transformational
Transformational leaders motivate their teams to innovate and create organizational
change in service of their company’s overall mission. Transformational leadership are
more effective in times of change. This could be during mergers and acquisitions,
restructuring, re-branding, diversifying a product line – any situation in which you
need a leader to run point on innovation.

Transactional
This type of leadership is more focused on efficiency and sustainability.Transactional
leaders run a give-and-take system in which employees are rewarded for good
performance and punished for bad – these leaders are not interested in making
waves.

Transactional leadership is all about efficiency and job performance, so it’s no

surprise that it’s been proven to improve job performance in settings such as banks.
However, the Transactional leadership model presumes that workers only need one
form of motivation, and that’s compensation. It doesn’t value factors like praise, a
good company culture, or goal-setting. Therefore, it works best when you’re working
with an already highly self-motivated team or with remote or part-time workers who
draw from other areas for a positive working culture, such as freelancers.
 Bureaucratic
Bureaucratic leadership is by the book. Although a bureaucratic leader may listen to
their employees’ input when making decisions, if it clashes with company policy, it’s
out. 

Bureaucratic leaders are most common in big, old, traditional institutions. There’s a
reason bureaucratic leadership is associated with big corporations, and that’s
because it’s hard to run such a big company effectively without a secure operating
framework.

contemporary views on leadership

Transactional
Transformational
Charismatic
Visionary leadership
Team player

leadership issues in the 21st century

There are many issues that can be raised in correlating with the twenty first century
Major leadership challenges for the 21st century can be gathered into three
categories:market power ,peoples issue and administration issue.
Issues in terms challenges
market power
An organization can be affected by a lots of factors and these factors can be divided
in to two major categories these are macro and micro factors macro being the ones
which the firm has little power to control and micro being the factors that are well
under the power reach of the organization to control .market force is within the
macro category which will test the organization major functions and leadership
qualities of the leaders of the enterprise .
The more globalization is happening the more the market force will be affected by
the needs and demand of may different type of customers around the world which
requires a well and highly effective leadership qualities from organization .
peoples issue
This refers to the interaction between the organization and the individuals working
their .this issue was not given much of a concern since it was handed to HR to deal
with it and not as major issue enough to affect leadership
When the work force continues to grow more diverse, those leader s whom are
able to accept individual differences in the organization and to look at them as a
source of creative energy and productivity will have access to a larger and more
talented work force an d eventually succeed in achieving the goal
leadership qualities of the leaders
The highly volatile market environment of the world due globalization and other
matters will require a leader who is more competent and adaptable enough to make
the right decision and lead the staff according to the situations at that time ,there
needs to b leader who is flexible with out compromising the goals and the beliefs of
the company
Issues in-terms of relationship within enterprise
Developing credibility and trust
With out having the trust of your employee and stuff no matter how much other
qualities you have under tool pockets no one will be willing to be led under your
guiding and among some of the ways one leader could establish trust and credibility
among his staff is by being honest.,educated ,competent,focused an actionable
person,accountable and loyal.
Ethical leadership
Leadership that is ethical is important for a variety of reasons, for customers,
employees, and the company as a whole. Leadership skills are crucial to help create a
positive ethical culture in a company. Leaders can help investors feel that the
organization is a good, trustworthy one. Customers are more likely to feel loyal when
they see leaders in place in an organization. Good press is likely to come when there
are ethical leaders in an organization. Partners and vendors will similarly feel they
can trust and work well with an organization when they see leadership that is ethical
displayed. 

Empowering employees
Empowering the employees will give the motivation and confidence that they are
capable o achieving the task they have been handed off to deliver .in the process of
empowering employees aside from allocating resources to the needs of their they
need to address the matters of employees voice ,training and giving or delegating
the appropriate amount of authority

communication & motivation in organization

communication
Any manager specially a leader very well knows that communication in an
organization is not only carried out by the means of verbal way but also by non
verbal manners and these non verbal communication can expressed in this major 8
distinct ways: body communication, facial communication, eye communication,
touch communication,para-language, spatial messages and territoriality
communication, artifactual communication), and temporal communication .these
days communication is seen as one of the most dominant and important activity in
the organization and it could be able to motivate employees.the reason why
communication is a very important aspect of any organization is because in\-order
to stay competitive in the recent market world we need to manage our resources
very well specially human resource which requires the effective communication skills
to address the matter of thinking skill, feeling , and emotion The success of a
company lies in how the company manages the human resources!the
communication in any organization should be allowed to flow from top to bottom as
well as bottom to top
Motivation
motivation is a process in organizing the choice among alternative forms of voluntary
activity, and it is controlled by individual Factors such effort value and the belief of
their effort will achieve something will strongly affect the motivation people will
have in workplace .aside from the verbal communication nonverbal communication
has an influence on motivation., nonverbal communication is an essential thing.
Nonverbal communication can greatly help employees in understanding the
information and establish a sense of comfort in working and be motivated .
A Highly motivated employee not only can bring about substantial increases in
productivity and job satisfaction but also substantial decreases in tardiness,
grievances, absenteeism, and so forth. The leader or manager motivation strategy
will determine how easily you can get down and do a task.with out motivation in
work place there would be no energy no force that would drive the work force to
achieve organizational goals of the company.