Leadership Theories

Leadership Theories

• A leader is thought to be the person who knows best what to do and is seen by the group as the most suitable leader in a particular situation.
• Behavioral Theory assumes that leadership effectiveness depends on what the leader does, and that leadership behavior is a product of the leader and followers.
• Qualities of a leader include energy, perseverance, education, intelligence, personality, creativity, innovation, optimism, balance, objectivity, and enthusiasm.

Decision Making

• Decision making is the selection of a course of action from among alternatives.
• Categories of business problems include:
  • Inadequacy of resources (e.g. raw materials, skilled manpower, capital)
  • Organizational problems (e.g. poor delegation of duties, undefined rules)
  • Environmental problems (e.g. poor business locations, poor or unsafe working conditions)

Identifying a Problem

• Ways to identify a problem in a business include:
  • Past experience
  • Conducting a survey to find out if activities are carried out according to plan
  • Hiring consultancy services
  • Employing work study methods

Methods of Decision Making

• Rule of Thumb: making decisions based on existing established procedures
• Committee Approach/Team Work: using a selected number of people from the main group to make a decision
• Critical Path Analysis: making decisions stage by stage until the final decision is reached
• Solution Evaluation Form: identifying reasons for and against each potential solution

Solution Evaluation Form

• Steps to use the solution evaluation form:
  • Write a brief description of the problem at the top of the form
  • Write a brief description of the proposed solution
  • List important factors that favor implementing the proposed solution (Reasons For)
  • List important factors against implementing the proposed solution (Reasons Against)
  • Rate each factor by its importance to you (1-5, where 1 is slightly important and 5 is extremely important)
  • Add the ratings in each column to determine the potential for a particular solution

Group Participation

• Advantages of involving the members of a workgroup in a decision include:
  • Brainstorming
  • Problem solving chart
  • Solution evaluation form

Decision Making Process

• Steps of the decision making process:
  • Identify the major problem
  • Determine major causes of the problem
  • Determine potential solutions
  • Evaluate potential solutions
  • Select the best solution
  • Implement the solution
  • Verify the solution

Problem Solving Chart

• A problem solving chart can help analyze alternative solutions in terms of potential advantages, disadvantages, and consequences
• The chart can help identify potential advantages and disadvantages of each solution and determine the potential net result of implementing a particular solution

Explore different leadership theories, including the characteristics of a leader and factors that influence leadership effectiveness. Learn about the role of the leader and followers in a particular situation.