Leadership theories can be classified into personal approaches, behavioral approaches, situational approaches and modern approaches According to personal theories, leaders are born with specific traits that can make them lead naturally. These traits include the level of intelligence and knowledge, attractive appearance, honesty, common sense, initiative, a reliable socio-economic basis and self-confidence (Northouse, 2012). The second approach is behavioral approach. According to the behavioral approach to leadership, its effectiveness does not depend on the personal qualities of the leader, but, first of all, on his behavior and relations with his subordinates. Early theorists of behaviorism believed that the most effective in modern organizations will be democratic leaders who are attentive and sensitive to their subordinates. However, according to a group of authors who summarized the results of different studies, “there is no one best leadership style. However, none of the first two approaches has been able to identify a stable relationship between the personal qualities or behavior of the leader and his effectiveness. This does not mean that they are not important; These are integral elements of the success of any leader. However, more recent studies have shown that other, situational factors often play a decisive role in leadership effectiveness: the needs and characteristics of subordinates, the nature of the task, the requirements of the external environment and the amount of information available to the leader. This approach is based on the fact that different situations require not only different organizational structures, but also different ways of leadership, conditioned by the characteristics of a particular situation. Modern approaches include charismatic leadership, transformative leadership and supportive leadership (Brooks, 2008 p. 104)
Some management styles motivates, challenge and encourage employees to work hard while others restrict employees. Authoritarian style for example consider the leader as all-knowing and expert in everything and employees as deficient of certain skills (Handy, 2009 p.99). This style does not give employees chance to contribute in strategic decisions. The drawback of this style is that the removal of responsibility from subordinates; the knowledge and skills of subordinates are used to a small extent; reduces the initiative and creativity of employees; requires constant monitoring and specifics of tasks; does not facilitate the participation of subordinates in the performance of tasks. Unlike the authoritarian one, the democratic style has its roots in the “Y” theory of McGregor and assumes that the employee is ready to devote his knowledge and energy to the goals he considers his own and, under appropriate conditions, can responsibly and creatively solve the organization’s problems. In a democratic style, subordinates have the right to participate in decision-making. The head sets the goal of the action, as a result of which the employees are given the opportunity to act freely in choosing the ways of realizing these tasks. This creates favorable conditions for expressing one’s own initiative (Nelson and Quick, 2012 p. 109). The implementation of the democratic style of work increases motivation, and the use of certain pressure, creates a single positive social and psychological atmosphere and focuses on strengthening personal interest in the work and the opportunity to participate in the creation of development and implementation of the organization’s goals. Liberal (passive) management style is characterized by low activity, reluctance and inability of the manager to make any decisions, an attempt to avoid any innovations, shifting production functions and responsibilities to other managers and units. An effective management style should be oriented both to the characteristics of the external environment of the organization and to external indicators that determine the quality of its functioning. The most effective will be a management style that is able to adapt to changes in the external environment, subject to orientation to intra-organizational performance indicators. Changing the external and intra-organizational environment requires a situational approach in deciding, considering the personal characteristics of the leader and the management team (Hopkin, 2012).
Motivation for action is a dynamic process of the physiological and psychological plan that manages the behavior of a person, determining its direction, organization, activity and stability; man’s ability to work through his labor to satisfy his needs. Most theories are designed to address the needs and gaps in employees. There are theories based on a specific picture of the employee – these theories are based on a certain image of the worker, his needs and motives. These include such as “XY-theory” (Douglas McGregor), the theory of “Z” Ouchi. There are also substantial theories, which analyze the structure of the needs and motivations of the individual and their manifestation. This is the theory of the hierarchy of needs of A. Maslow, the theory of needs of K. Alderfer, the theory of the two factors of F. Herzberg. There are also theories that go beyond the individual and study the impact on motivation of various environmental factors. Generally, all these theories gives managers idea on what needs should be covered or addressed in order for employees to feel motivated. In order to manage the current situation, the immediate leader must flexibly and operatively change the mechanisms of motivation, adjusting to current conditions and tasks (Wilson, 2010).
Theories of work and interpersonal relations include exchange theory (J. Homans, P. Blau); the theory of symbolic interactionism (J. Mead, G. Bloomer); theory of impression management (E. Hoffman); psychoanalytic theory (3. Freud), etc. The exchange theory is based on the fact that people interact, exchanging information with each other, with some kind of benefits. If a person receives the necessary benefits from interaction, then contact continues (Nelson and Quick, 2012 p. 97). Theory of symbolic interactionism states that people observe, comprehend each other’s intentions, put themselves in the place of another person, adapt their behavior to expectation. Theory of attraction postulates that people interact with each other if they experience mutual sympathy, location, attraction.
The organization of innovation activity in industrial enterprises presupposes the constant integration with the scientific sphere, which is the most important condition for the formation of a national innovation policy. Particular importance in this issue is the creation of an atmosphere at enterprises that stimulates the search and development of innovations. The problem of modern management is directly linked with the problem of developing innovative production potential and ensuring the growth of the creative potential of workers in industrial enterprises. The success of the innovation process largely depends on the extent to which its immediate participants – scientists, engineers, designers, employees – are interested in the rapid and cost-effective implementation of research and development results in production (Mullins and Christy, 2013 p.67). The labor motivation of employees and the stimulation of their highly productive work or the innovative development of personnel is of decisive importance. This term is understood as a continuous process of adapting the personnel potential of the enterprise to the new conditions of production functioning, to its new current and future tasks. There should be involvement of employees in decision-making processes and their implementation; improvement of communications in the conditions of group decision-making; use of complex motivational systems in the implementation of innovations; application of flexible production and management structures (Buchanan and Huczynski, 2010)
Learning is important because of many reasons. Firstly, the introduction of new technology, technology, the production of modern goods, the growth of communication opportunities creates the conditions for the liquidation or modification of certain types of work. In this regard, the necessary qualifications cannot be guaranteed by learning (Robins and Judge, 2012 p. 211). In addition, for the firm, it is more efficient and economical to increase the impact of already existing employees on the basis of their continuous training than attracting new employees.
Team work is associated with many benefits. Teamwork reduces stress. Studies have shown that in enterprises that use teamwork, employees are significantly less exposed to stressful conditions. Stress itself helps to develop business and this is described in detail in the article, but it is important to control it (Xenikou and Furnham, 2012 p. 37). Working in a team reduces the risk. When employees work as a team, the likelihood that the error or problem will go unnoticed will be greatly reduced. Teamwork contributes to the emergence of better ideas. When every employee feels involved in the process – the end result of any project is usually better (Alvesson, 2012 p. 31).
In today’s difficult economic conditions of managing the gain competition, there is a need to respond in a timely manner to changes in the environment. Enterprises need to meet the requirements of consumers, successfully compete in the market, adapt to changes in the external environment. Changing the requirements of customers for the quality of goods and services, the growing diversity of new products while reducing the time of its introduction to the market, require an adequate response from enterprises (Senior and Swailes, 2010 p. 17).
Organizational culture tools can be used to improve socio-psychological climate in the team, increasing motivation for work, training, staff development, employee satisfaction with work, and by changing these indicators, to increase the productivity of the individual worker, division, organization as a whole. At the same time, by instilling certain norms and values, one can influence the organizational behavior of employees, forming in them an awareness of the importance of their work, attitudes to the rational use of working time, readiness to perform their labor functions qualitatively and make proposals for improving their activities, workplace, etc (Schein, 2010 p. 97). This, in turn, leads to a reduction in costs and cost savings of the organization. Within the framework of the enterprise, the following indicators affect it: working conditions, the organization of the workplace, the system of material and non-material incentives for work, the existing relationships with colleagues and management, the mode of work and leisure, an understanding of the importance of its activities, wages.
There are a number of decision-making approaches. The first one is a centralized approach in which most decisions are made at the management level. The other one is decentralized. This entails transfer of responsibility for decision making to a lower management level. This approach protects chief managers from the risk of “drowning” in the small details of daily operations. On the other hand, behavioral approach to the treatment of decision-making (G. Simon) is based on the fact that the real goals facing a person are too complicated to be described with the help of not only quantitative but also qualitative methods (Robins and Judge, 2012 p. 113). The democratic approach is rarely used in organizations, as it leads to the fact that the voters on each issue are divided into “winners” and “losers” A compromise approach, of course, is used as a form of a group approach. The focus is on finding out the points of view of a larger number of people related to this decision, and then a common opinion is formed from them. Voting is often used here as a method of finding consensus (King and Lawley 2013 p.79).
References:
Alvesson, M., (2012) Understanding Organisational Culture 2nd Edition, Sage Publications Ltd. Pp. 27-39
Brooks, I., (2008) Organisational Behaviour: Individuals, Groups and Organisation 4th Edition, Financial Times/ Prentice Hall, pp 102-105.
Buchanan, D and Huczynski, A., (2010) Organizational behaviour 7th Edition, Financial Times/ Prentice Hall
Handy, C., (2009) Gods of Management: The Changing Work of Organisations, Souvenir Press Ltd, pp 96-101.
Hopkin, P., (2012) Fundamentals of Risk Management: Understanding, Evaluating and Implementing Effective Risk Management 2nd Edition, Kogan Page
King, D. and Lawley, S., (2013) Organizational Behaviour, OUP Oxford, pp 77-81.
Mullins, L. and Christy, G., (2013) Management and Organisational Behaviour 10th Edition, FT Publishing International, pp. 65-69.
Nelson, D. L. and Quick, J. C., (2012) ORGB-3 3rd Edition. South-Western College Publishing pp. 107-110
Nelson, D. L. and Quick, J. C., (2012) Principles of Organizational Behavior: Realities & Challenges 8th Edition, South-Western College Publishing, pp 95-99.
Northouse, P. G., (2012) Leadership: Theory and Practice 6th Edition, Sage Publications Inc.
Robins, S. and Judge, T., (2012) Essentials of Organizational Behaviour 11th Edition, Pearson, pp. 209-217
Schein, E., (2010) Organizational Culture and Leadership 4th Edition, Jossey Bass, pp. 91-101.
Senior, B. and Swailes, S., (2010) Organizational Change 4th Edition, Financial Times/ Prentice Hall. Pp. 17-49
Wilson, F., (2010) Organizational Behaviour and Work: a critical introduction 3rd Edition, OUP Oxford
Xenikou, A. and Furnham, A., (2012) Group Dynamics and Organizational Culture: Effective Work Groups and Organizations, Palgrave Macmillan, pp. 31-43.
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