Organizational Behavior For Leadership Style And Theory – Case Study

Effective Leadership Behavior Theory and Practice

Discuss about the case study Organizational Behavior for Leadership Style and Theory.

The success of a business organization is highly dependent on the performance of employees. Employees are able to perform well only when they get immense support and co-operation from the organizational leaders and managers. This particular study has primarily focused to deal with the importance of implementing appropriate leadership style and theory for running an organization successfully. Numerous eminent scholars have defined the overarching term leadership in their books. As per the point of view of Webster Dictionary, “leadership has been considered as the power or ability to lead other people”. Some conspicuous critics have defined leadership as the spirit that motivates the employees or an individual team for achieving the business goal. In a word, leadership is the strength or the power that influences a group of people to reach the business goal. This particular study has provided an in-depth overview about the importance of maintaining appropriate managerial style as well as organizational culture at the workplace.   

Leadership theories

As per the point of view of (Aarons, Ehrhart, Farahnak, and Hurlburt 2015), every organization has to follow a specific leadership theory for leading a business organization towards the business goal. Leadership theories are constituted with several types that include the follows:

Great man leadership theory:

As per the concept of great man leadership theory, leaders are possessed with the inherent capacity. Leadership quality can never be made by providing effective training process. Thomas Carlyle the eminent Scottish stalwart has established this theory in the year 1840. The professional historians popularly knew the great man theory. According to (Aarons, Ehrhart, Farahnak, and Hurlburt 2013.), Great man theory was primarily used at the time of middle era when the society was fervently dominated by male power. The strengths and weaknesses of this particular theory are as follows:

Strengths	Weaknesses
·         Easy to appeal	·         This particular theory is primarily beneficial for the male employees. As per the concept of Thomas Carlyle, male employees deserve to become a leader of an organization rather than a female employee.
·         Employees already creates an impression on the leaders	·         Female employees having enough proficiency and skill to lead a team properly do not get equal chance to hold the position of a leader
·         Leaders already possess a personality or quality for leading their team before getting the leadership training.	·         Great man theory believes that leadership is the inheriting quality. Therefore, leaders need not take any professional training to lead their team.

Trait leadership theory is the extension of Great man theory. Gordon Allport, the pioneer of trait theory has pointed out that leaders have been chosen based on the particular quality, efficiency and trait of an individual. Allport as well believes that personality cannot be built, rather it is rendered inherently. The strengths and weakness of trait theories are as follows:

Strengths	Weaknesses
·         Leaders have been selected as per the efficiency and skill of an individual on how they are leading a team. As a result, employees get a proper guidance in reaching a business target.	·         Trait leadership is primarily concerned on the special characteristics of the leaders. It does not care whether employees get benefits and facilities due to this particular leadership theory or not
·  Trait leadership primarily focuses on the performance of the leaders. Consequently, leaders’ performance reflects on the performance of employees.	·         Without taking an effective professional training, leaders would not be able to accustom themselves with the changing technology or organizational policy. Therefore, only in-born proficiency is not enough to become a skillful leader of an organization.

Contingency theory has set a predominant place for most of the business organizations now a day. Contingency theory believes that any specific leadership theory is not sufficient for leading an organization properly. The organizational managers should change their leadership style and policy as per situation and demands of customers. Therefore, leaders should have the competency to adjust themselves with the changing environment and situation. The strength and weakness of contingency theory are as follows:

Strength	Weakness
·         Leaders have the ability to adjust themselves as per the changing strategy and policy of organization.	·         The flow of rhythm of an organization may have a chance to be hampered due to the changing organizational strategy and policy.
·         The employees become energetic to work under different kinds of leadership styles.	·         Employees may lose their interest to provide best performance under different kinds of leadership styles.

Great man theory

This is a popular leadership theory which was first introduced as “Life Cycle Theory of Leadership”. It was terminated as situational theory in the year 1970. The fundamental principle in this theory is that, in an organization, there is no single style of leadership which can be considered as the best. The effective leadership is directly connected to the nature of the tasks and the individual or the group involved. The best leader or the most successful leader is the one who adapt their style of leadership as per the composition or maturity of the group members. This theory considers two important parameters such as leadership style and the maturity level of the group or the individual.

The strengths and weakness of the situational leadership theory are discussed below

STRENGTHS	WEAKNESS
High level of flexibility as the leaders can chose the leadership style that is most suitable for the firm	There may be high degree of confusion and there may be an atmosphere of uncertainty
The leaders establish rapport and fosters the best performance in the employees	It can be perceived as manipulative as it may seem that the leaders are biased against some employees
There is high degree of trust among the team members in the organization	The leader faces significant pressures in the analysis of the situation and make the right decisions
There is high degree of insights and the leaders can understand the requirements of the followers	There can be wrong identification of the employee maturity which forms the basis for decision making

The Path Goal theory states that an individual can help achieve the goals of team in three ways- make them identify their goals and help them achieve it, removing the obstacles for the improvement of the performance and rewarding the deserving team members. These goals can be achieved by four types of paths namely supportive leadership, directive leadership, achievement oriented leadership and participative leadership. The supportive leadership deals with the identification of the best interests of the team members and there is great deal of focus on the relationships. The directive leadership concerns with the clear communication of the goals as well as the expectations and the assignment of tasks. The achievement oriented leadership concerns with the setting up of challenging goals for the team. The leaders have confidence on the ability, skills and knowledge of his team members. The participative leadership focuses on the overall participation of the team members. The leaders take decision after a discussion with the team members and considering their viewpoints.

The strengths and weakness of path goal theory of leadership are discussed below-

STRENGTHS	WEAKNESS
Clarifies the scope, task and the process	Extremely challenging as it requires the analysis of the various components of the real organizational situation
Provides clarity of the roles of the subordinates	Focus on may parameters that makes it difficult
Provides effective guidance and mentoring	It relies heavily on the expectancy theory
Removal of any potential barriers in the path of task completion	The organizational situations are complex and difficult to apprehend at certain times
Aims to give psychological support to the employees	It allocates great degree of responsibilities on the leaders and minimal emphasis on the team mates
Emphasizes on giving rewards to the employees for improving the work environment	This type of leadership may inhibit the growth of the employees
Emphasized on the importance of the motivational factors	This theory placed least emphasis on the best interests of the subordinates

Managerial style is nothing but the strategic policy of managing the employees in order to get the best services from them. Different organizations like to follow different kinds of managerial styles and policies. Various kinds of managerial style include:

Autocratic managerial style:

With the help of this particular leadership style, employees are not free to express their own point of view regarding the business goal. Managers tend to impose their decision on the employees and they are force to agree the decision of managers.

Effectiveness:

Autocratic managerial style has a greater effect on the employees’ performance. Employees generally do not show their interest to perform well as their point of views are ignored by the organization.

Trait leadership theory

In democratic managerial style, employees get enough opportunities to express their opinion regarding the success of business. Here, both the managers and the employees make collective decision for making organizational strategy and policy.

Effectiveness:

Employees become courageous to perform well as the organizational managers treat them with priority.

This specific managerial style believes that employees should never be force to follow a specific leadership style at the workplace. Managers like to change leadership style as per the growth of business process.

Effectiveness:

This particular leadership style is possessed with both its positive as well as negative impact. Leaders get the scope to change their style with the business strategy and policy. This tactics may affect the employee performance.

In transformational leadership style, managers participate directly with the team members in order to receive a constant feedback from them about their performance (Fatima, Irfan, Salah-Ud-Din and Khan2014). Employees as well get motivated after receiving an immense support from the managers.

Effectiveness:

Transformational managerial style has a greater impact on the performance of employees. Employees get sufficient co-operation from the managers in transformational leadership style. Therefore, employees get motivation from the managers to reach the business target.

Among the motivational theories, Hygiene factor theory of Hertzberg has been considered as one of the most prominent. Herzberg developed this theory that proposed two factors- one that satisfied the employees and the other that created dissatisfaction among the employees. The job satisfaction factor consisted of five parameters such as achievement, work, recognition, advancement and responsibility. These factors were termed as motivators as they inspired the employees. The presence of these parameters caused high motivation levels in the employees. The job dissatisfaction factor consisted of parameters such as compensation, supervision, interpersonal relationships, working environment and the management of the company. These parameters were termed as “hygiene factors” and the presence of these factors caused more employee dissatisfaction.

As per the concept of this particular theory, organizations need to fulfill some of the major requirements of the employees to get proper services from them (Hadfield and Dörnyei 2013). These requirements include providing sufficient benefits and facilities in service process, good remuneration, organizing reward ceremony for appreciating the efforts of employees are important. Employees like to provide their best endeavor for the organization only when they would get necessary benefits from the organization as well.

On the other hand, employee motivation is nothing but the energetic as well as commitment level that an individual employee likes to provide for the success of organization (Kay and Heckhausen 2015). Employee motivation level is highly dependent on the motivational theory that a particular organization likes s to follow at the workplace. Both the two concepts are inseparably related to each other. However, the relations in between the motivational theory and employee relation are as follows:

Motivational theory	Employee motivation
Important motivational theories such as need theory, hygiene factor theory are the concept based on which organizations like to encourage the employees for providing good services to the customers.	Employee motivation is the effect of implementing motivational theory at the workplace.
The success of an organization depends on the impact of implementing appropriate motivational theory.	Employee retention is highly dependent on the effect of employee motivation.

Contingency leadership theory

The content theories of motivation emphasize on the fact that there is a change of the human needs over regular intervals of time. They are the earliest theories of motivation which are also known as need theories. They try to determine the needs of the people and connect motivation for fulfilling these needs. The important content theories are described below-

Maslow’s Hierarchy of needs

This is the most popular motivation theory in which there is the presence of hierarchy of needs and is represented by five levels. This theory believes that the employees need to fulfill certain needs in their life time. The needs progress from lower levels and proceed subsequently to the higher levels. The fulfillment of these needs would ensure higher motivation levels.

Fig: Maslow’s Hierarchy of needs

Source: Created by the author

The basic needs consist of the physiological needs and the safety needs. The physiological needs consist of the basic necessities of life such as food, clothing and shelter. A person would not be able to survive without these needs. The safety needs consists of the need for security in the individual’s life. The psychological needs consist of the two needs such as belongings and the esteem needs. The individuals wish to have intimate relationships and amicable relations with the family members as well as friends. Once this need is fulfilled, the individual tries to seek the esteem needs- feeling of achievement and prestige. He seeks to be recognized in the society. After the successful completion of this level, the individual moves up to an ultimate level of self actualization. This is the highest possible level and includes the achievement of an individual’s full potential. The employees would be highly motivated if they reach this level of self actualization.

This theory consists of three hierarchical levels, which states that the employees respond to three basic types of needs, namely Existence needs, Growth needs and Relatedness needs. This theory presents a more realistic approach than the Maslow’s hierarchy of needs. This is because this theory identifies that there can changes in the patterns of the fulfillment of the needs. A need which is fulfilled now may not remain fulfilled in the future. This is applicable for the employees too working in a professional environment. They need to be aware of their purpose of existence and career prospects in the organization. They should have a feeling of attachment with the organization.

Situational Leadership Theory

This theory was formulated keeping in mind the various dimensions of the workplace. This theory states that every manager made assumptions regarding the employees and adopted the relevant management approach which is based on their own assumptions. There were two main categories of management approach adopted by the managers namely Theory X and Theory Y. The former is the dominant category while the latter is the alternate assumption. The Theory X laid down the following principles-

• Most of the employees need to be directed, controlled and be reminded of the punishment
• Normal human being possess a tendency of avoiding work
• Need to put additional effort for driving the employees to achieve organizational objectives
• Employees often possess less ambition and do not prefer to take responsibility

Theory Y is said to be beneficial both for the organization as well as for the employees. It has the following assumptions-

• The capabilities of the employees are not utilized fully
• The threats and external control are not the only modes that can be adopted by the managers
• The commitment of employees is directly proportional to the performance rewards.

The organizations must adopt the Theory X for enhancing the employee morale and increasing their work performances.

The “process theories of motivation” explains the behaviour of the employees and showcases how it is energized, sustained and directed in an organization. There are four major types of process theories as described below-

This theory states that the behaviour of the employees is influenced by the consequences. The behaviour modification is used for the purpose of describing the reinforcement of an individual. This theory is based on several principles of positive reinforcement, negative reinforcement, punishment and extinction. The positive reinforcement increases the intensity of the response and encourages the repetition of the behaviour. The negative reinforcement concerns with the taking away of the element that enhances the frequency of the response. The punishment principle deals with the undesirable outcome of a particular behaviour. The extinction principle deals with the fact that the decline in the response rate is due to the ignoring behaviour.

This is one of the most important theories of employee motivation. The motivation is considered to be a part of the decision making process which evaluates effort for the outcomes. It underlines the involvement of cognitive process and the presence of employee choice. The evaluation process is segregated into three parts namely-

• The employees believe that if they put extra efforts in the workplace, they can expect to give optimum output at the concerned task.
• The employees are in dubious minds that whether their work would help them achieve the desired outcomes of the job
• Can the employees expect the outcome of the work to be worthwhile?

This is the most common theory widely used in deciding the compensation structure of the employees. It decides the interconnection of the employees’ performance with the anticipated employee’s rewards. They would be motivated if their hard work is recognized and rewarded in the organization.

There is a tendency of the employees to compare their own efforts and the subsequent remuneration with those of their peers or colleagues who are working in the similar work environment. The theory states that the employees would be motivated if they receive equal treatment at work. The organizations should make an active effort to treat their employees equally and fairly. This act would be the driving force behind the employees and would definitely enhance their motivation levels. The fair treatment of one employee can motivate another employee and the workforce put greater trust on the management.

Path-Goal theory of Leadership

The setting up of goals is equally important for the organization as well as the employees working in the organization. The specific goals can provide a path to the employees, which usually create interest in the job. This also allows the supervisors to attain challenging and specific goals so that it can create a sense of motivation in the employees. It also fosters better performance of the employees and thus increasing the motivation level of the employees. There is also a direct relationship with the effort and the goals. There is an increase in the effort once there is an increase in difficulty of the task. The managers should focus on determining the vision of the company as well as goals of the project and communicate the same to employees.

Maintaining work relationship and effective interaction in between the employers and employee is truly important for rendering the success of business. Effective work relationship within the organization enhances the performance of employees. It indirectly helps to satisfy the needs and demands of the customers as well (Hepworth, Rooney, Rooney and Strom-Gottfried 2016).

This theory focuses on the social cognition or the understanding of the coworkers regarding the physical behaviours of each other in an organization. This theory focuses on the professional working relationships among the employees. The interaction theory comprises of two approaches known as “theory theory” and “simulation theory”. The primary approach of these theories is the analysis of the peers with the help of mentalizing and mindreading. The interactive theory strives to understand the attitudes of the coworkers by the interactive relations of the employees. The organization must take active initiatives to foster communication among the team members. This is important as the employees need to work in a team for the achievement of the organizational objectives. The team would function smoothly only if the team mates interact with each other on a regular basis.

The topics that are covered in the presentation:

The Structure of the Organization

The Impact of Culture and Structure on the Effectiveness of the Organization

Information booklet

Creativity and innovation is very important in the present era because without creativity and innovation the companies would not survive in the competitive market. Therefore, today creativity and innovation not only helps in the growth and the development of the organization but at the same time, it increases the sustainability of the organization (Anderson, PotoÄÂnik and Zhou 2014).

Innovation is that spark that helps a company to not only sustain but also at the same time, provide it with the fame. Innovation is not equivalent to invention; rather it is defined as a style, which is related to the corporate behavior. The particular style helps the organization to be comfortable with risks and new ideas. Most of the time, innovation is based on the technological changes that are taking place in the society. The scholars and the critics are of the opinion that when a technological change is taking place in the society, the organization should come up with innovative products. If the organization fails to come up with innovative product then it will be difficult for the organization to sustain in the market (Hogan and Coote 2014).

Creativity can be defined as something that help people to go beyond the current boundaries that are there. According to many scholars and researchers if people can see and act with new relationship and at the same time, could bring them to life, then it can be referred t as creativity.

According to many scholars and critics, the organization should set clear intention or rather business perspective, to facilitate creativity. The critics believe that creativity is an organic process that includes both emotional energy and passion. Therefore, it is important for the business organization, to set their business goals.

Organizational learning is a concept that is not at all complicated in nature. The current or the present organizational learning practices that are there are different from the older organizational learning techniques. The older organizational learning techniques that are there are harsh and brutal (Arends 2014). In the present global market, such techniques are not used by most of the organizations.

The present day organizations give more importance to the human resources or to the staffs and the employees working for the organization. The main aim of the organization is to retain the employees, and at the same time, provide them with effective knowledge, so that they could contribute to the growth and the development of the employees (Crona and Parker 2012). The scholars and the critics are of the opinion that the learning programs actually, motivates the employees and they are encouraged to work for the organization.

The culture of the organization encourages the learning that takes place within the organization. The structure of the organization too plays a detrimental role, in case of incorporating, organizational learning (Argote 2012). Organizational learning could be of various forms; four major types of learning are the following, formal, non-formal, incidental and informal.

Figure 1: Things that should be given importance during organizational learning

(Source : Imrie, Cox, Imrie, Miller and Miller2014.)

Organization could achieve incredible and outstanding results through effective teamwork. Today almost everyone is a member of a team, and only if a person is a member of a team, he/she has the chances to grow and develop his/her career. Therefore, in the path of career development it is important that each person gather the experience of teamwork. In an organization if a team fails to perform then it will give rise lots of problems (Daly 2014). Some of them are, disruption, failing to deliver the work in time and at the same time, the company will suffer from the problem of strategic failure. Therefore, teamwork plays an important in the organization and in the life of the individual at the same time.

The effective team is something that depends largely on effective team building. Therefore, without effective team building it will be impossible to work as an effective team. There are different stages of team development, and during effective team building, the team should not try to skip these development stages (Deneckere, Euwema, Lodewijckx, Panella, Sermeus. and Vanhaecht 2012). If during team building, one of the development stages are missed out then it will create problem in forming the solid foundation of a team. The development paths that are mainly followed by most of the teams are, forming, storming, norming and performing.

Figure 2: The four stages of team development followed by most of the organization

(Source : West 2012)

Figure 3: Change Management within Organization

(Source : Cummings and Worley 2014)

Organizational change could be referred to as a process, where, the state of the existing organization goes through a change. The state of the existing organization goes through changes, which increases the effectiveness of the organization. The organizations if they want to be in touch with the market as well as with the existing companies in the organization, then the organization should adopt the change management strategy. The change that will take place in the organization will help the organization to use resources, in order to increase the value of the organization. The increase in the value of the organization will help in improving the return that is provided by the organizations to the stakeholders (Burke 2013). Most of the companies in the present era go for change, to increase their sustainability in the competitive market. The companies could go through many kinds of changes and some of them are:

• The Structural Changes: The structure of the organization could go through a change; the structural change could affect workings of the various departments as well.
• The Technological Changes: The organization could go through the technological changes at the same time. It is this technological change within the organization that has bought or rather introduces automation technology, which decreased the use of human efforts to complete a particular piece of work.

Along with these changes, the organization could also go through the cultural change as well, if it is required to increase the productivity of the organization. The important problem that the organization faces during change management is the resistance from the work force. Most of the people are resistant towards the uncertainty that would arise due to the changes. Therefore, during the implementation of the change management strategy it is important that organization is lead by a good and an effective leader.

Company Profile

Hilti is a company that helps the construction and the energy sector. The particular company develops and at the same time, they manufacture those systems that are supported by the leading age technology. Therefore, they could add an outstanding value to the construction and the energy sectors. Innovation and creativity are the important component of this particular organization. It is there in almost 120 countries, it facilitates the production as well as the Research and the Development Centers (hilti.com 2016). The particular organization is responsible for forming various international technological partnerships. Two brothers Eugen and Martin Hilti founded the company. The company’s headquarter is in Schaan, Liechtenstein.

Organizational Structure

Hilti operates in almost 120 countries and the employees of the organization works directly on the behalf of the customers. Therefore, the organizational structure that is maintained in this organization is the geographical divisional organizational structure. The company also follows the divisional organizational structure to meet the demand of the customers, or the stakeholders.

Organizational Culture

The culture of the organization allows the customer to gain success in the future. The culture also encourages teamwork within the organization. The culture fosters openness, respect, fun and cooperation (hilti.com 2016).

Hilti is a corporation that follows the geographical divisional structure therefore; it helps the organization to increase the productivity and the efficiency of the company. The geographical division of the company allows the managers of the company to adopt with the local conditions.

The organizational culture as well as the ethical values, encourages, teamwork and therefore, the organization could easily avoid the clashes that may arise. The organizational culture allows the organization to be both innovative and creative at the same time.

The board of directors comprises of Dr. Pius Baschera, Bo Riskberg and others. There are four terms that identify the process of value delivery to the customers such as teamwork, courage, team work and commitment. The structure of the company was formulated in such a way that there is an identification of the important aspects of the organizational success (hilti.com 2016). The Hilti also strives to deliver value added solutions to its customers. Their business models promote the involvement of the employees, customers, partners and the suppliers in order to achieve the goals of the company. The organizational chart of Hilti can be compared to a globe, due to its worldwide presence (hilti.com 2016). The top management is the focal point of the globe and provides strategic guidance to the organization. The other units of the organization are interconnected and have flexible borders (hilti.com 2016). The market organizations are segregated according to the regions and grouped together. There is mutual support between the various departments of the organization. The structure of the company has many advantages for the company which leads to the achievement of the organizational goals.

The mission statement of Hilti is to create customers who are enthusiastic and thereby creating a better future. The company strives to create success for the customers by the identification of their needs. The company strives to provide value added and innovative solutions. Hilti strives to build a lucrative future for the company (hilti.com 2016). The company fosters a work environment in which the team members are appreciated for their hard work. It aims to maintain win-win relationships with the concerned suppliers and the partners (hilti.com 2016). It also acknowledges their responsibility towards the matters of the environment and the society (hilti.com 2016). This creates goodwill of the organization in the public. Hilti believes in the creation of values such as integrity, commitment, tolerance, trust and respect for the team members (hilti.com 2016). This is highly beneficial for the organization as these values would result in an enriching work environment (hilti.com 2016). This would attract more talented professionals in the organization. The culture of the organization imbibes integrity and commitment which increase the productivity of the organization (hilti.com 2016). The employees treat each employee equally which increases the employee satisfaction rates. The employees are committed to deliver their best performance (hilti.com 2016). The employees strive to work in a team which fosters open communication among the team members. The culture of the organization has a positive impact on the functioning of the organization.

Different approaches to organizational decision making

The leaders of the organizations have to play an important role while making a decision. Therefore, the issue related to choosing a decision-making approach is important for the growth and the development of the organization (Hwangand Yoon 2012). Managers of the organizations are held responsible for playing this key role. They choose the decision-making approach and accordingly effective decisions for the organizations are made. Therefore, they choose from various kinds of approaches that are there.

• The Rational Approach: The managers who are generally objective and have a complete information and knowledge about the organization go for this particular approach. The particular approach includes various steps and the organizations have to go through these steps, so it can said to be a systematic process. Most of the time the economically based organizations go for these kinds of decision making approaches.
• The Behavioral Approach: In this kind of approaches, bounded rationality is given more importance than perfect rationality that is there. Therefore, the decisions that are taken are neither exhaustive nor they are rational. Therefore, the decisions that are made are not ideal.
• The Practical Approach: The particular approach helps in taking the most realistic decisions within the institution. The reason behind this is very simple; the particular approach is a combination of both the rational and the behavioral approach. According to this particular approach, the managers or the leaders should go beyond the rules and should generate as many alternatives as possible.
• The Personal Approach: The particular decision-making approach uses the “Conflict Model” that is based on a research, which gives importance to individual decision-making process and at the same time, to social psychology. The particular approach deals with the personal conflicts.

Different approaches to risk and uncertainty in decision-making

Risk and uncertainities are two very different things that do not have any relationship with each other. Uncertainty could lead to several possible outcomes, that unknown. Risk is one of those unknown possible outcome that has a relationship with the possibility of the loss.

Therefore, it is important to manage the risks and the managers play an important role in managing the risk. The manager should be able to identify the risk and at the same time, should have information as well as knowledge about the problem.

The managers or the leaders of the organization should take effective measures in improving the performance of the organization. Reducing the risk factor is a way to improve the performance of the organization. There are several ways to reduce the risk; some of them are the following:

• The managers of the organization should try to identify the type of risks and accordingly should take effective steps to come to a solution. The several types or the kinds of risks that are there in the organization include the, strategic, financial, legal and the operational risks. The manager of the organization should identify other risks like force, natural disasters and hostilities that may arise in an organization.
• After the management or the managers of the organization have identified the risk, they should take effective measures to quantify those risks at the same time. Therefore, to put it in a simple way, the management will invest certain amount of money so that they could prevent the possible risky outcomes that may take place in an organization.
• Finally, the management should take measures to manage the risks that may arise within the organization. The decision-making approaches that will be adopted by the organization often play an important role in this particular stage. After the risks have been identified and quantified, the management should decide whether the risky outcomes could at all be tolerated or not. For example, many financial risks either could be used or could be absorbed with the use of the hedge. The legal risks, whereas, be mitigated with the use of the contracts and the legal language.

Effectiveness of organizational decision in a specific organization

Leaders or the managers of the organizations are the important part of an organization. They come up with those decisions that are favorable for the growth and the development of the organization. The leaders ensure that the goals and the objectives that are being set by the organization are easily met through the effective decisions that are taken by them. Sometimes the leaders or the managers of the organization could not take effective decisions and this lead to the failures . The result of the failure is severe it could even lead to shutdown of the organization. The decisions that are being taken by the managers of the organization could lead to affect the health and the well-being of the people. The decisions that are being taken by the organization also affect the employees working in the organization, but also at the same time, it affects the customers of the organization. The decision taken by the leaders could affect the whole community as a whole.

It is important to perform a decision audit in the organizations. They should perform SWOT analysis for the analysis of the strengths, weakness, opportunities and threats of the organization. The organizations should analyze their decisions regarding the key performance areas. The first step includes the identification of the crucial decisions made by the organization and reviews the strategies taken for creating maximum shareholder’s value. This is an attempt to improve the existing strategy of the organization and identify any gaps in the strategy. In case of bigger differences, the organizations need to remove the existing obstacles so that the organizational objectives can be achieved. The necessary changes should be made which is in favor of the key stakeholders.

Hilti engages in effective organizational decision making process. The organization tries to assess the strengths of their decision making process and rate their own decision making abilities. They try to analyze the organizational decision making process in terms of several parameters such as quality of decision, speed, output, relevance and the effort of the management team. It also takes active initiative in the identification of the obstacles in the decision making process. They focus on the key decisions taken by the organization such as big strategic choices, big acquisitions or investment in a particular sector. They also pay attention to the quality of the operational decisions It is also important to identify the value involved in each decision in the major business processes of the company. Hilti engages in employee surveys that give an overall idea regarding the efficient decision making process in the organization. The organization believes that their employees can give the best feedback regarding the effectiveness of the decision making process. Hilti should organize frequent meetings and discussion forums which would analyze the effectiveness of the decision making initiatives of the company. It should also analyze the decision competencies and the behaviours of the key decision making stakeholders.

Conclusion

Hilti s an organization those are mainly associated with the mining industry. Therefore, while providing the best solutions to the customers the company has to make sure that they overcome the challenges that they are facing easily. Thus, the managerial or the leadership decision plays an important role for this particular organization. If the organization wants to provide effective solution to the individual project then they should overcome all challenges that they are facing. Thus, the culture and the structure of the organization play an important role in the growth and the development of the organization, and in the process of decision making as well.

This report discusses about the effective leadership theories such as Great Man Leadership theory, Trait Leadership theory, Contingency Leadership Theory, Situational Leadership theory and Path-Goal theory of leadership. These theories give a detailed explanation of the leadership phenomenon and the way the leaders motivate their team members. The impact of managerial style and its subsequent effectiveness is discussed in brief. The motivational theories such as   Content theories, Maslow’s Hierarchy of Needs, ERG theory, Theory X and Theory Y, process theories, expectancy theories, reinforcement theory, equity theory and goal-setting theory can enhance the motivation level of the employees. The theories such as Interaction theory that relate the work relationships and their interaction are discussed. The innovation and the creativity as well as the assessment of the importance of the learning are discussed. The evaluation of the effectiveness of the team work and the effective change management in the organization are discussed. The last part of the report focuses on a specific organization Hilti and analyzes the organization in terms of organizational structure and organizational culture is discussed. The impact of Hilti’s structure as well as culture on the organization is discussed. The different approaches towards the organizational decision making are discussed. The approaches for the risk and uncertainty management are also discussed. The report also evaluates the effective decision making practices for the organization. This report would broaden the understanding of the organizational behavior from a theoretical perspective. It would also foster the implementation of the theoretical learning in a real life scenario.

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