Managers fundamentally aim to influence all phases of modern organizations by providing organizations with competent and resourceful workforce (Bolman and Deal 2017). The essential role of managers is to guide organizations towards goal attainment. According to Bolman and Deal (2017), as majority of modern organizations tend to exist for distinct purposes, management constitute the accountability for combining and further utilizing organizational resources in order to ensure successful attainment of organizational goals and missions. Furthermore, in the view of Palmer, Dunford and Akin (2016), as group performance and team work play decisive role in realizing organizational goals, leadership becomes immensely vital for any organization for the proper execution of work. The purpose of the following paper is to evaluate the role of leadership, management and power in driving organizations towards success and attaining competitive advantage in the market.
Organizations operating in rapidly competitive market do not possess the opulence of stability because of its growing change in markets, consumers and technology. Thus, organizations needs to accept and implement changes in the business model by aligning to shifting developments, technological advancements, consumer preferences and potential concerns (Palmer, Dunford and Akin 2016). Bennett, Segerberg and Knüpfer (2018) have stated that the core business of organizations has been continually facing threats from new entrants in the marketplace who comprise superior and diverse business paradigm. Thus for meeting new challenges, the customary leadership techniques have evolved whereby line managers have taken over the role of leadership role. According to Lawson (2015), as leadership is a decisive factor for making an organization successful, these techniques however have been considered as the process of leveraging people to execute assigned tasks with utmost proficiency. According to Northouse (2018), leadership is the process of leveraging employees to perform efficiently towards organizational goal with confidence. Furthermore, management being a vital part of leadership aims to determine policies, standards and rules of guiding linkages and performance within the organization which to a certain degree determines the efficacy in attaining organizational performance and goals (Palmer, Dunford and Akin 2016). According to Christensen et al. (2014), where two or more individuals interact, the setting for formation of group is created. Furthermore, when individuals in the group purpose to co-exist and associate for universal purpose and when the group perseveres for an adequate period of time, modern organizations purposefully materialize. Thus the role of contemporary organizational leaders is to significantly contribute direction, management of the performance level of individual members comprising group and determining consistency (Berger 2017).
Christensen et al. (2014) have identified varied dimensions of leadership which drive modern organizations towards noteworthy achievements. At this juncture, Bennett, Segerberg and Knüpfer (2018) have mentioned the way organizations in shifting competitive industry have been emphasizing on theory of democratic leadership styles. Democratic leadership style fundamentally facilitates decision-making process to be distributed by the leader and the group. Furthermore, Lawson (2015) has stated that some of the major features of democratic leadership enable group members to share ideas and knowledge while leader maintain final decision over their decisions. However, Northouse (2018) has posited that theory of democratic leadership style involves all and varied attributes in the leadership process by addressing their ideas in the functioning of such organization.
One of the instances of democratic leadership style in competitive business enterprises can be witnessed through the leadership approaches employed at Tesco. Reports of Lawson (2015) have stated that leaders primarily aim to execute leadership approaches by rewarding most proficient employees. Such an approach however, enthuse other employees to perform towards achieving success. Meanwhile, Van Dooren, Bouckaert and Halligan (2015) have focused on organizational performance that is persistently being assessed through leaders’ supervision and power. However, under Tesco’s former leader Leahy’s tenure, employees of the organization have experienced democratic leadership styles whereby the former leader engaged every employee in attaining transformational change further signifying Tesco’s important management approaches (Lawson 2015).
Performance management system purposes to play vital role in Human Resource Management by aligning as well as optimizing individual performance with overall functioning of the organization (Bedford 2015). There can be identified several strategies of performance management system to abridge the process of management which further aids in creating performance management process highly proficient for organizations. However, control theory can be considered as a vital theory for successful sustainability of performance management. Strauss and Parker (2018) have stated that control theory facilitates performance of all systems to successfully align with overall goals and missions of a company. Furthermore, Strauss and Parker (2018) have emphasized on the role of control theory in the process of performance management which fundamentally assess the output of the system for its reliability and constancy with predefined sets of parameters. Control theory further helps managers to regulate rapid and improved outputs by regular supervision as well as response. Sani and Maharani (2015) have noted that cybernetic model implies that if an organization can efficiently execute control and performance, it can easily deal with rapid changes in its external environment.
Cybernetic Model of Control Theory
Source: (Bennett, Segerberg and Knüpfer 2018)
Van Dooren, Bouckaert and Halligan (2015) have noted that an employee desires to accomplish essential needs by working in an organization. Once these needs correspond with organizations’ norms and demands, the desired behaviour will be attained. Consequently, these needs and requirements tend to develop control theory as a more appropriate approach by serving as a vital controller in aligning employee conduct and performance with the organizational behaviour norms, values and standards by further leading to attain preferred performance (Palmer, Dunford and Akin 2016). Meanwhile, Berger (2017) has stated control theory supposes that employees look at their opinions whereby the feedback regulates the excellence of the output. Nevertheless, controlling of opinions and views tend to have unconstructive impact as it could lead to reduced level of motivation and efficiency of the employee.
Thus, in control theoretical context, employee performance has been controlled by the incentives, rewards and recognition which an employee attains once performance successfully accomplishes the standards of the organization (Van Dooren, Bouckaert and Halligan 2015). Barrick et al. (2015) are of the opinion that in order to elevate the performance of employees, managers engaged in modern organizations must allocate distinct and challenging goals to employees which raise their performance. Thus, organizations should evade the indistinct goals which do not have distinct standards with direct feedback as without distinct opinions and proper standards, employees will be unable to resolve any challenges or discrepancies (Sani and Maharani 2015).
Van Dooren, Bouckaert and Halligan (2015) have emphasized the understanding of employee behaviour necessitated to implement organizations’ business approaches and implementation of HRM system to stimulate and underline those behaviours. A comprehensive understanding of organizations’ behavioural essentials cannot be attained without taking into account several aspects of the internal organizational perspective (Bennett, Segerberg and Knüpfer 2018). As a result, according to Palmer, Dunford and Akin (2016), decisions regarding Human Resource Management must be comprehensively integrated with decisions and opinions about technical expertise and also ways of structuring organizational patterns and types of culture to create. Barrick et al. (2015) have stated that linking successfully with internal as well as external stakeholders typically involves informing and educating associates about HRM-centric issues and further construing information through HRM lens.
In recent times, performance management is primarily embedded in ‘performance control approach’ which successfully set measurable objectives and evaluate against targets. Several modern organizations such as Cisco UK have established distinct goals under discussion with leaders of the company. As Cisco constitute several assessments throughout the year to sustain employees’ activities and performance, the company has significant opportunities for managers and employees to discuss their developmental opportunities half way through the year that is known as Mid Year Career Discussion (Moorhead 2018). In addition to this, Barrick et al. (2015) stated the importance of employee evaluation and appraisal along with discussing the need for growth with managers on a yearly basis.
Along with descriptive expectations and goal establishment, HR managers further need to determine concepts of incentives, rewards and recognition in order to increase the level of motivation and interest among employees who have been showing reduced job engagement towards the organization (Sani and Maharani 2015). Furthermore, Van Dooren, Bouckaert and Halligan (2015) have stated that modern organizations primarily offer monetary and non-monetary rewards and further accept philosophies, norms, regulations and procedures employed by organizations to efficiently develop as well as sustain reward systems which leading to significant organizational success.
Conclusion
On a concluding note, as group performance and teamwork are vital for considering organizational goals, leadership emerges as a crucial factor for well-functioning of organizations. Through leadership, managers can successfully leverage people under the leadership approaches to successfully implement sociable and inclusive attitude for achievable performance. Such leadership styles fundamentally intends motivates employees to an increased level of performance through strong human management system. As democratic leadership is considered as a dynamic leadership pattern, it emphasizes on establishing organizational environment that supports integrated employee participation and drives employees and organizations towards significant success.
References
Barrick, M.R., Thurgood, G.R., Smith, T.A. and Courtright, S.H., 2015. Collective organizational engagement: Linking motivational antecedents, strategic implementation, and firm performance. Academy of Management journal, 58(1), pp.111-135.
Bedford, D.S., 2015. Management control systems across different modes of innovation: Implications for firm performance. Management Accounting Research, 28, pp.12-30.
Bennett, W.L., Segerberg, A. and Knüpfer, C.B., 2018. The democratic interface: Technology, political organization, and diverging patterns of electoral representation. Information, Communication & Society, 21(11), pp.1655-1680.
Berger, A.A., 2017. Political parties: A sociological study of the oligarchical tendencies of modern democracy. Routledge.
Bolman, L.G. and Deal, T.E., 2017. Reframing organizations: Artistry, choice, and leadership. John Wiley & Sons.
Christensen, T., Lægreid, P., Roness, P.G. and Røvik, K.A., 2014. Organization theory and the public sector: Instrument, culture and myth. Routledge.
Daft, R.L., 2014. The leadership experience. Cengage Learning.
Lawson, A., 2015. What difference has a year under new leadership made for Tesco?. Available from https://www.independent.co.uk/news/business/analysis-and-features/what-difference-has-a-year-under-new-leadership-made-for-tesco-10473953.html Accessed on 13 December 2018.
Moorhead, P., 2018. Cisco’s ‘People Deal’ Exemplifies Its Cutting Edge Commitment To Employees. Available from https://www.forbes.com/sites/patrickmoorhead/2018/08/08/ciscos-people-deal-exemplifies-its-cutting-edge-commitment-to-employees/ Accessed on 13 December 2018.
Northouse, P.G., 2018. Leadership: Theory and practice. Sage publications.
Palmer, I., Dunford, R. and Akin, G., 2016. Managing organizational change. McGraw-Hill Education.
Sani, A. and Maharani, V., 2015. Relationship between Human Resource Management (HRM) Practices and Organizational Performance Moderated by Organizational Commitment. Australian Journal of Basic and Applied Sciences, 9(7), pp.185-188.
Strauss, K. and Parker, S.K., 2018. Intervening to enhance proactivity in organizations: Improving the present or changing the future. journal of management, 44(3), pp.1250-1278.
Van Dooren, W., Bouckaert, G. and Halligan, J., 2015. Performance management in the public sector. Routledge.
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