Page 281 - Introduction to Business

CHAPTER 7 Motivating and Leading Employees 255

Good leadership (see Exhibit 7.1) is the art of motivating employees to enhance leadership The art of motivating
their performance in order to achieve corporate goals ethically. Researchers have employees to enhance their
performance in order to achieve
debated for years whether leaders are born or made, whether a person who lacks corporate goals ethically
charisma can become a leader, and what makes some leaders succeed while others
fail. Are tall people better leaders than short people? Are good-looking people bet-
ter leaders than not-good-looking people? Studies have shown that one cannot
explain leadership by intelligence, birth order, family wealth, nationality, economic
or social environment, level of education, ethnicity, race, or gender. From one
leader to another, there is an enormous variation in every one of these factors.
Four timeless and culture-independent elements of successful leadership have
recently been identified. 13 First, is adaptive capacity, the ability to adapt to cir-
cumstances whether war, imprisonment, or sudden economic swings. Most lead-
ership failures in business, the authors argue, are the result of a failure to adapt to
changing circumstances. Second, is the ability to create shared meaning, to moti-
vate people behind a common goal, even in the face of adversity. Tolerance, even
encouragement of, dissent is an important factor. Third, is personal voice, authen-
ticity, and character, founded on a strong set of principles about how people
should be treated. Finally, is integrity, the delicate balance of ambition, compe-
tence, and morality. All of these factors play a crucial role in the lives of successful
leaders.

Major Leadership Theories

Organizations all over the world adopt differing leadership practices or styles,
which are based largely on a firm’s leadership philosophy and its business environ-
ment. Leadership styles are identified in leadership theories that have evolved over
time, and they have and will continue to impact organizations in the future. Sum-
marized below are some of the major leadership theories.

Servant Leadership

This theory characterizes the leader as a steward in his or her relationship with
those in the organization. The leader is obligated to enhance the material wealth
and reputation of the organization and leave behind a legacy. Hence the organiza-
tion’s success is the foremost priority for servant leaders, whose role is to create a servant leadership The leader creating
working environment that induces participants to function at their best. Leaders a work environment that induces
participants to function at their best
must provide appropriate tools (training and equipment) and opportunities
(through a well-thought-out strategy) to followers so that they can be efficient
(doing things right) and effective (doing the right thing). An effective servant
leader’s role is to create an environment that will motivate people to perform bet-
ter all the time and provide them with appropriate tools for achieving the corporate
vision in an ethical manner.

Transactional and Transformational Leadership

In the context of political and social movements in countries, the role of a leader is
to make followers do something that they would not have done otherwise. In the
14
context of organizations, transactional leadership occurs when a leader takes the transactional leadership The leader
initiative and provides followers rewards (promotion, salary increases, and greater providing followers rewards for good
performance or reprimanding followers
responsibilities) for good performance or reprimands followers for unacceptable
for unacceptable performance

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