Organizational Theory of Leadership

Organizational Theory of Leadership

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Leadership Styles:

Leadership can be defined as the ability to guide and lead others. It is the skills and quality poses by the individuals that make them effective leaders. Leaders should have the quality to inspire and motivate their followers so as to improve their performance. Leaders not only aim at completion of the tasks of the employees but also focus on the skill development of the employees that are working under them.Different leadership styles have been discussed below for better understanding of difference in the leadership of the people:

Democratic leadership style: It is identified as one of the best leadership style so far. The leaders that follow this leadership styles allow their followers or the employees to participate in the decision making process by sharing their own views and opinions. The final decision has been taken by the leaders only but he tries to consider the views of the employees and takes decision that benefits the employees as well.

Autocratic leadership style: This is the most strict leadership style that focuses on maximum use of employees for the completion of the task. These leaders make the decisions on their own without prior consideration of the employees. Employees under these type of leaders works with pressure and are not allowed to innovate things on their own.

Laissez-Faire: The leaders with this approach act as the guide and do not interfere with the work process of the employees. The employees that are guided by these leaders are free to work according to their will and have more scope of growth opportunities.

Recommendation to Mama Mia:

Mama Mia is the organisation that is following the autocratic leadership style in the organization. Employees there are not allowed to implement innovative practices neither managers try to opt this. They only perform the tasks in order to achieve the organizational objectives and not focus on the achievement of individual objectives simultaneously. It has been recommended that Mama Mia should opt for “democratic leadership” style. This leadership style supports the company to improve in the following ways:

  • Helps in involvement of employees in the decision making process.
  • Innovative practices can be used according to the current environment changes.
  • Reduction in the employee turnover
  • Improved performance of the business by increase in the number of satisfied customers.

Organizational Theory:

Classical theory: It is the first theory that has been given after studying the organization as a system. Classical theory considered the organization as a formal system with proper delegation of authority, accountability and responsibility. Formal organization is the one that is deliberately created with the defined job, specific responsibilities and authorities etc.

Neo-classical theory: It is also known as human-relation theory. This is because this theory concentrates on making good human relation in order to manage the organisational structure. Elton Mayo has given theory and argues about the fact that there should be informal relations between the employees so as to remove the communication barrier.

Modern organization theory: Modern organization theory deals with many approaches such as system approach, socio-technical approach and situational approach. This is the theory that focuses on the organization that is task oriented as well as employee oriented. This theory is based on balancing between the achievements of organizational objective.


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