Management Theory and Practice

ASSIGNMENT: MANAGEMENT THEORY AND
PRACTICE
VIRAL J SHUKLA
<SUBJECT: MANAGEMENT THEORY AND PRACTICE
ASSIGNMENT: MANAGEMENT THEORY AND PRACTICE
QUESTION: Define leader and leadership? Give classification of leadership

and some examples regarding types of leadership that is used by the
leaders.
ANSWER
Introduction:
A leader has the capacity to influence people around them and the way the
leader influence them is called the leadership. They influence the
employees and their followers to work effectively towards common goal.
There are various type of leaders and their leadership styles. A brief
introduction regarding them is as below:
Various types of leaders

Leaders are classified based on criteria like core competencies, skills,
proficiency and experience. Leaders working in an organization at different
levels are as follows
1. Corporate-level leaders
2. Business-level leaders
3. Functional-level leaders
4. Operational-level leaders
Concepts and Application:
Let us see in detail about various types of leaders in an organization. It is as

follows:
1. Corporate-level leaders: The corporate-level leaders are those who plans

the strategy for an organization’s future. They are at the top of the hierarchy
in an organization with designations as Chief Executive Office, Chief
Operating Officer, Directors, Presidents etc. The direct the business level
leaders for taking and implementing strategic decisions.
2. Business-level leaders: The business-level leaders are those who acts on the
instructions and strategies of the corporate-level leaders and who directs
the functional-level leaders. The common designations are vice-president,
general manager, regional managers, portfolio managers etc.
3. Functional-level leaders. These are the leaders who acts on the directions of
business-level leaders. They direct operational-level leaders to perform
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duties based on the directions from business-level leaders and they support
the operational-level leaders during their performance. The common
designation at this level includes departmental heads like finance manager,
marketing manager, Accounts Manager etc.
4. Operational-level leaders: Operational-level leaders perform under

instructions from Functional-level leaders and their major responsibility is to
execute the plans and strategies within their functional areas. They do this
by guiding the employees working at levels below them. Deputy and
Assistant Managers are examples of such leaders.
Now, having gone through the types of leaders in an organization, it is vital

to get a brief about the different types of leadership these leaders follows
in order to get their task done. There are various types of leadership styles
as follows
1. Autocratic leadership: Autocratic leaders takes decision on their own

and does not consider the suggestions of fellow members or staff. They
are dominant and execute significant power to implement their
decisions.
2. Democratic leadership: These leaders take decision based on the

suggestions of their fellow members and associated persons. They often
involve their staff or workers to participate and provide inputs in
decision making before coming on final decision.
3. Free-rein leadership: These leaders leave the decisions on the hands of

the people or employees they work with. They allow their team
members to plan their goals, act and take the decision as they deemed
fit as per the demand of the situation. This type of leadership may be
implemented where the team or employees are highly skilled, fully
aware and conscious about their roles and responsibility in their
organization.
4. Action-oriented leadership: These leaders are concerned with

achievement of the set goals in time and by this they create an
environment of fulfilment and success. They push employees to achieve
set targets and they monitor and controls the team based on their set
standards. Their compliance towards commitment is high.
5. Transactional leadership: These leaders follow “carrot and stick”

approach where the main focus in on the result. They motivate the
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employees by rewarding their performance or reprimand them if they

fall short. They value the structure of organization and use disciplinary
actions to maintain the status quo of the organization. This type of
leadership may work well in sales driven environment.
6. Transformational leadership: These leaders are proactive, have high

regard for morals, values, ideals and needs of their team. They are highly
self-motivated, have clear vision and decision-making power, are good
team builders all of which inspires people around them.
7. Charismatic Leadership: These leaders use their personal charm to

motivate their team and followers. Generally, they are experts in their
field, effective communicators and they inspire people with their work,
thoughts and talents they possess. They have in them the quality to
connect emotionally with the people around them, which sets them
apart from others.
8. Bureaucratic leadership: These leadership involves following of a set of

rules and regulations which clearly distinguishes the line of authorities
and accountabilities of individuals working in the system. The
management and decision-making task are broken down in a hierarchy
of authority and strict adherence to it is maintained. This type of
leadership is mainly found in government organizations or large
multinational corporations.
9. Situational leadership: In this leadership, the leaders assumes the style

of leadership as per the demand of the situation. There is no fixed
leadership style here and the leader will act according to the
requirement of the organization at that particular time.
Based on the given case of M/s Subodh Enterprise, a Corporate Level

Leader executing a Transformational Leadership style (Transformational
Leader) will be best suited. The reason for the suggestions is as below:
1. An organization requires a vision and mission to survive and remain

operational. Vision specifies where the organization wants to head and
mission provides the direction as to how the organization will reach
there. M/s Subodh enterprise lacks a proper vision and direction in
current situation. Transformational leader are leaders with clarity of
vision and they have enough courage to take decisions which supports
their vision. Therefore, in Subodh Enterprise, a transformational leader
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will be able to create clear vision and will be capable of inspiring the
team to bring in the required change in order to achieve the goals.
2. Transformational leaders are good motivators and team-builders. They

are highly self-motivated which inspires people and staff around them.
In the given case, where the existing leader lacks the necessary concern
for people, replacing him with a transformational leader will be
beneficial for bringing back the lost team spirit.
3. Transformational leaders are highly passionate, energetic and

emotionally intelligent. They engage with staff through effective
communication and inspire them for undertaking required changes,
create an ambience of intellectual stimulation thus enhancing the
morale and performance of them which in turn increases organization’s
productivity. These leaders are known to achieve high level performance
from employees and transform the organization to next level. Thus, it
may help Subodh Enterprise to change from non-profitable to profitable
one.
Conclusion:
In a nutshell, we understood that the leaders are classified based on their

levels in organization as Corporate-level, Business-level, functional-level and
Operational-level leaders and the various leadership approaches are
categorized as Autocratic, Democratic, Free-rein, Action-Oriented,
Transactional, Transformational, Charismatic, Bureaucratic and Situational
Leaderships. Now, it appears that for the given problem, where the
company is suffering a loss of profit for 5 years and has no clear vision or
direction to follow, a Transformational leader is best suited for this company
who by his clear vision, passion and decision-making ability; consideration of
individual’s and team’s moral, values and ideals and by being good
motivator and team builder as explained above, will transform the company
and take its overall performance to next level.
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ASSIGNMENT: MANAGEMENT THEORY AND

QUESTION: Define leader and leadership? Give classification of leadership

Various types of leaders

Concepts and Application:

Let us see in detail about various types of leaders in an organization. It is as

1. Corporate-level leaders: The corporate-level leaders are those who plans

4. Operational-level leaders: Operational-level leaders perform under

Now, having gone through the types of leaders in an organization, it is vital

1. Autocratic leadership: Autocratic leaders takes decision on their own

2. Democratic leadership: These leaders take decision based on the

3. Free-rein leadership: These leaders leave the decisions on the hands of

4. Action-oriented leadership: These leaders are concerned with

5. Transactional leadership: These leaders follow “carrot and stick”

employees by rewarding their performance or reprimand them if they

6. Transformational leadership: These leaders are proactive, have high

7. Charismatic Leadership: These leaders use their personal charm to

8. Bureaucratic leadership: These leadership involves following of a set of

9. Situational leadership: In this leadership, the leaders assumes the style

Based on the given case of M/s Subodh Enterprise, a Corporate Level

1. An organization requires a vision and mission to survive and remain

2. Transformational leaders are good motivators and team-builders. They

3. Transformational leaders are highly passionate, energetic and

In a nutshell, we understood that the leaders are classified based on their

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