Difference and Diversity of Leadership Styles Essay Example
This article will discuss the leadership styles of two CEOs in the automotive industry, assess the effectiveness of their approaches, and evaluate various management strategies. Furthermore, we will examine how organizational theory supports the practice of management.
While discussing the impact that different leadership styles may have on motivation in organizations, we will compare the applications of different motivational theories within the workplace. To conclude, we will evaluate the usefulness of a motivational theory for managers (Winkler, 2010).
THE BAVARIAN MOTOR WORKS COMPANY (BMW).
Leadership, like swimming, cannot be learned solely through reading articles, books, journals, or magazines or by analyzing content from the library. Therefore, it is essential for the CEO of a company to employ a unique leadership style that comes from within to achieve desired success. The achievements of a CEO are determined by the l
eadership styles they employ.
This suggests that there are multiple leadership styles utilized by managers in a company to oversee all activities. This leads us to Bavarian Motor Works, also known as BMW, a German company specializing in engine manufacturing, automobiles, and motorcycles. Established in 1916, BMW is the parent company of various other premium motor brands such as Rolls-Royce Motor Cars. The company's main objective is to achieve profitable growth. Harald Krueger serves as the CEO and believes that the reason many leaders fail is due to disregarding short-term planning and prioritizing long-term planning instead. His leadership approach involves a commitment to addressing both present and future concerns.
Harald emphasizes the importance of finding a balance between market-making and disciplined execution. He proposes that we have two options: effectively managing our current assets and personnel to optimize returns or investing i
the future and relying on upcoming products and services to improve our unsatisfactory present situation. Prior to joining BMW, Kruger oversaw the Rover engine factory in Hams Hall, which was not operating at full capacity. The company also encountered difficulties due to limited funding for innovation and market research. However, after three years, they managed to successfully manufacture motor vehicles that outperformed competitors in terms of efficiency and cost-effectiveness.
Harald's success led to his appointment as a member of the board in charge of Human Resources. Throughout his career, he has held various board positions, accumulating extensive managerial expertise. Having been at BMW for nearly a year, his achievements can be credited to his consistently "polite" management style that he has applied in all previous organizations.
Harald utilizes a democratic leadership approach at Bavarian Motor Works. He encourages employee participation in decision-making and values open communication and delegation of responsibilities. This leadership style has led to the company's success. Krueger, the CEO, actively seeks feedback and fosters a supportive work environment. Additionally, he receives strong support from shareholders Susanne and Stefan, who prioritize long-term strategies and engagement in the high-tech industry.
Harald, with the support of Manfred Schoch, the union leader and a member of the board of directors, as well as key members of the board of management like Friedrich and Frolich, has created a positive work environment in BMW. He delegates responsibilities and decision-making to employees, resulting in increased contentment, motivation, and enthusiasm among the workforce. Harald's success stems from his open discussions with employees, which naturally lead to better decision-making and increased productivity. (Government Research Corporation, 1973)
The company has improved its performance by maintaining
a close relationship between the employees and the CEO, who is always informed and updated by the employees about crucial situations in the motor industry market.
THE NEOCLASSICAL ORGANISATION THEORY.
The CEO of BMW uses the neoclassical organization theory, which demonstrates genuine concern for the employees. This friendly approach alone has been enough to enhance productivity. The executive board of directors at BMW has fostered a cohesive environment with shared values and goals.
THE THEORIES OF MOTIVATION APPLIED WITHIN THE WORKPLACES IN THE BMW COMPANY.
The Two Factor Theory (Herzberg)
BMW ensures that employees work under favorable conditions with job security and competitive salaries to prevent them from seeking other opportunities elsewhere (Dubrin, 2015).
While providing health insurance to its workers, the BMW Company maintains positive policies and interpersonal relationships (hygiene factors).
The Equity Theory.
At BMW, employees are rewarded in proportion to their contributions to the company's business. For example, employee A may receive a 30% raise while employee B receives a 15% raise based on their inventions for the company.
The Reinforcement theory.
BMW employees receive rewards for making sales. However, those who do not achieve exceptional sales of BMW products do not receive any rewards.
TESLA MOTORS.
Tesla is a motors company that has experienced the best the motors market has to offer. It is led by Elon Musk, the CEO, who believes that the company must operate with exceptional capital efficiency to succeed in the car business. Tesla has successfully achieved this goal.
Tesla leadership
Elon Musk's leadership style is focused on realizing the visions of Tesla Motors. He demonstrates perseverance, dedication, and
an incredible sense of vision, inspired by the company's vision.
According to Iqbal (2011), Elon Musk possesses a distinctive and noteworthy quality: a steadfast belief in his vision and a determination to make his plans succeed. Musk's leadership style revolves around his vision, making decisions prior to starting any project. Additionally, Musk sets industry standards and defines the framework for projects he envisions. As a transformational leader, Musk remains open to change and is flexible in his approach. Conversely, leaders who resist change often clash with individuals like Elon.
Musk utilizes his transformative abilities to identify viable and non-viable aspects for the company, distinguishing him from other industry leaders. One of the notable successes attributed to his distinctive leadership skills is the approval of the California High-Speed Rail system. Collaborating with engineers from SpaceX and Tesla, Musk designed the Hyperloop, a transportation system that promises to transport individuals from Hayward to Sylmar in just 35 minutes or less for a distance of 350 miles (Pride, Hughes, and Kapoor, 2013).
Musk's visionary and genius skills drive the company's goals, with self-belief being one of his key leadership qualities. Other qualities include persistence and the ability to navigate obstacles that may arise during projects (Northouse, 2010).
ORGANIZATIONAL THEORIES APPLIED IN TESLA
Elon also incorporates organizational theories in the company's operations. The following theories are employed:
System theory
The leadership structure of the company remains stable, as changing the board of directors could significantly impact processes such as production and sales, potentially slowing down profit realization (Pride, Hughes, and Kapoor, 2013).
The structure of Tesla as a multinational company is based on the theory of organizational structure. Each unit of the company has
its own management, allowing for autonomous operations. This decentralized structure has allowed Tesla to become a large conglomerate with operations in various fields, minimizing risk (Pride, Hughes, and Kapoor, 2013).
Tesla is a learning organization that has developed a shared vision with both its employees and consumers. This commitment to achieving its goals can be seen in the company's dedication to its vision of becoming the leading motor industry (Winkler, 2010).
Bibliography
- Dubrin, A. (2015). Leadership + mindtap management, 1-term access. Place of publication not identified: South-Western.
- Government research corporation. (1973).
According to the National Journal Reports in Washington, the Government Research Corp. found that leadership styles have an impact on the effectiveness of organizations. The study analyzed selected organizations in the IT sector in Karachi, conducted by T. Iqbal in 2011. Another author, P. Northouse, also contributed to this topic.
The following text includes the title and author of a book on leadership theory and practice, along with a list of the authors.
G. (2010). Leadership: theory and practice. Thousand Oaks, Sage Publications.
(2013). Foundations of business. Mason, OH: South- Western/Cengage Learning.
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