Leadership And Management Example Essay Example

Further research from psychologists and researchers has unveiled additional styles including Transactional, Transformational, Charismatic, Bureaucratic, and Task-Oriented. These leadership styles play a vital role in shaping a leader's values and perspective. Accurate understanding of their own leadership style enables leaders to evaluate their strengths and weaknesses for more proactive and effective leadership (Raines 2012; Mind Tools 1996).

During my time in the financial sector, I have encountered three distinct leadership styles: participative, laissez-faire, and transactional. In the following section, I will discuss these styles and assess their respective pros and cons.

Mullin (2004) defines participative leadership as a style that involves consulting with and evaluating the opinions of all team members prior to making decisions. This approach is closely linked to consultation, consensus, discussion, involvement, and delegation.

From 2004 to 2008, I worked at Grupo Bancolombia, the largest retail bank in Colombia. During this period, my role involved merging Bancolombia and Conavi, the two leading banks in the country. Our main goal was to combine the services, offerings, and customer bases of both banks seamlessly, while ensuring smooth operations and client satisfaction. The successful establishment of Grupo Bancolombia in 2007 led to acquiring 4.5 million customers and generating ?245 million in profit within the first year after the merger.

During that time, working with a participative manager promoted teamwork, leading to collaborative projects. Each team member's input and initiatives influenced our business plans, problem-solving approaches, and management decisions. The team manager set clear mission, vision, and achievable goals for us. They also fostered a sense of shared purpose and objectives among the team members. Furthermore, my supervisor valued teamwork, effective communication,

and building strong relationships within the team.

During this phase of my career, I have cherished memories. Despite the common challenges of salary and long hours, I felt content and accomplished. Being involved in management decision-making made me feel valued and integral to the company, fostering a strong sense of belonging. According to Bass (1981), employees led by participative leaders tend to exhibit higher levels of commitment, loyalty, job satisfaction, and performance. However, while this approach yielded positive outcomes and achieved goals, it often required considerable time for gathering ideas and formulating appropriate actions, business plans, and solutions. As a result, the decision-making process could sometimes be slow-moving and not as efficient as expected.

A drawback of this leadership style is the assumption that everyone will willingly participate. To guarantee optimal plans and solutions for integrating products, services, and processes, it was essential to involve all departments and members from both organizations. It was vital not to overlook anyone. However, in certain instances, some members failed to grasp the importance of participation and chose not to share information. This directly impacted the project's success and outcomes.

In 2009, I encountered a different leadership style in the finance sector while working at CSS investments, a boutique broker company in London.

In 2008, three senior brokers established this company and ventured into the entrepreneurial world. The manager of the company adopted a laissez-faire leadership style, commonly referred to as "hands-off". Under this style, employees are granted maximum freedom and are entrusted with all authority. They are tasked with making independent decisions and solving problems based on their own knowledge and expertise. The level

of participation, communication, or contact between the employees and the leader is minimal, if not absent entirely (Goodnight, 2011).

Given our status as a small and emerging company, we faced challenges in administering and producing financial data. This data was crucial for guiding management decisions and enhancing broker performance. My responsibilities included strategizing, conceptualizing, and overseeing the implementation of automated systems to manage brokers' trading portfolios. The ultimate goal was to prioritize performance, revenue, and commission outcomes.

In this experience, I had the opportunity to work on a project independently for the first time. This gave me full control over decision-making in my area of expertise. While my manager provided support, resources, information, knowledge, and advice as necessary, their involvement in the project was minimal.

The ability to make management decisions led to increased job satisfaction and responsibility. It provided me with the flexibility to conduct extensive research without strict deadlines or limitations on time, resources, or finances. This role allowed me to showcase my creativity and originality while also challenging my commitment, accountability, and organizational abilities.

The downside of this leadership approach was feeling unnoticed as my manager lacked guidance and support. There was no monitoring of my performance, no feedback or encouragement received, and I never received recognition for a job well done. Consequently, it became difficult to stay motivated and engaged. My sense of belonging diminished within the company, leading me to desire collaboration and problem-solving with others.

The absence of opportunities for discussions and consultations with my manager was another disadvantage of the laissez-faire leadership approach. This led to heightened stress and frustration, as I

constantly questioned whether my skills and knowledge were adequate for achieving positive results.

Working for CSS made it challenging for me to maintain my focus on my goal.

The leadership style I have encountered at Banco Bilbao Vizcaya Argentaria (BBVA), in my current job, is important and should not be overlooked. As part of my responsibilities, I assist the director of Global Markets in various projects related to finance consolidation, global internal recruitment, and team structure optimization.

The manager, who is a transactional leader, oversees a global team of approximately 1,200 individuals. This team includes traders, analysts, salespeople, and researchers. The manager's leadership style relies on influence, power, and respect to effectively align with the hierarchical structure of the bank.

According to Bass (1990, p. 20), transactional leadership involves a leader-follower relationship that relies on rewards and punishments. This style of leadership motivates employees through the fulfillment of promises such as recognition, salary increases, and promotions, while those who do not meet expectations face penalties.

My boss has introduced a goal-reward program that includes substantial bonuses at the end of the fiscal year. This program takes into account both individual and team achievements. In order to encourage higher productivity and better results, the department relies on incentives as its main motivator. Personally, I have developed a strong competitive drive and am excited about the challenges, responsibilities, and goals that await me.

Each week, there is an evaluation of individual performance and department outcomes. If the objectives are not achieved, action plans are formulated to tackle future underperformance. Moreover, the team receives constructive feedback regarding their advancement towards

rewards or absence thereof.

Although not the most engaging leadership style for creating relationships and a highly motivating work environment, it is highly effective in producing excellent results in terms of productivity and profitability.

This approach has a limitation as it only focuses on training managers and executive directors, neglecting the improvement of soft skills. Moreover, it solely emphasizes individuals' ability to generate business and profit. Furthermore, employee loyalty to the company is low since they readily move to another bank with a better economic package.

The primary drawback of this leadership style is its assumption that individuals are primarily motivated by rewards while neglecting employee development and job satisfaction.

Today, organisations encounter a myriad of intricate challenges, including unpredictable economies, evolving environments, and advancing technologies. To confront these challenges, effective leadership is crucial in order to address goals, motivate employees, and optimize profit and organisational achievements.

This essay has covered three types of leadership styles, including Participative, Laissez-faire, and Transactional. These styles allow business leaders to inspire, guide, and impact their employees. Each style has its unique approach, viewpoint, and manner to shape the strengths and weaknesses of employees.

The impact of leadership styles on employee motivation, job satisfaction, and company loyalty varies as no particular style is deemed superior. Three managers with distinct leadership styles have effectively led their teams to achieve positive outcomes for their company.

Every leader is motivated by various influences, circumstances, and elements. Hence, it is crucial for leaders to discover their unique leadership approach. This self-awareness enables them to acknowledge their capabilities, address their limitations, and effectively guide thriving organizations.