The Small And Medium Sized Enterprises Business Essay Example

information. Being open to changes and overseeing team productivity and well-being are important. As a propagator, they must disseminate external information through liaisons and internal information through the team. As a spokesperson, they represent and speak on behalf of the organization to foreigners.

The leader is responsible for communicating information about the organization and its goals to external parties such as the board, the public, and stakeholders. They are also in charge of making and implementing changes within the organization, resolving current issues, managing unexpected disruptions in the team or organization, and handling media disputes.

The above text focuses on the responsibilities of a leader, encompassing activities such as resource allocation and negotiation. It further delves into distinguishing leaders from managers. Moreover, it examines the leadership role and evaluates success in small and medium-sized businesses.

Within a profit-oriented economic system, the leader's role is to lead and direct the collective endeavor towards a common objective. Although influential qualities are required for the leader, they may not necessarily possess complete authority. The team works together with a unified motto.

Leadership focuses on establishing a vision and inspiring others, while directors oversee overall administration and productivity. However, there are key distinctions between leaders and directors:

• Managers administer while leaders innovate.
• Managers demand while leaders bid.
• Managers maintain while leaders develop.
• Directors concentrate on systems while leaders focus on people.
• Directors strive for control while leaders inspire trust.
• Directors have a short-run view while leaders have a long-run

end.

is measured in small and medium enterprises. Now, our attention turns towards becoming a leader as an individual and the significance of followers in establishing a successful leadership profile.

The text discusses the qualities of a successful leader and refers to Mintzberg's 10 managerial functions from his book "Mintzberg on direction: inside out unusual universe of organisation" in 1990. These functions are divided into three categories: interpersonal, informational, and decisional. The text then introduces Bass's theory of leaders, which explains three ways in which people become leaders according to Stogdill (1989) and Bass (1990).

Two theories, known as the Trait Theory and the crisis theory, explain the emergence of leadership in a small group of individuals. The Trait Theory states that certain personality traits naturally lead people into leadership roles. It is one of the major branches in the study of personality and suggests that individuals possess broad temperaments. On the other hand, the crisis theory proposes that a crisis or significant event can cause an ordinary person to rise to the occasion and exhibit exceptional leadership qualities.

This is the "Great Events Theory". According to this theory, a crisis or important event may cause an ordinary individual to showcase their hidden talents. People can choose to become leaders and learn leadership skills. This is known as the "Transformational or Process Leadership Theory".

The theory that this usher is based on is widely accepted today. It is defined by Bass as transformational leadership, which focuses on how leaders affect their followers and aims to gain their trust, admiration, and respect.

According to Bass, leaders transform their followers in three ways:

• By increasing their awareness of the importance and value of their

tasks.

The influence of situations, personal values, and organizational values on leadership behavior.

The influence of leadership behavior can be easily explained by "John Adair's Action Centred" leadership theory. John Adair, a British speaker who was born in 1934, developed his Action Centred Leadership model while giving a lecture at the Sandhurst Royal Military Academy and working as an assistant director and head of the leadership department at The Industrial Society.

During the 1960s and 70s, Adair's work on leadership was considered relatively recent compared to other management theories. Adair emphasized the original meanings of the words to highlight this distinction: Leadership, derived from an Anglo-Saxon word meaning the road or path ahead, is about making decisions and guiding others towards it. On the other hand, managing, derived from the Latin word 'manus' meaning hand, is more associated with overseeing a system or machine. The concept of managing originated in the 19th century when engineers and accountants started becoming entrepreneurs. The action-centered leadership model focuses on what leaders do and suggests that their effectiveness depends on meeting three types of needs within a working group.

They are:

• Task needs; accomplishing the undertaking.
• Team Maintenance Needs; managing the group or squad.
• Individual Needs; managing individuals.

The Action Centred Leadership model therefore does not stand alone, it must be part of an integrated approach to managing and leading, and also should include a strong emphasis on applying these principles through training. From the above action centred leadership model we can say that Directors desiring to be effective leaders should continue to

strive to achieve the needs within the team. Balance the task at hand while also maintaining or sustaining the needs of the team and the individual within it. When comparing with other theories, it is important to bear in mind what each is suggesting. Often one theory cannot be used in isolation when completing the characteristics of good leadership.

Influence on leadership behavior by the personality:

The behavioral approach to leadership was explained by Austrian psychologist "Fred Edward Fielder (1992)" where he describes about the contingency theory.

Contingency theory:

Contingency theory proposes that there is no single best method for managing a company, making decisions, or directing its overall path. It argues that the most successful approach depends on both the internal and external conditions of the company. The organizational structure is shaped by various factors in the environment. There is no definitive universally applicable approach for administration.

The significance of a leader's personality and the current circumstances they are in is emphasized in contingency theory, highlighting how one impacts the other. Contingency theory suggests that there isn't a superior way to organize a corporation, lead a company, or make decisions. The best course of action depends on specific internal and external circumstances. When considering this theory, many people often associate contingencies with being influenced by a group or event, but rarely consider its connection to leadership or relationships.

Fielder's theory has had a significant impact on all management theories by rejecting the notion of a single ideal organizational approach. Instead, Fielder's theory evaluates a potential leader's dominant work style, which can range from task-oriented to relationship-oriented. Depending on various factors such as the nature of work, adaptability to change,

and use of technology, organizations can customize their coordination of resources, people, and tasks to adopt an appropriate and effective management approach. According to Fielder's theory, most situations have three aspects that determine the leader's role:

• Atmosphere
• Group confidence in the leader
• Loyalty to the leader

If all three dimensions are high, then the situation is favorable for the leader. In other words, if followers generally accept and respect the leader, if the task is well-structured, and if the leader holds significant authority and power within their position.

Aspects of leadership behavior:

It is widely acknowledged that effective leaders do not possess specific traits. Therefore researchers have attempted to identify behavioral characteristics associated with effective leadership.

Instead of identifying effective leaders, researchers have also aimed to understand the actions of effective leaders. This includes how they delegate tasks, communicate with and motivate their followers or employees, and carry out their duties. The focus has been on leadership behaviors, which can be learned, suggesting that individuals trained in appropriate leadership behaviors would be more effective. These researchers have focused on two aspects of leadership behavior.

• Leadership function.
• Leadership style.

Researchers investigating leadership functions have found that groups require someone to fulfill two major functions: task-related or problem-solving functions, and group maintenance or social functions. Examples of group maintenance functions include mediating conflicts and ensuring that individuals feel valued by the group. An individual who can successfully perform both functions would be an especially effective leader.

There are times when a leader can only fulfill one role due to ability or

availability. However, this does not mean the group will fail. Research has shown that successful groups often have shared leadership, where one person (usually the designated leader) takes charge of task-related issues while another member handles social responsibilities. These two aspects of leadership, pertaining to tasks and group maintenance, are usually demonstrated through different leadership styles.

Directors who closely supervise employees with a task-oriented manner ensure that the task is completed satisfactorily. Emphasizing on completing the job holds more importance than the growth and satisfaction of employees. Directors with an employee-oriented manner emphasize more on motivating and empowering subordinates rather than controlling them. They aim to establish friendly, trusting, and respectful relationships with their employees and often involve them in decision-making processes that impact them. While most directors incorporate elements of both styles, they prioritize either tasks or employees to a greater extent.

Ability to construct squad and motivate:

Team building, a concept of job design, focuses on viewing employees as members of interdependent teams rather than individual workers. It encompasses various activities aimed at enhancing team performance in businesses, schools, sports teams, religious groups, and non-profit organizations. Team building encompasses a range of practices, from simple bonding exercises to complex simulations and multi-day retreats that include group assessment and group-dynamic games. It is a part of organizational development theory and practice but can also be applied to sports teams, school groups, and other contexts. It should not be confused with recreational activities solely designed for fun and entertainment, known as "team diversion." Successful leadership can also contribute to team dynamics and improve overall morale in daily organizational operations.

Team building is a crucial

aspect in any setting, with a focus on bringing out the best in a team to promote self-development, positive communication, leadership skills, and problem-solving. There are various ways to motivate or inspire team members within a group. Some of these methods are mentioned below.

- Public praise: Everyone appreciates recognition for a job well done, and taking the time to sincerely and genuinely thank a staff member in front of their peers will boost their self-esteem.
- Training for all: Training serves as a great form of motivation and also demonstrates your willingness to invest in their growth. Encourage individuals who receive training to share their new insights with the rest of the team.

Extra duty: Recognize when a member of your squad wants and deserves extra responsibility. Intelligent individuals often yearn for opportunities for growth, understanding that acquiring additional skills makes them more marketable. Show flexibility and kindness: Occasionally, team members may need unexpected time off. Try to be understanding and accommodating with such requests. In return, staff will often work very hard to compensate for any lost effort.

When employees are happy, they tend to be more productive. It is important to provide clear goals and objectives for employees to work towards in the short and long term. It is also beneficial to improve someone's job title as it can greatly impact their personal satisfaction and how they are viewed in the workplace. Lastly, maintaining trust and integrity as a manager is crucial for team morale and cohesion. Playing employees against each other only damages teamwork and unity.

You need to be prepared to demonstrate unity and support your staff when necessary.

The Role

of Leaders in Organizational Change:

When examining the dynamics of leadership, we learned about the definition of leadership and the main responsibilities that a leader must adhere to in order to become a successful leader. Now we will discuss the contributions that leaders can make to organizational change.

These contributions can include:

Transparency with coworkers: Leaders should be open and honest about all changes with their team members. They should share all relevant information with their team. Maintain optimism among team members: Effective leaders maintain a positive outlook on the future, even during times of change.

It is important that your co-workers are aware of your belief in a brighter future. However, it is also crucial to provide them with a realistic assessment of the challenges that your organization must overcome in order to achieve that better future. It is essential to keep your employees fully informed. In situations where downsizing is occurring, there tends to be a lot of uncertainty among employees.

To alleviate confusion and share bad news, it is important to state the truth. If you try to reassure employees by saying things will calm down after the reorganization, it may become problematic if that is not true. Additionally, when announcing a change, employees' trust will decrease. Instead of telling them it will be over soon, they need to learn how to manage these changes. Instead of cutting the work burden, if the organization has downsized, it is likely that only the workforce was cut. Therefore, pretending things are the same is not possible. However, priorities can be reorganized on a task-by-task basis. You can eliminate unnecessary tasks, forms, and

procedures.

By promoting your associates, you can encourage them to allocate time in non-critical, everyday tasks, allowing them to free up time for more important matters.