Theories of Leadership and People Management


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Leaders – people who made and drive our world. But let’s find out what is this complicate puzzle which we call a Leader.

At the moment we have a few theories that explain nature and how to find a leader.

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  1. “Great Man” Theories – Leaders do not become leaders, they are born as leaders.
  2. Trait Theories – Get leadership qualities through a related relationship is a key factor.
  3. Contingency Theories – The style of leadership should change from changes in factors.
  4. Situational Theories – Similar to something on the Contingency theory.
  5. Behavioral Theories – Anyone can learn to be leaders
  6. Participative Theories – Leaders admit ideas and of other people, but the right to make decisions remains for the leader.
  7. Management Theories – The theory of “carrot and stick” – means encouragement and punishment.
  8. Relationship Theories – High moral model of behavior of managers who are interested that the employee realizes full potential.

Skills and Attributes Needed for Leadership

Now when we found out how to see “handprint” of a Leader, we need to understand what this Leader is. Leadership is an action, which supported by different skills which can lead company/person to success.

We have traits that I think one of most important skills and attributes is:

  1. Flexibility
  2. Clarity
  3. Motivation
  4. Communications
  5. Responsibility
  6. Coaching
  7. Team work
  8. Fearless Agility
  9. Cultural Intelligence
  10. Versatility

Differences Between Leadership and Management

But in our world many people can have these character traits, how to define who is a Leader and who is not? Not each manager of you is a real Leader, and which Owner is not a Leader at all. So here we can give you hints

  • Leaders inspire people to bring dreams into reality – Mangers think how to obtain basic goals
  • Leaders follow changes and modify it in innovations – Managers follow structure which works at the moment
  • Leaders are “homemade” and unique, they create their own brand – Managers are chameleons, coping others attitude
  • Leaders are openminded for new ways and ideas – Managers afraid to jeopardize, afraid to take a risk
  • Leaders are loyal to long term goals – Managers concentrate only in daily goals
  • Leaders curios to learn new skills – Manager belongs and rely on their existing experience
  • Leaders pay particular attention in individuals (people) – Managers focus on structure and mechanism
  • Leaders encourage initiatives and appreciate potential – Managers point to tasks and certain way how to do it
  • Leaders make people to admire to follow them anywhere – Managers have employees for short -term

Examples of Past and Present Business Leaders

For example, we will take Coco Chanel – business leader in fashion in 60s and Ursula Burns CEO of Xerox. Two incredible women, business leaders from past and present. Both of them I will classify as Leaders, and that why:

  • Coco Chanel admire whole Paris to follow her vision and bring new word and style in fashion. She had long term goal to make woman independent by way how they express their self in clothes
  • Ursula Burns willing to risk and encourage initiative of her workers. She curios to learn new skills and never stop grow that why Xerox still on the top of position.

Different Style of Leadership

This is unique, and we can call it style. But what is the style of Leadership? Here is few:

  1. Autocratic
  2. Democratic
  3. Strategic
  4. Transformational
  5. Team Leadership
  6. Cross -Cultural
  7. Facilitative
  8. Laissez – faire
  9. Transnational
  10. Coaching
  11. Charismatic
  12. Visionary

Example of 3 Real-life Examples of Different Type of Leadership Styles

(Compare leadership styles for different situations)

First example is Donald Trump (Trump Organization), he follows Autocratic style of leadership when all power is concentrated in the same hands – in the hands of the Leader. Leader does not consult with the staff and takes all decisions independently. His decisions to rebuild building in Manhattan and give them new live when everyone was voting to destroy it, bring him money and gave thousands of people a work to do. I think in this particular situation, with this particular person this style is working.

Second Example Charles Bolden, director of Nasa who follows Cross -Cultural style. Project Kepler, Juno and others included different specialists from different countries. Charles find a way how to make all people work in peace and learn from each other and then make it work great for whole planet Earth. I think this style is work perfectly if people are open mind and have good leader who can unite them under same goal.

And of course, Richard Branson founder of Virgin group who is prefer Laissez- Faire style. He inspires his people and give them tools to be leaders. I will pick up whole his business as an example. I can say that its perfect works and will help you lose people who need more direction and make loyal people who live under same idea.


Motivation. How many meanings we include in this word? One of traits of good leader it’s knows how to motivate people to achieve goals. We will show few ways below:

Ways of improving motivation and performance:

  • Pay a decent salary
  • Place of work should be favorable for employees
  • The field for their development and supports it
  • Support teamwork
  • Encourage happiness
  • Do not punish for every mistake
  • Be clear in task which you give
  • Do not be an overseer
  • Stop gathering useless meetings

Three motivation theories: Maslow, McClelland and Vroom.

And last but not least – reward system. Apart of all what we mentioned, what should be on daily bases in your work, reward system is unique tool which can help reward workers who work hard.

We have 3 motivation theories: Maslow, McClelland and Vroom.

Link Between Motivational Theory and Reward & Examples0

And few reward programs: pay-for-performance, bonuses, sharing of profit, long term benefit.

We will take as an example Google. Google united McClelland (they are motivated workers different as per their personality, they give them different task, range of power and affiliation), Maslow (satisfied their needs and give them free time with their family because apart of work they have their own life), Herzber’s Two factors Theories (to make leaders make their job also satisfied for employees and help employees find a way how to enjoy their job). McClelland and Herzber’s theory are combines with factors of bonuses and pay-for-performance reward programs.

Second example is Hallmark (U.S Television company) use Vroom theory which base on the expectancy. They make their employees believe that they can complete a task and through this achievement can get better position/salary/promotion. Company provide resources and support. Its combine with long-term benefits, bonuses and etc.

Effectiveness of Reward Systems in Different Contexts

Reward is a part of Theory and we can see Effectiveness of reward system in both examples:

  • Workers are loyal
  • Workers have high quality of work
  • All rewards are worth efforts
  • Leaders give clear task and reachable goals
  • Rewards linked to performance

To provide rewards correctly we need to know how to monitor engagement, here I will advise few steps:

  • Fulfillment of reasonable and clear goals
  • Survey or questionnaire for completed tasks
  • Action plan to adapt strategy for changes
  • Have face-to-face talk with employees to find advantages and disadvantages of task.

To have a dream-team and best result you can motivate your employees even more, just follow these steps:

  • Thanks employee for efforts/ completed job
  • Believe in your workers, give them autonomy and only advise changes
  • Find different ways of talk with different employees but treat them fair

Analyse the Development and Effectiveness of Teams

In work we spend 8 hours per day, 5 days in a week. Our workplace it’s our second home and our team are our family.

Assess the Benefits of Team-working for an Organisation

Let’s found which benefits we will get from it.

First is always creative process to work in a team, during meetings you brainstorm ideas and open for you new approaches to common goal from your team. As a conclusion: you maximize your knowledge by learning from others, you become more creative. In addition, you can develop your quality and improve them. while working in a team, you will observe how your colleagues use different approaches and see what works. This means that: improving its strengths and the ability to avoid mistakes. The longer you work in a team, the more you get closer and the stronger your connection with co-workers. Minor disagreements will be easier and the process of achieving the goal is faster. Trust and new friends – are not bad benefits, right? I have already mentioned that there may be conflicts and this is normal. In the family there are also disagreements. Working in a team you will have to resolve conflicts without resorting to the help of superiors. This means you will learning conflict resolution skills. However, main goal it’s a reach a goal which company ask to. We already found out in a team you will reach it fast, but what that mean? It means appreciation of high management, CEO and etc., which is expressed in loyalty benefits, promotions and etc. It turns out that the benefit is your recognition from the company.

Thus, we also confirm the fact that while working in a team you can take a chance and try to translate into reality what you have long wanted. because in the team in cases of defeat the burden of failure will be divided completely. Take reasonable risk, it’s our final benefit!

Working in a team as a leader and member towards specific goals.

Let’s say our goal is to make our brand well-known in the world. As a leader your main responsibilities are:

  • Set clear goals and explain why we need to reach them
  • Make work interesting! Avoid tediousness and routine
  • Be more flexible and approachable in communication with your team
  • Be visible, settle reasonable meetings
  • Show example, encourage your team, support them

As a team member you need to:

  • Be clear when you ask question and don’t shy to share ideas
  • Be respectful, supportive and initiative
  • Be a part of the team, solving problem together, give reasonable feedbacks

Effectiveness of the Team

Don’t forget to measure effectives of the team. How to do it? Easy, just follow this point:

  • Collect feedbacks from the team
  • Make a research on mistakes: why, at what stage?
  • Make a new strategy, work on weaknesses
  • Say thank to your team

If you achieve your goal its mean you team work effectiveness is 100%. If name of your company became more popular and bring more client, if you get positive feedback and your team still want to be a team it’s also confirms your effectiveness.

Human Behaviour in an Organisational Setting

To maximize success of your company you need to know how to monitor work performance.

Factors Involved in Planning the Monitoring and Assessment of Work Performance

Here is what you need to do:

  • find a suitable structure of monitoring
  • get proper feedbacks (when, how, what?)
  • use important metrics which we need to measure
  • outside factors which can affect or affected performance
  • check your model of business (involve data and link it between factors)
  • describe your main goal
  • review feedbacks
  • found out why some stages of your project were failed
  • work on new strategy


As example we will take Netflix company, we have few factors which was involved in planning of work monitoring:

    • collecting data

gathering information about regions, preferences, factors that can affect sales – are the main factors when developing a business idea and a module. this is the structure with which they work

    • data usage as per regions

this is the so-called primary feedback, helps the company remove something that does not work and add something new

    • meeting expectation

people expect the company to be a regular novice, good quality, interesting content and so on, to be successful company, Netflix need to meet all expectation

    • easy in use

simple interface, the ability to use the login on different devices – an attractive factor

    • feedback

after launch of the project, need to get feedback from clients, it’s a way how to get fresh opinion

    • new content

in the end, after all points, company lunch new content based on final result of monitoring

Plan the Assessment of the Development Needs of Individuals

Apart of it we need to know how to develop needs of individuals. Below you can see structure:

  • understanding needs
  • clear job description
  • talk personally with a worker
  • keep on track a work process
  • collect all needful information
  • prepare individual plan with an information how to make better strong sides and fix bad sides

Success of the Assessment Process

Success of the assessment process can be check as per points:

  • a goal reached
  • standards followed or improved
  • report done successfully with clear future business instruction
  • assessment of efficiency
  • review of middle stages of project was effective
  • workers were fully involved
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