Leadership is an essential part of any business studies curriculum. ONEgood businessmanMust be a good leader toostrong understanding and decision-making skills. And leadership is not a quality that develops overnight. It takes hard work, patience and a lot of persistence to become a good leader.
Here are some of the top management theories that marketing students learn about as part of their curriculum. I will discuss it5 basic theories of managementrelevant for the season. This isdifferent from standard management theoriesyou may have read as mentioned in the image below.
Transformational leadershipfirst introduced in the 1970s by the political sociologist James McGregor Burns. He identifies two different types of leadership, namely transactional and transformational.
Transaction managementis where the manager offers incentives to employees to influence their productivity. Transformational leadership requires the leader to motivate the workforce with words of encouragement and a personal connection.
Both of these management styles aim to improve the quality of work in an organization. However, they takedifferent approaches to inspire the team.
In practical situations, students can justify transactional management as offering benefits and monetary incentives. Transformational leadership is a more visionary and idealistic approach that thrives on transparent communication.
In practical or real world scenarios, transformational management is suitable for small businesses. This is because the workforce is small and therefore it iseasier to establish one-to-one communicationwith your team.
Transformational leadership also works for startups where the founders take a personal interest in the hiring process. Transactional management, on the other hand, is ideal for hierarchical organizations.
Employers can offer perks, bonuses and incentives to keep the workforce motivated. Thisthe technique works betterwhen you have a relatively large workforce. It saves the manager time and effort from having to personally interact with each member.
Leader-Member Exchange Theory
The Leader-Member Exchange Theoryor LMX theory takes a more modern and realistic approach. It is a system that explains human relationships and our ability to connect with other people in the group. According to LMX theory, every organization has two main groups.
The first team is the one that gets along with the leader. This group usually consists ofemployees with high performance and compliance. These employees are likely to be promoted or given incentives from top management.
The second group consists of people who either disagree with or reject the leader. Usually this grouptend to disturb and discredit the works. Obviously, the second group is less likely to be promoted and may even leave the company.
Now a good leader should try to include everyone in the decision-making process. It is his job to bring the entire board team and make sure they work well together.
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LMX theory works well in a homogeneous organization. With this theory, the manager canidentify supportive or disapproving employeesof their management. It also puts the responsibility on the employees, as they must perform at the level of the company's standards.
With LMX theory, it is also more comfortable for the leader to define what brings the team together. Students can apply this theory to justify a diverse workplace that has people from many cultures and backgrounds.
Adaptive managementis another modern management style that is flexible, informal and easy to implement. Adaptive management takes into account the changing and dynamic nature of the market and tries to adapt the organization accordingly.
Both the manager and the workers must change with the changing times. This includes upskilling, training programs, use of better technology and more. TThe world's political and social scenario also affectsinternal projects and the workplace.
Adaptive management theory helps the manager identify areas for improvement. It is also a useful tool to outline the recurring problems in a company and deal with them rationally.
Adaptive management is great for small and large organizations. It is one of the best ways to deal with recurring problems in a business. The theory works well with all kinds of hierarchies. However, an adaptive leader cannot afford to be complacent about his work
The leader must be strong and dominant enough to impose his will on the workforce. However, the manager's intention must be for the improvement of the company. The more you adapt, the more you navigate obstacles.
Adaptive leadership is also very self-reflective, which creates win-win situations for the leader and the company. It leads to empathy, and brings the whole team closer to a common goal.
Strengths-based managementit depends entirely on the caliber of the leader. It refers to the manager's strategic abilities and his ability to manage the employee. According to this theory,the manager tries to motivate the employee to make a voluntary decisionfor the company.
These strength-based management perspectives must ensure the brand's long-term success. However, you must also ensure the company's short-term or immediate financial stability.
Leaders and executive managers aim to make the workforce flexible. It is quite similar to the adaptive management style, which prepares the company for repeated challenges.
Strategic management is the focus of every company.The manager who follows this leadership style must jugglebetween the organisation's current and future expectations. At some point, you look at the long-term success goals of the business. At the same time, you also ensure a stable cash flow for the project.
It helps the manager and the team to understandthe business environment at micro and macro level. On the one hand, you have to think about the company's internal conditions. The other side is where you look at the political and cultural changes in the market.
Servant leadership theoryit is one that depends on the traditional hierarchy of an organization. But instead of the team serving the captain, the manager works for the team. According to this theory, the manager's primary purpose is to help the company.
It would not be wrong to call servant leadership as a subversion of the present administration. The manager tries to make the workplace more spacious and comfortable. His primary goal is to contribute to the development of the team.
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A serving manager would be appropriate for a large-scale business that has a relatively large employee base.This manager is ideal for the HR director positionas they are constantly thinking about improving the team rather than the organization.
As a serving leader, he is therefore someone who takes a personal interest in the group's well-being. However, the manager cannot afford to have any bias or prejudice against anyone in the company.A servant leader identifies strong and weak membersof the group to bring them together. It strives for a level playing field.
TheThe idea of a good leader has evolved over the years. Social, cultural and economic changes in society affect our understanding of leadership.
Herbert Spencer, English philosopher,introduced the Great Man theory.According to him, great leaders were born and not raised.The Great Man-teoriit assumes that a good leader has some inherent qualities that set him apart from everyone else.
The theory of propertieshe also believed that a good leader is a product of his circumstances. He also said that the actions of a good leader positively affect his environment. However, this theory has little relevance to modern times.
Theory of behaviorand contingency theories were other variations on the earlier conception of leadership. These theories also focused on the character traits of a good leader. Unfortunately, these theories had no scientific support. There is no yardstick to measure how and what exactly makes a good leader.
The students can do thatapply this theory to emphasize the leader's power and superiorityin an organization. You can then go on to justify how modern management is more flexible and decentralized.
What makes a good leader?
good leader,in modern terms, is someone confident but sensitive to people. Communication skills and situational analysis are the two important aspects of any management. By learning about leadership theories, students can understand how the very idea of leaders has changed over time.
In the past, a leader was dominant and authoritative. His position was predetermined and isolated from the group. Now organizations are more flexible in their approach. Start-up companies in particular have an informal, relaxed and decentralized style, where everyone has a say.
In today's business scenario,a good leader must be democratic, emphatic, tolerant and yet affirmingin its decisions.
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Leadership has developed over the years and builds a bridge between the employee and the employer. I hope that students have a better idea about leadership after reading these theories. I have also tried to explain the practical application of these theories using real life scenarios.
Some of the most popular management theories that are applied nowadays are systems theory, contingency theory, Theory X and Theory Y, and the scientific management theory.What are the 5 theories of management? ›
Some of the most popular management theories that are applied nowadays are systems theory, contingency theory, Theory X and Theory Y, and the scientific management theory.What are the five theories of educational management? ›
There are five primary educational learning theories: behaviorism, cognitive, constructivism, humanism, and connectivism. Additional learning theories include transformative, social, and experiential.What management theory is most in practice today? ›
Administrative management theory was developed by Henri Fayol in the early 1900s and is considered to be highly relevant even today.Why are management theories important for students? ›
The Importance of Management Theories
When a management style or theory is implemented, it automatically streamlines the top priorities for the organization. Management theory also allows us to better communicate with people we work with which in turn allows us to work more efficiently.
' Understanding organizations comes from understanding management theory, and Kimani outlines four major management theories for the basis of organizations: bureaucratic theory, scientific management theory, behavioural management theory, and human relations theory.What are the major management theories? ›
- 1) Systems Theory.
- 2) Principles Of Administrative Management.
- 3) Bureaucratic Management.
- 4) Scientific Management.
- 5) Theories X And Y.
- 6) Human Relations Theory.
- 7) Classical Management.
- 8) Contingency Management.
The 5E Model consists of five phases: engagement, exploration, explanation, elaboration, and evaluation.What is the most effective management theory and why? ›
Take scientific management — best known as Taylorism — arguably the most enduring management theory of them all. It suggests that a manager's job is to increase efficiency in a production system. The manager then, rendered in the image of Dr.Who was the best modern management theory? ›
Scientific management theory is sometimes called Taylorism after its founder Frederick Winslow Taylor, a mechanical engineer. Taylor employed scientific methods to develop organizational principles that suited mass production needs.
Henri Fayol's principles of administrative management
Henri Fayol (1841-1925), a French mining engineer and executive, is considered one of the most influential contributors to modern management theory. Unlike Taylor, who improved productivity by analyzing workers' actions, Fayol took a top-down approach.
The five points of importance of management are achieving organization goals, achieving individual goals, creating a dynamic environment, developing society, and improving efficiency.What are management theories in simple words? ›
What are management theories? Management theories are a collection of ideas that recommend general rules for how to manage an organization or business. They address how supervisors implement strategies to accomplish organizational goals and how they motivate employees to perform at their highest ability.What are the 7 theories of management? ›
- Scientific Management Theory.
- Theory of Administrative Management.
- Theory of Bureaucratic Management.
- Theory of Human Relations Management.
- Theory of Systems Management.
- Management Theory X&Y.
- Theory of Contingency Management.
The modern management theory believes that employees work for numerous reasons, including to achieve satisfaction, happiness and desired lifestyles. With this theory, managers understand employees' behaviors and needs and can implement strategies to meet those needs and support their skill development over time.Which management approach is the best? ›
- Democratic Management Style. ...
- Coaching Management Style. ...
- Affiliative Management Style. ...
- Pacesetting Management Style. ...
- Authoritative Management Style. ...
- Coercive Management Style. ...
- Laissez-Faire Management Style. ...
- Persuasive Management Style.
Modern Management Theory is actually comprised of three other management theories — Quantitative Theory, Systems Theory, and Contingency Theory.What are the three basic theory of management? ›
There are three major classifications for management theories: Classical Management Theory, Behavioral Management Theory and Modern Management Theory. These classifications represents a different era in the evolution for management theories. Each of these classifications further contain multiple sub-theories.What are a three types of modern management theories? ›
- Quantitative Theory. ...
- Systems Theory. ...
- Contingency Theory.
1. Behaviorist Learning Theory. Behaviorism is one of the classic learning theories; it predates cognitivism and most of the other theories we'll explore in this post. Behaviorism suggests that the learner is a 'blank slate' and that all human behavior can be caused or explained by external stimuli.
This book examines human learning in the context of four types of research-based learning theories: neurological learning theories, behavioral learning theories, cognitive learning theories, and transformative learning theories.What are the three main learning theories in education? ›
Although there are many different approaches to learning, there are three basic types of learning theory: behaviorist, cognitive constructivist, and social constructivist.What are the 5 principles of learning relevance? ›
- Learning takes Time. It takes time to learn worthwhile academic content. ...
- Learning is Social. Most learning is an interactive endeavor. ...
- Learning is Personal. ...
- Learning is Transferable. ...
- Effort produces Achievement.
After decades of research, cognitive psychologists have identified six strategies with considerable experimental evidence to support their use . These six strategies include spaced practice, interleaving, elaboration, concrete examples, dual coding, and retrieval practice.What are the 7 principles of learning theory? ›
The seven principles of adult learning include self-direction, transformation, experience, mentorship, mental orientation, motivation, and readiness to learn. Adult learning theories can positively impact adult learning experiences both in the classroom and on the job.What are the big 5 classroom management strategies? ›
- Write Down the Rules.
- Let Students Help.
- Encourage Questioning.
- Let Students Lead.
- Encourage Group Projects.
- Develop Effective Working Relationships With Your Students. ...
- Train Your Students on How Learning Takes Place in Your Classroom. ...
- Protect and Leverage Your Time. ...
- Anticipate Your Students' Behaviors in Well-Written Lesson Plans. ...
- Establish Behavioral Standards.
The authoritative approach is the best form of classroom management style because it is the one most closely associated with appropriate student behaviors.What are the application of management theories? ›
It helps us to understand the interactions between the organizations, groups, individuals, large social systems, communities and their environments. It aids us to enhance the understanding of how human behavior functions in a situation. A system is a whole as well as a part at the same time.Why classical management theory is the best? ›
Advantages Of Classical Theory
A hierarchical structure accounts for clearly defined roles and responsibilities within an organization. Better wages and regular incentives make employees feel appreciated and they're likely to work harder at their jobs.
Peter Drucker was a business consultant, lecturer, and author. He is known as the “Father of Modern Management” because of his numerous works and seminars on management theory and practice.What is an example of the system theory of management? ›
The systems approach implies that decisions and actions in one organizational area will affect other areas. For example, if the purchasing department does not acquire the right quantity and quality of inputs, the production department wont be able to do its job.Which is the best system theory for an organization management? ›
Systems theory asserts that open systems are the most common type. This is because you can describe almost anything as a system. For example, a business is an organisational system, but so too is society.
While not typically used in today's workplaces, the classical management theory does have some strong points. They include: A clear structure for management, its functions and operations. The division of labor that can make tasks easier and more efficient to accomplish, which can enhance productivity.Which of the 5 functions of management do you consider leading as the most difficult? ›
Leading. The third managerial function is leading, an activity that is often seen as the most important and challenging of all the managerial functions. In this stage, managers are expected to motivate employees to help them achieve their goals and objectives.What is management 5 marks answer? ›
Management is a set of principles which relate to the various functions such as planning, organizing, staffing, directing, coordinating, controlling etc. which are helpful in achieving organizational goals.What is the most important management? ›
The most important management skill, the survey found, is the ability to build good relationships with people at all levels.What are the 5 dimensions of management? ›
Five Dimensions of Management Responsibility
It is within the five management skills of communication, planning, selling, motivating and measuring that a 5DM manager can apply his or her ability to interact with, or effectively manage, others.
Some of the widely accepted psychological theories are the behavioral theories, the cognitive theories, humanist theories, biological theories, psychodynamic and the social psychology theories.What are the theories of time management for students? ›
Three theories about time and time management stand out from all of the rest, helping people develop stronger skills and prioritize more effectively. The three theories covered here are the Pickle Jar Theory, the Pareto principle, and Parkinson's Law.
Models of Educational Leadership and Management
This work categorises the main theories into six major models: formal, collegial, political, subjective, ambiguity and cultural (see Table 2.1).
Prosci has identified five dimensions of integration for change management and project management: People. Process.What are the 5 important dimensions of job? ›
Hackman and Oldham (1976) identifies that there are five important dimensional characteristics a job called Job CharacteristicModel (JCM). Five dimensions used in this theory include variety skills, task identity, task significance, autonomy and feedback.What are the 5 performance dimensions? ›
The key to having good all-round performance is five performance objectives: quality, speed, dependability, flexibility and cost.What are the 6 learning theories in education? ›
In this article, we describe six popular learning theories, e.g. cognitivism, connectivism, heutagogy, social learning, transformative learning theories and Vygotsky's zone of proximal development (ZPD), and their implications for online instruction.What are the 5 factors of system theories? ›
Systems theory in social work is based on the idea that behavior is influenced by a variety of factors that work together as a system. These factors include family, friends, social settings, economic class, and the environment at home.What are the 4 types of theories? ›
Sociologists (Zetterberg, 1965) refer to at least four types of theory: theory as classical literature in sociology, theory as sociological criticism, taxonomic theory, and scientific theory. These types of theory have at least rough parallels in social education. Some of them might be useful for guiding research.