Unit 526 on Principles of Leadership Practices delves into the essential theories and practical applications of effective leadership within various organisational contexts. By examining key leadership models such as Transformational and Situational Leadership, this unit equips learners with the tools to develop a strategic vision, communicate effectively, and manage change. Through case studies and personal reflection, students analyse real-world examples and assess their leadership style, aiming to enhance their skills and contribute to organisational success. This comprehensive approach fosters a deep understanding of leadership dynamics, preparing individuals to navigate complex challenges and inspire teams.
Contents
UNIT CMI 526. 1
Principles of Leadership practices: 1
LO1 Understand leadership practice in an organisation. 4
Examine leadership practices within organisations (AC1.1). 4
Active hearing. 5
To communicate successfully, a leader must engage in active listening. They must know when to keep silent and when to concentrate on their teammates (Naqshbandi, Tabche and Choudhary, 2019). By doing this, they win the staff`s trust, as a consequence, people are more willing to share their worries, ideas, and other difficulties with the leader. Listening abilities are just as important for good leadership as speaking abilities since they help the leaders comprehend their team more fully. 5
Clearness. 5
A competent communicator uses their words to instruct and engage team members with clarity of idea (Naqshbandi, Tabche and Choudhary, 2019). At the conclusion of each milestone, managers assess if the team was successful in achieving the objectives that were distinctly stated for members of the team to accomplish. Good leaders make goals simpler so that team members can understand them even if they are not met. 5
Allocation. 5
Evaluate the use of TWO (2) theoretical approaches to responsible leadership (AC1.2). 6
Stakeholder theory. 7
Triple Bottom line theory. 8
Analyse the impact of TWO (2) internal and TWO (2) external factors on leadership practice (AC1.3). 9
The business`s culture. 9
Sociological factors. 10
Economic and political factors. 10
Technology. 10
LO2 Understand leadership styles. 11
2.1 Examine the relationship between management and leadership. 11
The concepts of leadership and management. 12
2.2 Evaluate leadership styles – ii. Evaluates THREE (3) leadership styles which can be used in organisations (AC2.2) 14
1- Entrepreneurial Leadership. 15
Abilities in communication. 15
Vision. 15
Enthusiastic. 15
2. Situational Leadership. 16
Transformational leadership: 16
Intellectual stimulation: 17
Personalized consideration: 17
Motivating inspiration: 17
Influence as an ideal: 17
LO3 Understand the impact of leadership within organisations. 18
Report title. 18
‘The impact of leadership within organisations’ 18
Executive Summary. 18
3.1 Evaluate how leadership supports the achievement of organisational objectives. 18
Support of Leadership in achievement of organisational objectives: 18
1. By setting clear vision and communicating it. 19
2. Engaging others. 19
3. Managing and leading change. 19
4. Individual/ team development and performance by inspiring others. 20
3.2 Analyse the concept of empowerment and trust in leading others. 20
Empowerment in leading others. 21
Trust in leading others. 22
3.3 Examine techniques for creating a cohesive team.. 22
Provide development and training. 23
To promote teamwork. 23
Build faith. 23
3.4 Assess the need to adapt leadership approaches to meet changing needs. 24
Adapt to varying demands. 25
Shift in favour of improved performance. 25
References. 26
LO1 Understand leadership practice in an organisation
Examine leadership practices within organisations (AC1.1)
* It is preferable to use a non-real example here, such as: 1- Head of a department (recruitment, audit, contracts, finance…) in a health organization or 2- Head of a unit (contracts, financial, planning…) in a social organization that provides social services or 3- Head of a unit (sales, marketing…) in a cyber company.
* The example is used to make the comparison with Examine leadership practices
1- The differing roles and responsibilities of leaders
Adair`s Action-Centred Leadership model
2- Distributed leadership practices
The Eight Hallmarks of Distributed Leadership (Dean, 2007)
3- Effective leadership practices
Effective Leadership Practices -Kouzes and Posner (1987)
* Please visit this website for more information https://www.managers.org.uk/
A leadership practice is any action that provides guidance to a team or an organisation.
Active hearing
To communicate successfully, a leader must engage in active listening. They must know when to keep silent and when to concentrate on their teammates (Naqshbandi, Tabche and Choudhary, 2019). By doing this, they win the staff`s trust, as a consequence, people are more willing to share their worries, ideas, and other difficulties with the leader. Listening abilities are just as important for good leadership as speaking abilities since they help the leaders comprehend their team more fully.
Clearness
A competent communicator uses their words to instruct and engage team members with clarity of idea (Naqshbandi, Tabche and Choudhary, 2019). At the conclusion of each milestone, managers assess if the team was successful in achieving the objectives that were distinctly stated for members of the team to accomplish. Good leaders make goals simpler so that team members can understand them even if they are not met.
Allocation
More than merely assigning tasks to different people is involved in delegation of authority. Delegating responsibility, accountability, and decision-making are truly involved. Delegation is part of shared authority (Podsakoff and Podsakoff, 2019). Delegation of authority has the added benefit of enabling more employees to assume accountability for their own job and actions. It takes less time and effort to monitor and micromanage skilled and competent employees. The staff members become more skilled and capable of producing improved performance as a result.
Any organisation has persons in positions of power who make choices that have an impact on the entire business. These people are referred to as leaders, and the effectiveness of their leadership techniques is crucial in determining the organization`s overall performance (Qing et al., 2019). Although there is no one set method for effective leadership, there are some techniques that frequently work. They include establishing specific objectives, speaking clearly, establishing trust, distributing responsibilities, and giving feedback. Leaders are more likely to guide their organisations towards success when they incorporate these techniques into their decision-making.
Evaluate the use of TWO (2) theoretical approaches to responsible leadership (AC1.2)
* It is important to use two of these: 1- Abraham Maslow Hierarchy of Needs 2- Leading with Trust; the ABCD Trust Model (Blanchard, 2010) 3– Merton’s role theory (1957) 4- Early Theory: Mintzberg’s Management Roles (1975) 5- Responsible Leadership (Maak and Pless, 2006) 6- Ethical Leadership -Kohlberg’s Six Stage Developmental Model 6- Value Based Leadership -the Seven Levels of Consciousness
Several distinct hypotheses have been put up to explain the idea of responsible leadership. Another stakeholder idea, a popular theory, asserts that leaders must the interests of everyone whose lives their decisions will effect.
Stakeholder theory
A theory of capitalism called “Stakeholder Theory” places emphasis on the interrelated interactions between a company and its clients, While a business may succeed in the near term by concentrating just on earnings, according to this ethical philosophy, it`s essential that to recognise that all parties who have an interest or worry in the long-term success of the company, including its stakeholders term (Qing et al., 2019).
This method explores stakeholder relevance or the significance of each stakeholder to an organisation. This strategy acknowledges every stakeholder group has interests of its own that impact the business in several ways, and the business must establish a just method to balance the each group`s interests (Rao Jada, Mukhopadhyay and Titiyal, 2019). This strategy makes the appropriate decision using data. To meet the business`s financial objectives, use stakeholder management. Both of them have advantages, yet techniques, but they also have drawbacks. As an illustration, social responsibility suppliers, staff members, investors, communities, and other stakeholders with an interest in the organisation. The philosophy contends that a company should produce value for everyone stakeholders and not only investors. According to stakeholder theory, a social contract exists between every industry and social group.
In the end of the day, no single theoretical framework can offer a complete justification for ethical leadership. Instead, it is crucial (Rao Jada, Mukhopadhyay and Titiyal, 2019). Leaders should be cognizant of the various theories that are available and critically identify their practical applicability, one the principle of social responsibility is frequently discussed and contends that have a responsibility to act in ways that benefit society as a whole. The triple bottom line in economics
Triple Bottom line theory
In keeping with the triple bottom line (TBL), entrepreneurs should promise to give social and environmental concerns the same amount of attention as they do to profits. Three bottom lines—profit, people, and the environment—are advocated by the Triple Bottom Line (TBL) theory (Suifan et al., 2020). A TBL seeks to assess the amount of environmental effect and CSR commitment of an organisation. The majority of the time, when we discuss a company`s bottom line, we`re discussing its profitability. Elkington`s TBL framework encourages owners to take into account issues other than financial returns, like social and environmental concerns, to estimate the total cost of doing business, so supporting the objective of long-term sustainability in business operations. Owners should focus on society and the environment just as much as they do on financial goals, according to the triple-bottom-line approach (Suifan et al., 2020). According to TBL theory, if a firm only takes into account its financial performance while disregarding its social contacts, it will not be able to see the whole picture and will not be able to accurately account for the expenses of doing business.
The Three Ps of the Triple Bottom Line
The three bottom lines should be prioritised simultaneously by organisations, according to the TBL concept:
Profit: The typical method used to determine a company`s profit is the profit and loss (P&L) statement. Chang, Wang, and Wang 2019
The social responsibility of a corporation is evaluated over time using this metric on its employees.
Planet: This assesses how ecologically conscientious a company has been.
Analyse the impact of TWO (2) internal and TWO (2) external factors on leadership practice (AC1.3)
As a result, the efficiency of the organisation in achieving its goals is increased. Leaders have the ability to influence and guide people who report to them. Leadership philosophies are influenced by a variety of factors, including the technological environment, organisational culture, personnel characteristics, resources, economic and political factors, and demography.
The business`s culture
An organization`s culture is influenced by its founders, current and former executives, history, and crises. Culture is difficult to alter because it results from established knowledge and formal processes, traditions, ceremonies, and norms that represent the organization`s self-image and expectations of its members. (Wang, Wang and Chang, 2019). Corporate standards, such as a worker`s ability to keep good standing and respond appropriately to various situations, are affected by set rites, such as ceremonies, routines, and a set way of doing things.
Sociological factors
Leaders must be aware of the racial and ethnic diversity, cultural customs, and market trends of the organization`s clientele in order to tailor products and services for certain groups (Werdhiastutie, Suhariadi and Partiwi, 2020).
Economic and political factors
Leaders need to familiarise themselves with their suppliers, customers, and competitors in order to comprehend how economic and modern political forces affect the marketplace. These components impact how leaders accomplish their goals. (Werdhiastutie, Suhariadi and Partiwi, 2020).
Technology
The corporate landscape could significantly change overnight because to technology. Leaders must alter their management strategies to support the technological revolution of the firm. With the use of research and development, leaders can create original, innovative approaches that improve operations.
The personality of the leader, including his abilities, values, beliefs, vision, proclivities, desires, and aspirations, affect how he interacts with his employees. If he values his employees, takes into account their emotions, and has faith in them, he is more likely to govern in a democratic manner.
As some subordinates may have a tendency to be independent, while others may rely on others or hesitate to make decisions, as well as differences in their level of responsibility, factors relating to the subordinates and their abilities to deal with situations and make administrative decisions may differ from one another (Werdhiastutie, Suhariadi and Partiwi, 2020). Every organisation or workplace has unique objectives, cultures, expectations, and environments. The choice on a management style is influenced by these influences. Internal elements are those that the leader has control over, such as their character, conduct, and management style. On the other side, external factors are those that a leader cannot influence, such as the political climate, the economy, and societal trends.
Leadership practises can be significantly impacted by both internal and external factors (Naqshbandi, Tabche and Choudhary, 2019). For instance, a leader`s personality may affect how they interact and develop connections with their team, while external variables like the state of the economy may have an impact on the resources they have at their disposal.
LO2 Understand leadership styles
2.1 Examine the relationship between management and leadership
The efficient use of all assets, including people, is what management is all about. Whereas effective leadership focuses on inspiring others to work at their highest potential in order to achieve a goal. It entails generating and articulating a future vision, inspiring people, and winning their support. These definitions make note of the various distinctions between managing and leading people in our organisation. As because of relocation there will be recruitment and selection of new staff, and to make it able for new staff to be in time for attaining the challenging targets of company, an effective leadership will be needed. People typically think of management as being all about organising, leading, planning, and controlling, whereas leadership is more concerned with traits like inspiration, creativity, and cooperation to achieve the intended results (Ali, Wang and Johnson, 2020).
The concepts of leadership and management
While they are distinct from individuals who develop products and provide services, managers are crucial members of any team or organisation (Ali, Wang and Johnson, 2020). Also, they assist others in carrying out vital tasks and develop and provide services, making them valuable individuals. Making decisions and distributing resources, especially human resources, are concerns of management. Analysis and computation are frequently required based on data and reports. So in our case management plays a vital role in all the departments to meet new operational targets within three month to move.
Management is the process done which a discrete motivates others to achieve a goal or set of objectives and guides the organisation that makes it more integrated and coherent (Ayu Nani and Dina Safitri, 2021). By a combination of education, experience, and training, good leaders are emerging. The leaders who can be influenced by their traits or attributes, such as value systems, belief, ethics, and characters, have good leadership skill.
There are some things that leaders in our organisation should be mindful of when trying to encourage new hires working under open elevations of teamwork, such as the fact that these do not happen naturally but are obtained through constant work practices (Ayu Nani and Dina Safitri, 2021). Therefore, effective leaders are always working and learning to develop their leadership skills.
A leader`s vision can be enhanced in three different ways. Before communicating it to the organisation, the leader must first develop a personal vision. Because it depends on a leader`s aptitude and abilities to present the vision to the group before persuading each individual to embrace it (Bhaduri, 2019). Second, consulting should be hired in order to establish an unambiguous vision regarding leading team members to be effective in their role. Gathering the senior management is the third step in developing a vision for meeting the functional targets within the three months of move.
A clear vision must be conveyed through effective communication, which includes both verbal and nonverbal cues. An organization`s managers are a crucial part of its everyday operations (Bhaduri, 2019). Most people believe that managers are primarily in charge of employing other people to accomplish goals. In order to ensure that the task is accomplished, the manager must either exercise direct supervision or work in conjunction with team members. A “manager” is a person who collaborates with a variety of groups and people inside an organisation.
In some job names, the term “manager” may be used interchangeably with “personal manager,” “front line manager,” or “brand manager,” while in others, it is not used at all. Typically, managers lead an organisation on behalf of its owners (Ellinger and Ellinger, 2020). They are accountable for the organization`s duties and operations for both directors and shareholders. They frequently observe the administration`s goals to make sure that the company achieves its goals while handling other employees to guarantee that the company`s values are upheld in its interactions with other businesses, clients, and workers.
2.2 Evaluate leadership styles – ii. Evaluates THREE (3) leadership styles which can be used in organisations (AC2.2)
The strategy a leader employs to assist their team in achieving its objective that in this case is meeting the operational needs by three months of move by motivating team members to collaborate and placing a priority on their welfare is referred to as their leadership style (Ellinger and Ellinger, 2020). It`s crucial to know the leadership style for a team to work efficiently, develop, and embrace change. Among the several leadership philosophies are:
1- Entrepreneurial Leadership
The entrepreneurial mind-set places more emphasis on risk than the standard corporate perspective does on systems and processes. The following are a few typical traits of an entrepreneurial leader.
Abilities in communication
The plan to accomplish shared objectives in this case is that in this case is meeting the operational needs by three months of move only able to be articulated by the leader. Across departments and at different levels, they promote communication. They stay away from vagueness and generalisations and are able to prevent misunderstandings that could lead to conflict.
Vision
A vision that is clear is the hallmark of an effective business leader. His destination and route there are both crystal clear to him. They collaborate with the team to make their vision a reality by sharing it with them.
Enthusiastic
An entrepreneurial leader understands the value of initiative and responsiveness and makes every effort to give the team the support they need to succeed in effective in their roles. When a calculated gamble backfires, the boss typically does not discipline the team. Instead, they discuss what went wrong with workers and work together to fix the problems (Han, Harold and Cheong, 2019).
2. Situational Leadership
Situational leadership refers to tailoring the management approach to each particular task or situation in order to satisfy the requirements of the squad or individual team members so that they can meet new operational targets within three months. Situational leadership refers to tailoring the management approach to each particular task or situation in order to satisfy the requirements of the squad or individual team members. Leaders who use Situational Leadership can more easily adapt to the people they lead as well as their working environments. Every aspiring leader needs to develop the critical skill of being able to change their leadership style. The Situational Leadership approach takes into account a worker`s Performance Readiness level, which is their aptitude and readiness to carry out a particular task (Han, Harold and Cheong, 2019). They can differ based on various performance metrics and problems. The quantity of guidance and assistance needed from the leader is also taken into account. Its adaptability enables leaders to respond to each circumstance with a leadership approach that will empower their staff and foster the best in them. In our case situational leadership is effective hence it can see need of every new hire so that they can achieve challenging targets.
Transformational leadership:
Following are the aspects of transformational leadership:
Intellectual stimulation:
Transformative leaders question the status quo while simultaneously inspiring followers` inventiveness. The leader inspires people to look into original approaches to problems and fresh chances to learn so that they can meet new operational targets within 3 months of the move (Hajiali et al., 2022)..
Personalised consideration:
Transformational leader also entails assisting and motivating followers on an individual basis. Transformative leaders maintain open lines of communication so that followers can freely exchange ideas and so that managers quickly acknowledge the distinctive contributions of each follow in order to develop supportive connections.
Motivating inspiration:
Transformative leaders have a distinct vision they`re able to communicate to followers. In order to achieve these objectives, these leaders can also inspire and motivate their followers.
Influence as an ideal:
The transformative leader serves as an example for followers. Because they admire and trust the leader, followers tend to imitate them and internalise their values (Hajiali et al., 2022).
LO3 Understand the impact of leadership within organisations
Report title
‘The impact of leadership within organisations’
Executive Summary
This report relies on a medium-sized company that is relocating to a new business park as a result of seeing a rise in sales. There are open positions within the company because some workers are moving with the business while others are not. The goal of the organization, which is recruiting and choosing new employees, is for each section to achieve its new operational goal within three months of the move. This study discusses the role that leadership can play in advancing organisational goals. Additionally, the concepts of empowerment and confidence in guiding others are examined. Also written are three methods for creating a strong squad. Additionally, the requirements to modify leadership strategies to satisfy the evolving needs are discussed.
3.1 Evaluate how leadership supports the achievement of organisational objectives
Support of Leadership in achievement of organisational objectives:
Leadership is significant for the accomplishments of aims in an organisation as it gives guidance, meaning, and assist other to understand the long-term policies and aims of an organisation (Jung, Kang and Choi, 2020).
1. By setting clear vision and communicating it
A clear vision of the things that the group is able of doing is established by effective leadership. The leader offers a plan outlining the resources and actions that all the departments must take so that they can attain targets within months of the move. The leaders convey to the workforce the company`s objective and vision. As a result, everyone has direction and can more easily select the professions that best match their histories and technical skills (Jung, Kang and Choi, 2020). By talking openly with them, leaders inspire their teams to take action and accomplish their objective of being effective.
2. Engaging others
The enthusiasm of leaders for their vision and for attaining their objectives motivates followers. Effective leadership inspires individuals to support the objectives of all the departments to meet new operational targets, which provides a strong incentive for everyone to remain to be dedicated to their tasks. Engaging others also indicates that engaging others while making the decisions for organisation. Making decisions is one of the best leadership skills. The best decision for the organisation is always made by effective leadership (Kim and Beehr, 2019). The finest decisions can be made by leaders based on the current circumstances that in our case are the relocate. They take into account the advantages and disadvantages of their organisation in order to make choices that will benefit it now and in the future.
3. Managing and leading change
After their teams have learnt how to execute tasks so that can meet new operational targets within 3 months of the move, effective leaders closely monitor their employees` tasks to guarantee that they fulfil their duties (Kim and Beehr, 2019). Leaders must make sure that employees` efforts are consistent with business goals in order to boost productivity. Successful leaders are dedicated to the growth of their business and its personnel. They don`t let brief setbacks sap their motivation because they stay focused on the long-term objectives of the organisation (Kundu, Kumar and Gahlawat, 2019). When faced with a challenge, effective leaders inspire their teams and aid them in looking past the issues standing in the way of achieving the shared objective.
4. Individual/ team development and performance by inspiring others
Leaders inspire followers to succeed at business and in all parts of life by exhibiting confidence in their abilities. They listen to the issues that staff members have with their work, provide supportive feedback, and ensure that the work environment brings out the best in them. Effective leadership is a key component of organisational ethics education. In spite of hurdles that are coming with relocate, effective leaders take the necessary steps to complete their tasks. Integrity, honesty, and fairness are highly valued by them in their dealings with clients and suppliers. Leadership boosts morale through gaining the respect of the employees. They feel more confident in their ability to fulfil the organization`s goal and mission knowing that their leader believes in them. Because of high morale, employees are more driven to work towards accomplishing company goals and are less easily distracted.
3.2 Analyse the concept of empowerment and trust in leading others
Empowerment in leading others
Empowerment increases the team`s sense of value as a whole and increases their commitment to the business by including them in decision-making and providing them active responsibilities that take advantage of their skills and knowledge in this situation of relocate. A leader who empowers their team members also demonstrates that they respect their input and are good listeners (Kundu, Kumar and Gahlawat, 2019). By empowering their team, they are inspired to “row together,” which improves the effectiveness of their goal of meeting new operational targets within three months of move as a whole. Developing others` confidence in their capacity to carry out one‘s common objectives and goals helps build crucial organisational trust and creates the backup leadership that is necessary if the primary leadership is unable to be present for crucial decisions that will determine the organization`s future.
Trust in leading others
“Trust means being unaffected by uncertainty” People are unable to operate at their best in the workplace if they have any questions about , the plan or future profitability of the business, or, most importantly, their own ability to satisfy the demands placed on it (Lean et al., 2019). This is especially true in today`s uncertain, complex, and change-filled environment, when employees are being pushed to accomplish more with less resources. For instance in our case it is necessary for leader of organisation to develop trust in their employee regarding the decision of relocating also motivating them so that they can effectively lead.
Mutual trust in leadership is built over time. For followers to appreciate a leader, they must see that the leader has faith in them on attain new operational targets. These relationships help teams and organisations gradually develop and sustain the trust necessary to in relocation circumstances. Effective leadership requires the ability to establish and uphold trust with people, in groups, or elsewhere.
3.3 Examine techniques for creating a cohesive team
Team cohesion develops when a group of individuals feel inspired to work towards a common goal and linked to one another in our case it is the goal for all departments to meet new operational targets within 3 months of the move. Team cohesion requires members to feel as though they have truly contributed to the group`s success and to stick together throughout a single project (Lean et al., 2019). It goes beyond basic deference between group members. Also, they are confident in one another`s capacity to provide a hand, make an equal contribution, and work as a unit.
Decide on some goals and ideals.
When examining the dynamics of the present team, it`s critical to keep the company`s objectives and core values in mind in our case it is very transparent that company leaders wants to meet the targets within three months of move. These four things will help business staff appreciate what they`re occupied towards, how they`re working in the direction of it, and why.
Provide development and training
Each person on the team should believe they are accomplished of subsidising to the team goal in the first place if the leader wants the team cohesion to remain strong (Naqshbandi, Tabche and Choudhary, 2019). One should assign their new hires specific job responsibilities that define their location on the side as well as adequate exercise to assurance they can transport out their responsibilities effectively
To promote teamwork
One of the most important aspects of connecting people is raising people`s self-esteem and morale as individuals, not simply as professionals (who spend 40 hours or more together each week). To cultivate the empathy and respect that a good team needs to function, vital for the organization exercises can be a great strategy. As employees of a company interact and get to know one another outside of the workplace, team cohesion will increase.
Build faith
Once avenues for it are established, all team members must feel comfortable speaking openly with one another. This should go beyond simply talking about tasks and how to complete them. Whether interacting with management, a direct boss, or a coworker, they shouldn`t be shy to express their ideas To build trust; one must act as a role model and be approachable. When there is a lack of openness, teams begin to experience a buildup of small errors, conflict, and a combative climate. (Naqshbandi, Tabche and Choudhary, 2019). Even accidentally concealing information at the managerial level will prevent team cohesion. One must successfully explain their ideas and any modifications as a manager. Afterward, show gratitude when team members add their own.
