Application Of Leadership And Management Theories In Nissan Motor Corporation Case Study

Leadership Theories and Carlos Ghosn

Leadership is the core ability of any individual for leading or guiding any other individual, team or entire organization (Antonakis and House 2013). It is a significant process of social influence, where any individual could easily register the support as well as maintenance of any other people for the successful completion of a distinctive common task. Various traits are involved in leadership like power, values, vision, intelligence, function, behaviour, charisma and many more (Parris and Peachey 2013). The major leadership skills are communication, awareness, honesty or integrity, innovation, development of leadership skills and relationship building. There are few important types of leadership and amongst them, the most effective are autocratic as well as authoritarian leadership, democratic leadership as well as participative leadership, the LP or Laissez faire leadership as well as free rein leadership and finally paternalistic leadership (Antonakis and House 2014). These behavioural theories of leadership provide different perspectives to the individuals for leading efficient leadership.

Management theories, on the other hand, are the set of generalized rules, which provide guidance to the organizational managers for managing the company (Hill, Jones and Schilling 2014). These theories are proper explanations for assisting the employees in effectively relating to the business related goals and objectives and then implementing effective means for achieving the same. There are four general management theories that are broadly used by various organizations and managers and these are Theory of Scientific Management, Administrative Management Theory, Bureaucratic Theory of Management and Behavioural Theory of Management or Hawthorne Effect. These above mentioned four theories are considered as the most effective and significant theories to solve any type of managerial issue in the company (Avolio and Yammarino 2013). The overall productivity of the organization is increased and the entire process of decision making is simplified for all managers. Moreover, such theories encourage staff participation and hence job satisfaction is enhanced majorly.

The following report outlines a brief discussion on the application of leadership theories to a leader and management theories to one of the most popular and significant car manufacturing company, known as Nissan Motor Corporation. It was founded in December 1933 and the headquarters are in Nishi-ku, Yohohama, Japan (Nissan-Global.com. 2019). The company is responsible for selling its cars under the brands of Datsun, Infiniti and Nissan. They labelled their in house performance tuning product and service as Nismo. As for 2013, Nissan Motor Corporation was on the sixth position in respect to the largest automakers within the entire automobile industry, after Volkswagen Group, Ford, Toyota, General Motors and even Hyundai Motor Group. This report will focus on Carlos Ghosn as the leader for leadership theories. He was the chairman and CEO of Nissan during the early 2000s, when Nissan was going through major turmoil. With his leadership skills, Carlos Ghosn was able to turn the fortune of Nissan (Nissan-Global.com. 2019). This report will further demonstrate about the application of leadership and management theories in this organization of Nissan with relevant details.

Trait Theory

Leadership theories help and allow authorized leaders in standing apart and becoming more efficient in comparison to others. A proper leadership is responsible for providing guidance to a particular group of individuals or the entire organization. It is the state or position of being a leader (Van Wart 2013). Leadership is the subsequent capability of leading few other individuals for working collaboratively. Decisions are undertaken easily and promptly with the help of such leadership theories and hence a clearer vision is articulated to each and every employee of the company. Moreover, achievable goals are established and are achieved in an effective manner. Carlos Ghosn was the chairman and CEO of Nissan Motor Corporation from 2009 to 2017 (Nissan-Global.com. 2019). He is considered as one of the most successful and significant leaders and chairmen, Nissan ever had. He is termed as “Le Cost Killer”, since he was able to reduce the vehicle conception costs and accelerate such conceptions. In the year of 1999, Nissan was near bankruptcy, due to lack of suitable leaders in their company. However, with the effective leadership of Carlos Ghosn, the organization was able to remove all charges as he orchestrated one of the company’s most aggressive downsizing campaigns.

There are some of the most popular and suitable leadership theories that could describe the leadership of Carlos Ghosn. They are as follows:

1. i) Great Man Theory: The first and the foremost leadership theory that is suitable to Ghosn is Great Man Theory (Tourish 2014). As per this particular theory, each and every trait of leadership is intrinsic and it refers to the fact that greater leaders are born and they are not created or made. This specific theory overlooks each and every greater leader as individuals, who are bound for becoming leaders with their in built traits. Great man theory is also termed as the theory that affirms the heroes by simply checking the product of their times as well as their actions for the outcomes regarding social conditions (Bolman and Deal 2017). This specific theory is for the extremely influential persons, who due to their personal wisdom, intelligence and charisma as well as political skill that us being utilized in such a manner, which comprises of a decisive historical impact. Great men are the products of their societies and that the actions will be absolutely impossible without any social condition built before the life time.

Carlos Ghosn has worked in several distinctive organizations and in every organization, he was able to show his leadership skills (Price and Weiss 2013). With the help of such efficient knowledge in management and leadership skills, Carlos did not face any issue while dealing with the problems in Nisan Motor Corporation. Carlos Ghosn, being one of the greatest and the most significant leaders in the entire world, even comprises of some of the major and important leadership skills and amongst them, great man theory is one of them (Breevaart et al. 2014). He had the inborn quality of leadership and hence he possesses the required attribute to find himself in the most surprisingly complicated subject only after influencing how a successful leader can achieve their goals and objectives.

1. ii) Trait Theory: The second important and significant theory of leadership that is quite popular for leaders in the entire world is trait theory (Cameron et al. 2014). This particular theory is an approach for studying respective human philosophy. The trait theorists are majorly interested in the proper measurement of attributes that could be described as several habitual patterns of emotion, thought and behaviour. As per this specific perspective, the traits are the characteristics of personality, which are relatively stable on time and differ across several individuals (Chemers 2014). Moreover, these characteristics are absolutely consistent over different situations and even for influencing behaviour. Such traits are in distinctive contrast to states that are more transitory depositions.

The several characteristics that are required for becoming a great leader eventually suggest that leadership is previously destined within impossible situations (Ciulla 2014). The leadership traits are as follows:

1. a) Intelligence as well as Action Oriented Judgment: The first and the foremost leadership skill for trait theory is intelligence as well as action oriented judgment. These types of leaders are smart and hence they make choices, which could move the entire group forward for subsequently maintaining efficiency in the business.
2. b) Eagerness in Accepting Responsibilities: The second distinctive and subsequent leadership trait that would be effective and important for any leader is eagerness in accepting various responsibilities (Clinton 2018). The strong leaders eventually under take the core responsibility and does not pass any type of defeat blame on his or her team members. He is responsible for standing by the success of the team and also for taking ownership for the challenges in the team.
3. c) Task Competency: Another significant and important leadership trait, which is extremely vital and significant for all leaders would be task competency. A great leader is both skilled and has the capability of solving their problems (Mendenhall et al. 2017). The team members have the ability of looking for the leader for getting things done in a better manner.
4. d) Understanding the Followers as well as their Needs: It is yet another noteworthy and vital trait of leadership for all leaders is the proper understanding of followers and their subsequent requirements (Robertson 2016). The efficient leaders also pay extra attention to the group or organizational members and they eventually take care to help the members for achieving success. These leaders also want every person in the team to become successful and also for contributing majorly in the team.
5. e) People Skills: People skill is yet another significant leadership trait that is required to be present within each and every leader (Sanders 2017). The excellent leadership skills are extremely important to lead the team properly.
6. f) Requirement for Achievements: The stronger leaders comprises of the requirement for succeeding and then helping the group for the proper achievement of goals and objectives (Shapiro and Stefkovich 2016). These leaders care for the group success and are committed in helping the entire group to reach out to the milestones.
7. g) Capacity in Motivating People: The core capacity in motivating the people should be present in the leaders and hence it is vital identify the aspects for how to inspire others as well as motivate team members in doing their best.
8. h) Courage and Resolution: The next significant and important trait of a good leader is courage as well as resolution (Terry 2015). The most significant leaders are both committed and brave for fulfilling the respective objectives of that team.
9. i) Perseverance: The stronger leaders eventually stick to the challenges or issues even when few things get much difficult and the group eventually faces various subsequent obstacles.
10. j) MajorTrustworthiness: It is yet another important trait of leadership (Wang, Waldman and Zhang 2014). The most effective leaders should have trust on their team members so that it is easy to execute the objectives without much issue.
11. k) Presence ofSelf Confidence: Most of the group or team leaders are highly self assured and since they are extremely confident within themselves, their followers often start to share their respective self belief with his or her team members (Gerald and Phil. 2014).
12. l) Adaptability and Flexibility: The most efficient leaders do not get stuck within a rut. They have the ability for thinking outside the box and adapting quickly for altering situations (Schedlitzki and Edwards 2014).
13. m) Assertiveness: The leader should have the ability for being directive and being assertive without even maintenance of any kind of aggressiveness (Sosik and Jung 2018).
14. n) Emotional Stability: For being dependable, the strong leaders have the ability for controlling the emotions and also avoiding over reactions.

The above mentioned fourteen leadership traits are extremely important and significant to become an effective and efficient leader with trait theories (Nanjundeswaraswamy and Swamy 2014). Carlos Ghosn had to deal with some of the most significant and important challenges while working in Nissan car manufacturing company. The company was going through major losses and hence it was required to maintain efficiency in business. However, with these mentioned traits, it was quite easier to deal with these challenges and Carlos was able to bring major success in the company and also to bring the company in one of the top positions (Liden et al. 2014).

Behavioural Theory

iii) Behavioural Theory: The next important and significant leadership theory that is important for leaders is behavioural theory (Hoch and Kozlowski 2014). It is also termed as behaviourism and it is the core theory of learning on the basis of ideas that each and every behaviour is being acquired through conditioning. This conditioning occurs through proper interaction with the subsequent environment. The behavioural theory of leadership is being classified as it focuses on the study of specified behaviours of the leader (Glatthorn et al. 2018). For the behavioural theorists, the leadership behaviour would be the most significant analyst of his or her leadership for influencing and hence as a major outcome, it is considered as the most significant determinant for success of leadership. This particular behavioural focused approach of leadership that gives real marketing potentials as the behaviour could be eventually accustomed within such a way that anyone could comprise of the specified responses to stimuli (Dinh et al. 2014). The task oriented leaders are eventually focusing on the behaviours within the organizational structure and they even like to keep proper control.

Carlos Ghosn was the CEO and Chairman of the Renault Nissan Mitsubishi Alliance. These three is the strategic partnership within each and every automotive manufacturer through the most complicated and cross shareholding agreements. In the year of 1999, Nissan nearly faced bankruptcy and was hence facing subsequent losses in their business (Gurdjian, Halbeisen and Lane 2014). For the purpose of resolving each and every challenge faced here, Ghosn used his significant leadership skills and hence was successful in resolving them effectively and efficiently. After resolving these issues, he was named as Mr Fix It.

1. iv) Contingency Theories: The other significant and noteworthy leadership theories are termed as contingency theories of leadership. According to these specific theories, the respective efficiency of any leader is contingent on the process of any leadership style is marching to the situation (Day et al. 2014). This leader will find out the type of leadership style as well as situation, in which he or she is thriving in. The various contingency theories are as follows:
2. a) Fiedler’s Contingency Theory: As per this theory, an effective leadership is dependent not only over the leading style, but also over the overall control over the distinctive situation. It requires for being a good leader member relations and the tasks should be done with clearer goals (Northouse 2017). Before joining Nissan, Carlos has worked with other popular organizations and hence he was able to deal with the issues faced in the company.
3. b) Cognitive Resource Theory: As per this theory, the several stress sources are blocking the utilization of rationality within leadership (Rosenbach 2018). Although, Nissan was going through major crisis and bankruptcy, Carlos was able to solve them without getting stressed and hence he is termed as one of the most efficient leaders, Nissan could ever have.   
4. v) Transactional Theory: The transactional theory is characterized by the transaction made between the followers and leader (Shamir and Eilam-Shamir 2018). This theory has a positive and mutually beneficial relationship. The transactional leaders are the most efficient and effective whenever they are developing the mutual reinforcing environment for syncing organizational goals and individual. These transactional theorists majorly state that the human beings in general are subsequently seeking for maximizing the most effective experiences and also for reducing un-pleasurable experience (Spears and Lawrence 2016). The leader member exchange theory or LMX theory is one of the major and significant associated theory of transactional leadership theory.
5. vi) Transformational Theory: The transformational theory states that this is the process by which any individual can interact with others and has the ability for creating a major relationship resulting in the higher trust percentage and hence there is an increase in motivation for both intrinsic and extrinsic for both follower and leader (Antonakis and House 2014). The rules and regulations are flexible and are guided by the group principles. Carlos Ghosn in have brought positive changes in the organization of Nissan and hence have achieved the end goal to develop followers into leaders. He have even used four distinctive elements of the transformational leadership of individualized considerations, intellectual stimulations, and inspirational motivation as well as idealized influences. The respective job performances of the followers in Nissan through a wide variety of mechanism after inclusion of linking to the specific sense of identity or even sense of self to the follower (Schmidt 2014). This is required for inspiring them and also for raising the interests within project and hence challenging these followers in taking better ownership for the work. This extremely effective for alignment of followers to enhance the performances.

The management theories that are effective for the organization of Nissan Motor Corporation are as follows:

1. i) Frederick Taylor’s Scientific Management: The first and the foremost management theory for Nissan case study is Frederick Taylor’s Scientific Management (Roueche, Baker III and Rose 2014). As per this particular theory of management, specialization and standardization are required to be managed by proper suggestion to the fact that work place tasks could be properly broken down into a wider sequence of small steps. All of these scientific management principles hence suggest that this particular scientific method for being utilized to effectively govern the most effective method and performing a task within the work place and for relying on the judgment as well as personal discretion of the workers (Priest and Gass 2017). The work place efficiency is being achieved only after finding out an optimal way to complete the task.
2. ii) Henry Fayol’s Principles of Administrative Management: As per McCleskey 2014, the second important and significant management theory that is suitable for the case study of Nissan Motor Corporation is Henry Fayol’s Principles of Administrative Management. Henry Fayol selected a top down approach for resolving the issues of organizational management. He has examined an organization through the lens of managers as well as situations in which they are encountering. He had believed that the management has six specific functionalities of forecasting, planning, organizing, commanding, coordinating and finally controlling. Nissan has effectively followed the fourteen comprehensive principles of Fayol, however still they have faced few challenges in the business (Komives and Wagner 2016). This was majorly because of the fact that Nissan did not have proper management in their business previously and hence it was extremely problematic for them to deal with the existing issues.

iii) Max Weber’s Bureaucratic Management: Heifetz and Linsky 2017 stated that, this is yet another significant and important management theory that is suitable for describing Nissan Motor Corporation case study. As per the bureaucratic management theory, the structuring of organizations within a hierarchical fashion should be focused with clearer rules of governance (Grint et al. 2016). The principles of Weber to create a specific bureaucratic system like a clearer labour division, separation within organizational and personal owner assets, hierarchical command chain as well as selection and promotion of the employees on the basis of personalities and qualifications. It is the most efficient and rational way to establish the organizations (Daft 2014). The approach of bureaucracy management is often perceived as the proper establishment of processes and standards. In Nissan, the principles of Weber were not followed for the successful maintenance of an ideal bureaucratic system.

1. iv) Elton Mayo’s Human Relations Theory: As per this particular theory, the employees are being motivated far more by several relational factors like providing attention than by the monetary reward and environmental factor. It is important to work on the recognition of social as well as psychological factors for successful creation of productive organizations (Renz 2016). The people oriented management approach needs the managers for acknowledging the subsequent complexity of human nature or the values of social ties within work place. Nissan Motor Corporation has not involved human relations theory within their business and hence they were facing some of the major challenges. The team effectiveness was hence absent in their management (Tannenbaum and Schmidt 2017). This was mainly because of lack of team management within the company and thus the employees were not motivated.
2. v) Theory X and Theory Y: As per Hill, Jones and Schilling 2014, another significant theory of management that is extremely popular and significant for the organization of Nissan Motor Corporation. Theory X is termed as the positive theory and theory Y is termed as a negative theory (Tschannen-Moran 2014). These two theories are known as theories for human work motivation and these were proposed by managerial leader of Douglas McGregor. All of these two theories are the complementary models of work force motivation after being applied by that managers in HRM, organizational communication, organizational development as well as organizational behaviour. Theory X eventually explains the major importance of penalties and external rewards and theory Y then highlights on the motivating role for satisfaction of job and hence encourages the workers to take up tasks without any direct supervision (Avolio and Yammarino 2013). Nissan has utilized this specific theory in their organization.

Management Theories and Nissan Motor Corporation

The leadership theories that are considered for the leader of Carlos Ghosn are as follows:

1. i) Great Man Theory: The Great Man Theory is considered as one of the most suitable theories for understanding the entire phenomenon of leadership for Carlos Ghosn (Parris and Peachey 2013). Carlos is the former CEO and chairman of Nissan Motor Corporation. He possessed each and every characteristic of great man theory and hence it was easier for him to solve the issues faced in this particular organization. This particular theory for leadership became extremely popular in the earliest 19^thcentury and the most popular leaders have helped in contribution to the notion that greater leaders are born and are not made (Renko et al. 2015). In most of the examples, it eventually seems as if the correct person for the job seems in emerging for undertaking control of any situation and hence leading the group of people within success and safety.

As per some of the earliest research on leadership at people, who were already successful and effective leaders (Van Dierendonck et al. 2014). All of these individuals or leaders often involved aristocratic rulers, who have successfully achieved the positions as per right. As people of a lesser social status comprises of some of the major opportunities for practicing and then achieving major leadership roles, it had contributed to the ideology of leadership being an inherent ability. Carlos can be compared with the great man theory since he was able to resolve the financial crisis and bankruptcy within the organization (Tourish 2014). He is considered as a great man as his leadership skills are still remembered and compared with other leaders in the world wide. More than 40% market share was increased and the organization gained better position within the market.

1. ii) Trait Theory: The next suitable theory of leadership that is perfect for Carlos Ghosn is trait theory. A series of several traits are being considered within this trait theory and the major aspects of personality are being considered eventually (Storey 2016). In most of the systems and theories, the traits are something that any person either has or does not have, however in several other cases, these traits are the dimensions like introversion an extraversion with every person rating along with the spectrum. Two distinctive approaches are required for defining traits, which are internal casual properties and descriptive summaries. When Carlos Ghosn went from the position of executive vice president of Renault Group to the CEO position of Nissan Motor Corporation in the year of 1999, the organization was under major impact and he figured that he had a 50 / 50 chance to revive the chronological unprofitable automaker (Frohlich and Oppenheimer 2015). They were under 20 billion debt and it was required for Carlos to implement his leadership traits.

As per this trait theory utilizes a proper hierarchy of traits for the core purpose of separating culture from those traits and hence trait theory can be expressed in the cross cultural uses (Van Wart 2014). As it makes the various study of personality difficulty, the expression of traits is much important for knowing about the current situation to get connected to any specific individual. The trait theory eventually tends in focusing on that individual over a situation, where they are present. This specific focus has relaxed in the modern studies after enabling for a major consideration of several external factors (Price and Weiss 2013). Since this focus becomes extremely relaxed, research subsequently expands and hence trait theory is being used by the other individuals. With the proper implementation of trait theory, Carlos was able to create unique within the automobile industry and within the entire industry.

iii) Behavioural Theory: The third significant leadership theory is behavioural theory (Van Wart 2013). The psychology of behaviour refers to the theory of learning on the basis of an idea, by which the behaviours are being acquired through conditioning. This type of conditioning occurs through proper interaction with the environment. The behaviourists eventually believe that the responses to the stimuli shape the actions. Cognitions, emotions and moods are not considered in this particular theory. The classical and operant conditioning are majorly considered in this specific theory (Antonakis and House 2013). This particular theory of behaviour seeks in explaining the human behaviour only after analysis of consequences and antecedents that are present within the environment and the learned association of that particular individual and these associations have acquired through their previous experiences.

Max Weber’s Bureaucratic Management

According to Spears and Lawrence 2016, the behaviourism theory describes the several traditions in the behavioural perspectives and the major applications, which are derived from them. The task oriented leaders have the concern with the staff motivation and hence it is the major concern. The major behaviours of the task oriented leaders are initiation, organization, clarification as well as gathering of information (Roueche, Baker III and Rose 2014). The people oriented leaders majorly focus on the behaviours for ensuring that the inner requirements of people are being satisfied. The human relation is also emphasized for motivating the staffs. These people oriented leaders also focus on the results and tasks and they achieve them through various means. The leaders focus after considering encouragement, observation, listening and even coaching and mentoring (Mendenhall et al. 2017). Carlos resolved the challenges with few solutions that he utilized for transforming Nissan into the most profitable car maker and this was possible due to effective working for his team.

1. iv) Cognitive Theory: The fourth distinctive theory of leadership is the cognitive theory. The significant effectiveness of cognitive theory is being used in the organization for resolving each and every issue faced by the company (Komives and Wagner 2016). The various theories like Friedler, cognitive resource theory are extremely popular to resolve the stress issues of the leader. Carlos has followed the cognitive resource theory as he had solved the issues without any stress. He and his team had put together a distinctive turnaround plan within three months on the basis of input from the young Nissan workers and hence was able to identify the loopholes in their business.
2. v) Transformational Theory: This is yet another important and significant leadership theory that is being utilized by Carlos Ghosn (Grint et al. 2016). He had used transformational leadership for transforming the entire scenario and how to deal with the issues faced in Nissan. Due to transformational leadership, Carlos was able to identify the required changes and hence creating a proper vision for the core purpose of guiding the changes through inspiration and hence executing the changes for bringing efficiency and effectiveness in the company (Frohlich and Oppenheimer 2015). Carlos and his team made a specific planning for breaking maximum of the rules of Japanese industry, such as they closed five plants, reduced head count by 20000 and even dismantled the traditional concepts and hence a group of organizations were enabled to hold equity with one another.
3. vi) Transactional Theory: The transactional leadership major focuses on performance, organization and supervision of the employees (Bolman and Deal 2017). This particular leadership eventually promotes compliance by the followers through both punishments and rewards. Through these punishments and rewards these leaders subsequently keep their followers motivated for the short term. The leaders, who are using such leadership help the company for finding deviations and faults (Chemers 2014). Similarly, Carlos Ghosn has utilized transactional leadership theory within their organization for the proper and effective removal of issues or problems faced in Nissan Motor Corporation.

The management theories for Nissan are as follows:

1. i) Frederick Taylor’s Scientific Management: The first management theory that is being used for comparing the organizational position of Nissan is Scientific Management (Dinh et al. 2014). It was required for proper analysis and synthesizing of work flows. The main objective of this theory is to improve the economic efficiency and majorly labour productivity. Since, the organization had to work with their labours, it was vital to manage the labours.
2. ii) Henry Fayol’s Principles of Administrative Management: The second management theory that is suitable for Nissan is Henry Fayol’s principles of administrative management (Glatthorn et al. 2018). There are 14 principles in total and each of them is equally important for understanding the position of the company. They should divide their work amongst the organizational members for proper analysis of their processes.

iii) Max Weber’s Bureaucratic Management: As per this theory of Max Weber, bureaucracy is based on the systematic formation of Nissan and is being designed for ensuring efficiency as well as economic effectiveness (Gurdjian, Halbeisen and Lane 2014). This is the ideal model for better management and even the administration for bringing the power structure of Nissan into focus.

1. iv) Elton Mayo’s Human Relations Theory: According to this particular theory, the human relations with the organization is required to be fulfilled under every circumstance (Nanjundeswaraswamy and Swamy 2014). This could only be done after changing the working conditions of employees. Nissan Motor Corporation should have changed the working conditions of their employees and thus it would have been easier to deal with the financial crisis of the company.
2. v) Theory X and Theory Y: The final theory is Theory X and Theory Y. These are required for providing better motivation to the employees. Theory X is positive theory and theory Y is negative theory (Robertson 2016). The resource management and organizational communication are also considered in this scenario. Nissan has properly dealt with the issues after involving Carlos Ghosn.

1. i) As per Shamir and Eilam-Shamir 2018, the most important and significant characteristics of the Nissan organizational members under the leadership of Carlos Ghosn is that the leader should be in power and the respective situation must determine which kind of leadership is required as well as the major effectiveness of the leadership. Carlos can be compared with the great man theory of leadership as he comprised of each and every feature of a great leader (Tannenbaum and Schmidt 2017). The most significant and important assumptions of a great man leader majorly include leaders are born and not made and they possess proper attributes that were being inherited and such leaders could even arise whenever there is a major requirement. Since Nissan was going through major crisis in the early 2000s, it was required for Carlos, the then CEO and Chairman, to take necessary steps and apply his leadership skills (Wang, Waldman and Zhang 2014).
2. ii) There are two distinctive approaches for defining traits, which are as internal casual properties and as completely descriptive summary (Antonakis and House 2014). The internal casual definition states that the traits are influencing our behaviours and also for leading the teams to do the things in line with this specific trait. Moreover, these traits as descriptive summary are the descriptions of various actions, which does not try in inferring connection. The trait theory for leadership majorly emphasizes on the proper and effective identification of different personality traits as well as features, which are solely linked to the successful leadership within several significant situations. It is termed as the earliest type of investigations within the nature of an efficient leadership and is being tied to this great man theory (Hill, Jones and Schilling 2014). The major traits involved in this particular theory of trait are intelligence people skills, decisiveness, competency, creativity, trustworthiness and many more.

Each of these above mentioned skills are quite important and significant for maintenance of efficient leadership for the specific individual (Parris and Peachey 2013). As per Carlyle’s theory of traits, it is being shaped by some of the extra ordinary leaders and they comprise of the core capability for leading his followers and an entire team. According to Carlyle, trait leaders are not created or developed, rather they are born with such qualities. The most significant rationale of this theory of leadership include few traits producing respective behavioural patterns; these specified patterns are consistent within several situations and the individuals are born with these leadership traits or attributes (Van Dierendonck et al. 2014).

 There are six distinctive leadership theories mentioned for Carlos Ghosn in Nissan, which are great man theory, trait theory, behavioural theory, cognitive theory, transformational theory and transactional theory (Nissan-Global.com. 2019). These mentioned theories are compared with Carlos since all the characteristics were present within him and hence it was easier for him to deal with the challenges. They were hence fit for the leader. Similarly, the management theories are also fit for the organization of Nissan for understanding the issues faced here.

Conclusion

Therefore, from the above discussion, it could be concluded that leadership is one of the most important and significant requirement in any organization or team for producing better performances in comparison to others. The main reason for this type of performance is that leaders provide proper guidance to their team members or followers and hence it becomes quite easier for the team or organizational members to complete their work effectively and efficiently. Leadership would be the subsequent art of motivating the distinctive group of individuals to act towards the successful achievement of a common objective or goal. Within a business setting, it eventually refers to the fact that directing colleagues and workers with a proper organizational strategy for the core purpose of fulfilling each and every need of the company. Leadership even captures the major essentials to be able to inspire others and being prepared for doing so. An effective leadership is completely on the basis of ideas, whether they are borrowed or they are original; however does not taken place until and unless all of such ideas could be communicated with others in such a manner that engages them enough for acting as the leader is wanting them to act.

The leader of the organization is the true inspiration and director of actions and that particular person within the group subsequently possesses the major combination as well as leadership skills, which makes others wanting to follow his and her direction. The leadership is subsequently linked to the performances and when the leaders provide proper guidance to the team members, the organizational goals and objectives are being fulfilled without much complexity. The effective leaders eventually increase the organizational bottom lines. When any specific individual within the leadership role is not meeting the respective profit expectations that are being set by the boards, shareholders and higher management; he or she will not be declared as a successful leader.

The terms of leadership and management are utilized interchangeably. The management refers to the organizational management structure as the leadership and towards individuals, who are the original managers as the leaders of several managerial teams. The leadership needs attributes, which extend beyond the management responsibilities. For being effective in nature, the leader certainly has to control the major resources. However, leadership even includes few attributes like communication, inspiration and supervision and these are the primary skills to be a leader. There had been a major evolution of a leader in organizations or teams and how to deal with the complexities faced by any leader.

The above provided report has clearly outlined a detailed discussion on the proper application of few leadership theories to one of the most popular and significant leaders in the world, namely, Carlos Ghosn and application of management theories to the most popular and significant car manufacturing company, known as Nissan Motor Corporation. Carlos Ghosn is considered as the best leaders or chairmen, Nissan could ever have. This report has properly described the leadership skills and traits that Carlos has and his unique and distinctive leadership for resolving issues within the organization of Nissan. Moreover, subsequent details regarding the efficient application of leadership as well as management theories within Nissan are also provided in this particular report.

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