Evaluation of development of leadership and management theories
Discuss About The Social Science Bases Of Administrative Theory.
Leadership is an art which involves managing, organising and leading group of individuals whether in an organization or country. Primary motive of leadership is to provide clear information to the group members with respect to the organizational goals, vision, and mission. Leadership is one of the crucial aspects for organization as well as for the country in order to reach out to the desired destination. Without appropriate leadership in the organization, efforts of employees cannot be grouped together and mainly the team would not be build up (R?ducan & R?ducan, 2014). With regards to this, it is necessary for every organization to encourage leadership and its attributes at workplace so that efforts of all the employees could be grouped together along with showing the right direction to them with the objective of attainment of desired goals. Apart from this, leadership involves number of steps which needs to be executed before leading group by providing appropriate information, knowledge and by organising certain team interactive sessions in order to boost up confidence of employees. Apart from this, it is the duty of a leader to pull interest of all the members of the group so that the desired goals could be accomplished. Along with the leadership, management is also necessary because they are known for managing organizational activities along with getting the right things done from the different departments of the organization. Management is responsible for setting up the strategies, plans and procedures in order to accomplish the tasks and it is the duty of a leader to follow all the rules and regulations set up by the management so that desired destination could be reached (Bolman & Deal, 2014).
It has been observed that management and leadership are two crucial aspects for an organization and they act as the two sides of a coin. Both are irrelevant and waste if not executed in an appropriate manner. In this manner, several leadership and management theories were developed so that irrelevant to the business conditions; organizational tasks could be managed along with the attainment of positive outcomes. Thus, it is necessary for the organization to select appropriate theories as per the functionalities in order to enhance the efficiency of employees as well as of the organization as whole in order to attain the desired goals and objectives. This has been observed that leadership and management styles affect employees of organization in different ways and this plays vital role in while developing own skills for being an efficient business leader and manager (Bârg?u, 2015).
Leadership theories
This report will include two crucial aspects in relation with the leadership and management theories. In relation with these theories, critical evacuation of development of leadership and management theories will be discussed in order to make better understanding of the leadership and management theories. Along with this, applicability of these theories will also be analysed so that appropriate outcomes could be attained. Further, the report will focus over the discussing nature of leadership and management theories in order to apply them in the organizational context (Bolden, 2016).
Leadership is defined as an art of leading people in order to execute the right things following the vision set up by management along with involving every teammate in the accomplishment of task to attain appropriate objectives. Apart from this, it has been observed that leaders influence and inspire teammates along with developing confidence amongst them. Leaders are also responsible for building effective workplace environment along with encouraging teammates to share their views and opinions in order to build effective bond between the teammates. Leaders and managers are required to provide appropriate resources to its teammates so that they could think out of the box through which unique and better alternatives could be found for accomplishing organizational tasks (Balon, 2014). This helps the organization to attain its set goals and objectives and to attain competitive advantage.
While discussing the development of leadership theories and leaders, the major concern is to decide is whether leaders are born or made. Leaders play an essential role in organizational success, thus, it is necessary to evaluate this fact so that organization could adopt appropriate steps to enhance existing leaders’ efficiency of the organization along with creating more leaders. Apart from this, it has been observed that born leaders are capable enough to identify right people in the organization rather developing the right ones. However, created leaders focus on right opportunities for the people in order to develop them as leaders. From the introduction of leadership, lot of transformations have been noticed in the leadership styles which has more influence, advancement and improvement which could easily be evaluated with different leadership styles (Amanchukwu, Stanley & Ololube, 2015).
Various business experts, authors and philosophers have invested unique leadership theories after evaluation of different marketing and business situations. Development of different models and approaches describe the idea of leadership in consideration to the leadership theories. Leadership theories have been mainly classified into behaviour, trait, and contingency theory (Bush, et. al., 2017). Following is the description of these theories:
Trait theory
Main focus of trait theory is to showcase the characteristics of leaders. This is also considered as the way to predict the failure and success of leadership, thus, it is less of a leadership style. This is the major reason why leaders have shown their consent that they hold appropriate qualities which are generally required for an effective leader. Leaders who follow trait theory of leadership help the organization in terms of enhancing productivity along with leading the people in an appropriate manner. Trait theory also identifies physiological appearance, socio-economic background, personality, demography, self-confidence, achievement, and other characteristics which lead to emergence of leadership qualities (Latham, 2014). Apart from these qualities, trait theory of leadership proves that leaders are required to be convincing in nature so that the common objectives of organization could be attained. If all employees will go in different direction, attainment of common goals would not be possible and this will lead to failure of a leader. In response to the critique that leaders are born or made, it has been analysed that people with good understating abilities could hastily gain relevant information with regards to the qualities and personal traits which are required for being an effective leader. Thus, it could be said that leaders could also be made (Dinh, et. al., 2014).
Apart from the trait theory of leadership, model for trait leadership style has been described for making better understanding about leadership traits, qualities and its impact on leader’s effectiveness and performance. In contemporary organizations, human resource departments implement various strategies and approaches for finding emerging leaders. These organizations mainly look for the behavioural traits and personality for the purpose of selecting emerging leaders along with the objective of enhancing organizational performance. Behavioural traits and personality act as the major elements for finding best leader because leaders with these traits could easily manage employees from different backgrounds along with directing them in one direction for the objective of enhancing organizational performance (Meuser, et. al., 2016).
There are lot of advantages of trait theory of leadership but along with the strengths and benefits of trait leadership theory, there are several limitations also. One of the major disadvantages of this theory is to determine that who is a good leader and who is a successful leader. Apart from this, there are several other limitations also exists such as the list of traits is very long and determining each and every trait in every leader is bit difficult along with this, selecting some of the crucial traits is another difficult task due to which identification of good and a successful leader becomes bit difficult (Chemers, 2014). According to several business experts, it has been identified that there are several traits which could easily be obtained from training and development sessions while the ruling and leading behaviour could not be learnt, these qualities comes along with the person. Thus, trait theory of leadership is very complex which could only be applied considering the business requirements or at the initial level (Ghasabeh, Soosay & Reaiche, 2015).
This theory mainly focuses on behaviours of leaders and it has been proven by various researchers and philosophers that behaviour of leaders proves them as convincing leader because till the time, leaders would not be able to convince their teammates for following his vision, reaching to the desired destination would be difficult task. Origin of behaviour theory of leadership is the criticism of trait theory and it could be stated that leadership could be learnt and it is not necessary that one should have born with leadership qualities and traits. Major elements of behaviour theory of leadership are concern of people, and concern for results (Lievens, et. al., 2018).
Concern for people describes consideration of leaders towards their teammates in relation with their needs, interest, personal development areas at workplace etc. This will help the leaders to be more efficient and it will also help the leaders to build reliable image amongst their subordinates and teammates which will ultimately enhance the productivity of both organization as well as of the employees. Apart from this, second major element of behavioural theory is concern for results which describes the attainment of organizational goals, objectives along with enhancing overall organizational performance. In relation with this, leaders did not concern for the employees’ benefits and their interest as their primary motive is to attain organizational objectives along with the attainment of competitive advantage in the target market (Landis, Hill & Harvey, 2014).
It has been observed that no leadership style suits all the business situations, thus, leaders are required to adopt appropriate combination of leadership styles so that all organizational contexts could be addressed along with eliminating the risk.
Along with benefits, every approach, strategy and policy comes along with the limitations and weaknesses. In relation with the behavioural approach of leadership, major limitation is the difference in learning of behavioural practices along with executing them in appropriate manner. It is very easy to differentiate the behaviour as per the situations but it is hard to identify that when to behave in which manner. This leads the organization towards failure. For example, one of the organizational leaders is representing the whole organization in a business meeting and there he requires showcasing all the achievements of the organization along with its strengths but leader unable to showcase them appropriately due to lack of confidence or due to any other reason will generate negative outcomes for the organization (Gintis, 2014).
It has already been discussed that every business situation requires different leadership style and with regards to this, objectives, concerns and actions of leaders for every situation also differs. Thus, it could be said that leaders are cogent enough to choose appropriate leadership style wisely as per the organizational situation. Main part of this theory is choosing leadership style from the available options as per the situation of organization along with this, it is also dependent on the leaders’ ability to analyse the situation so that appropriate style could be picked up. Along with this, organization focuses over enhancing its performance on regular basis and in situations where it depends upon the market conditions and on other external factors, it is the duty of managers and leaders to wisely choose appropriate set of strategies through which desired goals could be accomplished (Lord, et. al., 2017). Further, leaders should analyse the abilities of their teammates and they should be aware about their teammates’ cogency so that their abilities, talent and skills could be utilised in optimum manner. Organization is required to perform without considering the market situations and conditions because main motive is to sustain in the dynamic business environment for long period of time. In accordance with dealing with the different workplace and marketing environment, leaders need to be predictive enough so that available talent, skill and human resources could be utilised in an appropriate manner (Villoria, 2016).
Criticism of any approach or style of person helps to identify the mistakes, limitations and weaknesses. This provides an opportunity to improve so that goals could be accomplished in an appropriate manner. As there are not such limitations exists with the contingency approach because this approach is implemented on the basis of situational requirement (Meuser, et. al., 2016). Several limitations made by critiques to this theory are:
- Contingency theory does not follow the concept of “universality of principles”.
- No definite choice is available and in order to reach to a decision, right choice is being selected from the available options.
- Determining all the factors before taking a decision is not possible and developing relationship between all the factors is another difficult task (Lehmann-Willenbrock, et. al., 2015).
This theory of leadership is implemented on the basis of certain situations. Generally, this theory of leadership is tend to be implemented when there is requirement for micro managing of employees and leaders make sure that every detail is done in accordance with the orders obtained from top level management. In terms of motivating employees, leaders use rewards and punishments and this helps both the parties to build appropriate interaction as well as relationship with the employees, it will ultimately benefit whole organization along with the employees. This leadership could be adopted as the primary style of leadership which will create positive impact over organizational performance. Leaders with transactional leadership style expect that employees will obey the compliances while executing their assigned duties. Apart from this, it has also been observed that this leadership style is effective in terms of attainment for short terms goals and it also helps the employees to learn new skills along with getting back non-performing employees on track (Bridoux & Stoelhorst, 2016).
Transactional leader is not able to analyse the difference between praising employees who meet the expectations from employees. He believes that simple reward measures will act as the primary tool for motivating employees to enhance their performance. Apart from this, transactional leader is found rigid in his expectations due to which he thinks that employees will work in the same manner as they are being told (Fiedler, 2015).
Main focus of a transformational leader is to build confidence amongst the employees along with encouraging them to perform in the expected manner from management. Transformational leadership style develops interest in the employees to self-join the mission of organization. Along with this, this leadership style helps both leaders as well as employees for bringing new ideas which could build positive workplace culture through which desired goals could be attained easily. In this leadership style, employees’ values, beliefs and morals are also considered in order to develop reliable image amongst the employees for organization and leaders (Antonakis & House, 2014).
All these leadership theories are unique from each and every theory has its own significance in different scenarios. Application of an appropriate leadership style totally depends on the situational demand and leader’s ability to predict the demand of particular situation. If leader will fail to predict the demand of situation, it may affect organizational performance and it will also highlight the weakness of leader. Thus, main attribute which every leader should have are adequate analysis and prediction capability to analyse the demand of market situation in order to implement appropriate leadership style for the betterment of organization (Tyssen, Wald & Spieth, 2014).
- Lack of detail: Transformational leader is strong in motivating employees but at the same time, he often lacks in paying attention to the details required for creating strong corporate structure and following company’s policies for accomplishing the tasks (Birasnav, 2014).
- Disguising reality: Main power of a transformation leader is motivation and with regards to this, he convinces employees to take the responsibility and improve themselves by attending training programs as well as through hard work. But sometimes, transformational leader lacks in attainment of desired outcomes and then after encouraging teammates due to lack of vision (Rosenberg Hansen & Ferlie, 2016).
Management is another crucial aspect for the organization which manages all tasks along with setting them in appropriate hieratical manner so that the set goals and objectives could be attained. Management of organization is also responsible for coordinating efforts of employees, developing rules, regulations, policies so that the tasks could be accomplished in an effective and efficient manner. Apart from this, management is also responsible for analyse the requirement of organization so that it could be fulfilled in right time in order to reach to the desired location on time. Primary function of management theory is enhancing organizational efficiency and productivity. While implementing the strategies for organization, managers use multiple management theories in order to deal with the dynamic business situations (Dahlgaard-Park, Reyes & Chen, 2018). Along with this, management theories also help the managers to build and design an effective workplace environment under which workforce diversity could be promoted. Effective workplace environment also helps in developing a positive culture under which all employees could feel safe and secure. Along with this, positive workplace environment provides appropriate fair and equal opportunities to the employees. With regards to positive workplace environment, employees could freely share their views, feedbacks and opinions in relation with improving policies, amending regulations or launching new strategies for the motive of enhancing organizational performance. Ultimately, primary objective of the organization would be easily attained i.e. enhancing productivity of the organization. Most commonly management theories are implemented considering the workforce, workplace requirements and the objective of organization. Popular management theories are contingency theory, chaos theory and systems theory. Apart from this, there is a management theory called theory X and Y and it addresses management strategies for workforce motivation and for enhancing worker’s productivity (George, 2015).
This management theory is quite similar to the situational theory of leadership which focuses on the requirement of organization and then takes decision rather believing in the concept of “one fits for all”. Manager first analyses the conditions of the market and then takes appropriate and required measures with the objective of dealing with the conditions of market along with accomplishing organizational tasks in an appropriate manner. Examples for contingency approach are: managers in the university always want to utilise leadership approach under which all employees could participate so that better outcomes could be attained whereas, leader in the army always wanted rule the whole army unit in order to walk on the same path for reaching to the desired destination (Gassmann, Frankenberger & Sauer, 2016).
Systems theory is based on the different thinking perspectives of managers and workers. With regards to this theory of management, managers analyse the perception of workers towards the organization along with analysing the impact employees’ actions towards organization. On the other hand, managers analyses the perception of organization towards the workers and the impact of organizational system over employees. System of an organization includes varieties of tasks, policies, and regulations which are combined to attain set goals. This theory is a broad perspective and mainly used in big scale organizations by managers because it allows managers to determine events which are executed at workplace and the pattern followed by organization for the accomplishment of tasks. Thus, this theory helps the managers to coordinate programs for working as a whole unit for the attainment of overall goals and objectives rather coordinating programs for isolated departments (Huarng & Ribeiro-Soriano, 2014).
- Does not act practical in al situations and due to this decision making process gets delayed.
- This approach is not for small companies.
- Inter-dependence nature is not defined (Daddi, et. al., 2018).
It is necessary for an organization to constantly adopt change in the workplace so that dynamic business conditions could be matched along with the objective of upliftment of organizational performance. Thus, change is constant; however, there are several events and circumstances in organization which could be controlled and several cannot be controlled. With this regard, it is necessary for the organization to implement appropriate changes so that the requirements of both organization as well as its employees could be fulfilled along with gaining competitive advantage. In order to attain positive results, managers are required to build appropriate confidence amongst the employees so that complexity could be build up amongst the employees. This also helps the organization to build appropriate synergy amongst the employees so that the goals could be accomplished. With constantly updating strategies and policies of the organization, it becomes easier for the employees to accept change which also lifts the performance of employees up (Morgeson, Mitchell & Liu, 2015).
Chaos theory has far reach when it comes to action and reaction and it is very difficult to find the initial source of the outcome. The size of fluctuations from one period to next period in chaotic system varies in terms of size. Due to this, managers might underestimate the potential of large changes in the industry due to which conditions and competitors’ behaviour also vary. Apart from this, major disadvantage of this theory is predictability. It is hard to analyse the way through which outcome has been attained when external factors have strong contribution in terms of attainment of outcomes. This makes the procedure of reproduction of effective results difficult (Otley, 2016).
The management theory an individual chooses to utilize is strongly influenced by beliefs about worker attitudes. In this situation, when managers analyses that workers require ambition to follow along with rewards for enhancing their performance lean towards Theory X. While, Theory Y believes that workers should analyse their responsibility for they were being hired. While implementing Theory X, authoritarian style of leadership also flows together and in Theory Y, managers encourage workers to participate in terms of accomplishing set goals (Stemple, Roy & Klaben, 2014).
Following are the limitations of Theory X and Theory Y:
- Theory X style of management fosters hostile and distrustful atmosphere.
- Theory Y is tough to uphold in reality.
- Theory Y and Theory X both are very hard to be used with each other.
- Theory X and Theory Y make employment harder (Laudon & Laudon, 2016).
Leadership and management theories plays vital role in organizational success, growth and development and with regards to this, it could be said that both managerial as well as leadership aspects have positive nature. In relation to this, it is necessary for the organization to select appropriate leaders as well as managers with appropriate leadership and management styles so that the desired goals could be attained. As managers and leaders both have significant role in the organizational success, thus, evaluation of the nature of their style of working is also necessary so that execution of organizational tasks could be done in an appropriate manner (Barney, 2017).
Jeff Bezos is the CEO of Amazon Inc., a giant e-commerce company. It is one of the largest e-commerce companies across the globe and in terms of market capitalisation and revenues, Amazon Inc. stands on the peak position while in terms of total sales, it stands on the second position after Alibaba Group. Primary reason behind success of Amazon is its CEO’s unique leadership and management styles. Organization was established in 1994 and in very short time period, organization as well as his CEO has made their name in the top companies and as top thirty richest entrepreneurs across the globe respectively. Jeff has always believed in customer satisfaction and this has helped the organization to develop reliability amongst the customers. Where other companies and their leaders implement strategies for the motive of enhancing revenues, profits and sales, CEO of Amazon, Jeff Bezos adopts and implement strategies for the objective of enhancing customer satisfaction. From his perspective, customer satisfaction is the best alternative through which organization could attain its desired goals and objectives. In midst of huge success, Jeff Bezos’ leadership style some of the key lessons through which other companies could also grow and sustain in the dynamic and competitive business environment for longer period of time (Puche, et. al., 2016).
Jeff Bezos is a transformational as well as charismatic leader and with its unique leadership styles, he has been able to manage to make the Amazon as one of the top e-commerce companies. Today, Amazon is dealing in millions of products in more than 188 countries. Along with this, organization is operating through more than 12 registered offices in different parts of the globe. In the initial days, Jeff was practicing coercive and autocratic leadership style (Azar & Vaidyanathan, 2016). Coercive leadership seeks for immediate response from its subordinates and teammates and this leadership is also linked with dictatorship under which employees and workers are required to show their consent on the orders given by leader. In the initial days of Amazon, Jeff was holding the whole power of decision making process and he was practicing centralised method for taking decisions. In this situation, for every decision, management requires taking approval from Jeff which was a long process and due to this; he faces lot of criticism from his own team. This also enhances the attrition rate of organization due to which company was losing talented and skilled labour. Later on, Jeff realised that there is huge glitch in his leadership style due to which organization was not able to grow accordingly and as per the basis of expectations. Reviewing the organizational situation, Jeff decided to decentralise the decision making so that decisions could be made on the basis of small level in order to gain positive outcomes (Koehler, Kress & Miller, 2014).
Jeff’s leadership style is unique and he has the ability to switch his leadership style dependent on the circumstances and on the basis of people he is working with. In general he pretends to be a democratic leader and this has been proven by his subordinates. Along with this, he is also practicing authoritative leadership style. In addition to this, he has appropriate capability to influence people with his vision so that all employees could work as a team in order to execute the functionalities of organization as well as for accomplishing desired goals and objectives. Jeff has a strong sense of humour and excellent memory through which he can easily bring people to make them do what he wants to do. As per this, it can be concluded that Jeff’s leadership style is mainly linked with transactional leadership style and this style of leadership mainly focuses on enhancing employees’ efficiency by punishments and rewards. Jeff has a bright vision and mission but along with this, he used to implement strategies on the basis of current business environmental conditions rather adopting strategies which will bring positive results in the coming future (Robertson & Combs, 2014). Behind the success of Amazon, role of Jeff Bezos is very significant and his unique style of leadership has proved him effective as well as efficient. Along with the various leadership styles, he is also known as charismatic leader. These leaders are committed and driven by their convictions and their cause. Charismatic leadership style is quite similar with the transformational leadership style as the qualities in both these leadership style share similar qualities. Both these leaders try to bring drastic change and focus on transforming organization as per the leaders’ vision.
Jeff Bezos is known as the giant leader of this era and he has appropriate knowledge and efficiency to deal with different situations with his unique style of leadership. Amazon was started in a garage by selling books through internet and today, it is the largest online retailer across the globe in terms of market capitalisation and revenues. Thus, it could be said that leaders play huge and significant role in terms of enhancing organizational performance. Jeff had a bright mission and vision of selling every item on internet which is now fulfilled. With a positive vision and right direction, every organization could attain its set goals along with gaining competitive advantage (Venkatesh, Thong & Xu, 2016).
Management theories are essential approach for performing management functions. With the help of management theories, evolution of various theoretical approaches with regards to the organization and its management processes could easily be understood. Apart from this, it also provides foundation for analysing and understanding principles and skills of management which play vital role in the execution of functions associated with the management practice (Thompson, 2017). Management theories help the managers to operate in a systematic manner along with accomplishing the goals and objectives. It is necessary for an organization to arrange the tasks in an appropriate manner so that positive results could be attained. Apart from this, management theories help the organization to enhance the efficiency of the organization through which positive outcomes could easily be attained. Every manager has different concepts and perspectives while implementing the strategies at workplace and due to this, managers use multiple concepts for dealing with different organizational conditions. It has been observed that contemporary organizations are required to focus on several aspects to enhance their productivity (Bratton & Gold, 2017).
Major concepts are managing employees, fulfilling their demands and wants and managing the demand for the target audience. With regards to this, every single concept plays vital role for the purpose of enhancing the goals and objectives of the organization. Popular management theories are Theory X and Theory Y, chaos theory and contingency theory. All these theories were not effectively applied in the traditional times but in the contemporary organizations, there are numerous aspects which need to be considered in order to accomplish the goals and objectives. Amongst these theories, Theory X and Theory Y have strong impact over organizational performance in order to address management strategies for the objective of motivating employees. This helps the organization to implement for the objective of increasing the productivity of employees through which a team could be built up. In relevance with understanding the management theories is the only way through theory is suitable for the beneficial. These theories are essential for enhancing organizational efficiency and these are applied in accordance with the circumstances at workplace. Major issues which are analysed in the workplace are dignity from employees and securing the crucial data of organizational clients. Apart from these issues, there are several other issues which originate at the time of execution of tasks are autonomy, job satisfaction, respect, culture of workplace and attrition rate. For managing all these issues in an appropriate manner, it is required for the managers to adopt multiple management theories so that each and every aspect could be managed appropriately (Clegg, Kornberger & Pitsis, 2015).
These management theories are useful in terms of practising organizational tasks so that the motive could be attained and it is also necessary for the purpose of managing the activities at workplace. Contemporary organizations carry objectives such as enhancing revenues, sales, dealing with the workplace requirements, enhancing job satisfaction of employees, accomplishing organizational tasks in an appropriate manner and attaining sustainable growth and expansion objectives. For managing all these objectives, organization faces lot of challenges and with regards to these challenges, managers are required to implement a relevant approach. These approaches are meant for building Hyperloop for positive synergies amongst the all departments of the organization. Every theory has its own significance as per the circumstances and with this regard, it is essential for the managers to wisely choose one of the best theories of management so that positive outcomes could be attained along with the acquiring success and growth related objectives.
Contingency theory states that managers take decisions on the basis of current circumstances. Probability of success of contingent managers is much high in comparison to the managers who implement one decision for all situations. For example, a manager believes that risks could be avoided as it will not much affect the organizational performance. This approach will suit the organization only in those conditions where the risks would easily be bearable such as one of the worker gone on strike. This will not much affect the organizational performance and it could easily be ignored but the situations where whole worker union went on strike and still manager is not focusing on determining the available alternatives to bring back the workforce, it will lead to harm the organization. It could be said that every situation needs to be tackled in different way so that the goals and objectives could be attained in an appropriate manner. Thus, it is required for the managers to analyse the situation and then appropriate management theory needs to be applied so that the situation could be tackled along with the objective of enhancing organizational efficiency.
Conclusion
From the aforesaid information, it can be concluded that development of leadership and management theories, both have its own significance and in order to enhance organizational performance along with gaining competitive advantage in the market. Every multination or small company has its working procedures, policies, strategies and regulations which are strictly followed for the objective of accomplishing organizational in an effective and efficient manner. In this report, evaluation of development of leadership and management theories has been discussed in the first phase of the report. This phase has analysed several leadership as well as management theories. The next phase of the report has concluded the application of leadership theories by leaders and the application of management theories in the contemporary organizations. Every theory has its own limitations and strengths and the same goes with leader as well as manager. With regards to this, it has been analysed that the leaders and managers are responsible for analysing that which approach needs to be implemented on a particular situation for the attainment of desired goals and objectives.
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