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  • Jaya Bharat Chebrolu

    Member
    January 3, 2022 at 4:47 pm

    Question Part 1: Which interviewer do you think you would work best with? Why do you prefer the leadership styles, roles, and traits they demonstrated?

    VP : Democratic or Participative leadership it is characterized by consultation with the subordinates and their participation in the formulation of plans and policies. He encourages participation in decision-making. He leads the subordinates mainly through persuasion and example rather than fear and force.

    CEO : Pacesetting & Affiliative leadership pacesetting leader shows through example This works most effectively when the team is already switched-on and highly trained, and the leader needs quick results and affiliative leader works to create emotional ties that bring a feeling of bonding and belonging to the company this works best in times of stress, when teammates need to heal or needs to rebuild trust.

    CFO: Relationship Management The ability to develop these relationships is, therefore, a vital component of a successful CFO leadership style. Getting people on board with new ideas is key to making changes that can lead to business growth. This means working not only with your team but with others across the organization and with colleagues at all levels as well as board members, taking a proactive and positive approach to nurturing relationships that work.

    Among all i choose to select to be CEO to be motivated by a desire to shape strategy and exert influence beyond the organization. You’ll develop a methodical framework to go after what you really want. Less dreaming, more doing and more confidence in your talents, skills and experience, which translates into higher earning potential.

    There are different ways in which leaders approach people to motivate them. If the approach emphasizes rewards, the leader uses positive leadership. If the approach emphasizes penalties, the leader is applying negative leadership. Negative leaders should be called bosses rather than leaders.

    The three management styles – autocratic, democratic and laissez-faire.

    Advantages of a Democratic Leadership Style:

    1. It works well when trying to solve a complex concern.
    Leaders know how to solve problems, but they may not be able to solve all problems. By allowing everyone to work on a solution using their own education and experience, innovation is encouraged, making it possible to address complex and critical concerns.

    2. It encourages creativity.
    The democratic leadership style is more of a hands-off approach. Instead of micro-managing the situation, leaders use this style to encourage individualized creativity. For many teams, this creates higher levels of productivity and insightful inputs because each team member is encouraged to use their strengths to benefit everyone. It also allows employees to develop a plan that helps them be able to evaluate their own performance.

    3. It strengthens the relationships of a team.
    People who work with a leader that practices the democratic leadership style tend to form closer, more supportive bonds with one another compared to leaders using other leadership styles. Team members are naturally connected to one another because their ideas, and their feedback, are important to everyone.

    4. It is a leadership style that anyone can practice.
    Any leader in any industry has opportunities to implement the democratic leadership style. Even leaders who don’t use this style naturally can begin to use its techniques to shift their perspectives over time. Team members tend to prefer this leadership style because it makes them feel like they are a valued member of the organization.

    5. It encourages honesty within the workplace.
    The democratic leadership style does not work unless the leader using it is honest. Leaders must be able to communicate the situation accurately to ensure the decisions and feedback being generated are based on real information. Even when leaders have the final say, the honesty required for this style forces each leader to share their ideas on an equal level for discussion. By staying open and honest, leaders encourage their team members to have the same traits.

    6. It improves job satisfaction.
    When team members feel like they have an equal role in running the team, then there is a sense of empowerment that comes with that responsibility. The democratic leadership style encourages workers to be more than just a machine or a “warm body.” It allows people to feel like they really are an important part of the organization.

    7. It encourages stronger commitment levels.
    For the average worker, if they do not feel passionate about a request or task, then their commitment levels to it will be minimal. They have no ownership over the task, so they have no ties to completing it to the best of their ability. When workers feel like their contributions are taken seriously and are important, then stronger commitment levels appear because there is more ownership to the task that is required. If people are given the chance to be creative, then they invest themselves into the outcomes that can be achieved.

    8. It increases team knowledge.
    Diverse opinions and ideas are important for the creative process. They are also important for the team’s overall knowledge base.

    What combination of leadership style, role, and trait would be best for the following business situations?

    Question part 2: What combination of leadership style, role, and trait would be best for the following business situations?

    1. Situation: A company with routine and unskilled job functions.

    Transformational leadership Style would be the best suited and If any organization used the word “pivot” a lot during the pandemic, you might be a transformational leader. These leaders are focused on motivating and inspiring teams to innovate and achieve a shared vision.“ Several years into my experience as a Vistage member, I realized I was creative in helping other people solve their problems,” Baines said. “I found myself growing from an autocratic to a transformational leader.”

    A Transformational leadership gives a big-picture to the thinker Work with trusted teams that don’t require constant supervision and Know how to provide encouragement and inspire others to achieve shared goals.

    2. Situation: A company with dangerous job functions (toxic waste handling or heavy equipment operation).

    Authoritarian leadership:

    An autocratic leader centralizes power and decision-making in himself. He gives orders, assigns tasks and duties without consulting the employees. The leader takes full authority and assumes full responsibility.

    Autocratic leadership helps Subordinates act as he directs. He neither cares for their opinions nor permits them to influence the decision. He believes that because of his authority he alone can decide what is best in a given situation. This leadership is based upon close supervision, clear-cut direction and commanding order of the superior. It facilitates quick decisions, prompt action and unity of direction. It depends on a lesser degree of delegation. The employees work as hard as is necessary to avoid punishment.

    3. Situation: A company preparing to disrupt an existing market with ground-breaking technology.

    Democratic leadership or participative leadership or shared leadership is one of the leadership styles that allows equal participation of everyone in a decision-making process. Democratic Leadership involves not only the leaders but also their employees in every decision-making process. Even though the leaders give the final word- team members participate equally during brainstorming and find a solution to a problem.

    Benefits of Democratic Leadership Style
    It helps in solving complex problems.

    It is a leadership style that anyone can practice in any industry.
    Democratic leaders receive a more diverse set of ideas and concepts.
    It enhances job satisfaction.
    It encourages honesty amongst workers.
    This leadership style connects people to their work.
    It enhances team knowledge.

    It encourages more substantial commitment levels.
    This style promotes the free flow of ideas.
    A leader who uses this style is considered more competent.

    4. Situation: A company preparing for an IPO.

    Companies raise capital for growth, innovation, and expansions. They get the ability to take risks against the financial cushioning of the IPOs. An Initial Public Offering is launched for the main purpose of getting funds, which can lead to a lower cost of capital for both debt and equity.

    This provides an opportunity for the general public to buy shares of a company.

    1. Reducing debts and Funding Research : Companies have debt generally in the form of bank loans. Companies aim to reduce their debt loads through the use of money from IPO. This results in a lower cost of capital for debt.

    2. Improvement in liquidity: IPO provides a way for private investors to convert their ownership in the company to other means such as currency. An IPO allows founders or owners of the company to monetize their investments.

    3. Diversification and mergers: The money from the IPO is used by companies to even fund mergers. Since a successful IPO brings credibility to the company, it paves an opportunity for mergers. Companies also use the IPO money to invest in similar businesses, thus making the main or core company more successful.

    4. Visibility and credibility: A company going public carves a space for itself in media thus reaching the public at large. This branding of the company’s image will act as leverage for a future transaction.

    When an IPO is successful, business analysts, investors, and financial advisors study the company in detail and further help it get more business by promotional activities and bits of advice to the public.

    As a company is in continuous need of money for growth, an IPO puts it in a better position to raise finances from other sources such as government and private lenders.