Edidiong Timon Ebosetale Wilson

21CH030004

Management Information Systems

BUS211 ASSESSMENT

A. The Leadership and Management Theories

Leadership and management have various meanings depending on the people who define them
and their purpose. The theories and principles governing leadership and management as a whole
are the only constants in these two factors. As a result, it is critical to comprehend and explain
these principles in detail, as follows.

The Theories of Leadership

1. Trait Theory: The trait theory of leadership holds that certain inborn or innate qualities
and characteristics make anyone a leader. Personality traits, physical traits, intelligence traits,
and so on are examples of such attributes. Early thinkers believed that leaders emerge with
distinct physical and psychological characteristics that distinguish them from non-leaders.
Trait theories have rejected the notion that leadership skills are inherited or learned.

2. Behavioral Theory: The Behavioral Leadership theory focuses on how leaders behave
and assumes that these traits can be imitated by other leaders. It is also known as the style
theory, and it proposes that successful leaders are not born, but can be developed through
learnable behavior .

3. Contingency Theory: According to the Contingency theory of leadership, strong

leadership is dependent on the situation. It is determined by whether a person's leadership
 style is suitable for the situation. According to this theory, a person can be an effective leader
in one situation but an ineffective leader in another.

4. Transformational Leadership: Transformational leadership is defined as a style of

leadership that has an impact on both individuals and social systems. It produces valuable
and positive change in followers in its ideal form, with the goal of developing followers into
leaders.

5. Transactional Leadership Theory: According to transactional leadership theory, managers

give employees the desired outcome in exchange for getting what they demand. It claims that
employees are not self-motivated and that they require structure, instruction, and monitoring
in order to complete tasks correctly and on time.

6. Invitational Leadership Theory: Invitational Leadership is a practice theory defined as

"a powerful process of communicating caring and appropriate messages intended to summon
forth the greatest human potential." It is also used to identify and alter the forces that defeat
and destroy potential.

As there are leadership theories, the same can be said for the management theories
introduced by Henri Fayol, such as.

The Theories of Management

1. Division of Work: The first management principle is based on the theory that by
assigning a specific task to an employee, they will become more efficient and skilled at it. In
contrast, a multitasking culture assigns a large number of tasks to an employee at the same
time.

2. Authority and Responsibility: According to this Management Henry Fayol principle, a

manager must have sufficient authority to ensure that his instructions are carried out by his
employees. Managers would be powerless to effect change if they lacked authority.

3. Discipline: According to this Management Henry Fayol principle, a manager must have
the necessary authority to ensure that his instructions are carried out by his employees.
Managers would be powerless to accomplish anything if they lacked authority.

4. Unity of Command: This principle states that the organization should have a clear chain
of command. Employees should be clear about who they must obey. An employee should
only take orders from one manager, according to Fayol. Authority, discipline, and stability
 are jeopardized when an employee reports to two or more managers. This will also result in a
breakdown in the management structure and employee burnout.

5. Unity of Direction: This Administration According to the Henry Fayol principle, work
should be organized so that employees work in harmony toward the same goal, using one
plan, and reporting to one manager. For example, if your marketing activities include
advertising, budgeting, sales promotion, and so on, one manager should oversee all
marketing activities.

6. Esprit de Corps: The phrase "Esprit de Corps" translates as "Team Spirit." According to
this Management principle, management should strive to promote employee unity, morale,
and cooperation. Team spirit is extremely beneficial to the organization. Employees who are
happy and motivated are more likely to be productive and efficient.

7. Centralization: Centralization is defined as the concentration of power in the hands of the

authority and the use of a top-down management approach. This authority is distributed to all
levels of management in decentralization. No organization can be completely centralized or
decentralized in the modern era. To use it effectively today, a balance of centralization and
decentralization is required. The degree to which this balance is achieved varies by
organization.

B. Application of the Theories in Multinational Organizations

The Multinational Organization in focus is Adidas, a sneaker and clothing brand that was
founded in Germany in 1949. Its main goal from over the past 75 years is to create and change
the aspect of the fashion and sports industry through talented and visionary creators and leaders.
Their mode of operations complies with several of the theories of the leadership and
management comply with the vision of Adidas. Adidas use the trait theory to recruit suitable
employees and leaders who are nurtured with diverse mindsets and creative talents. To make this
possible, there are four basic groups that aid in achieving their goals.

· The Core Leadership Group (CLG): These consist of 20 individuals who hold the
responsibility of critical decisions in the company

· The Extended Leadership Group (ELG): This group consists of 110 individuals
who are in charge of marketing strategies.
 · The Global High Potential Group (GHPG): This group are responsible for the
development of the next generation of leaders who will be involved in more
demanding tasks. This is possible using the Transformational Leadership theme.

· The Local High Potential Group (LHIPO): This group are responsible for the
recruitment of local employees and potential leaders. Using the Invitational Theory
method, candidates are trained for international positions in the future.

These basic group’s function using the Unity of Direction method as all the groups are
operating towards one goal as well as the Esprit de Corps method of management because
without a positive mindset in the business, problems will begin to occur. These group’s main
purpose in the company Is to create a constant supply of talented and gifted leaders through
the Trait and Style Theories. These leaders will be able to accomplish the given goals and
vision of the company at large, creating a successful future for the organization.

C. The Skills and Measures Required to Manage Multinational Organizations

The methods used in Adidas to manage and lead the company involves the following.

· Democracy

· Formal and Informal Communication

· Establishment of core values

The nature of management is focused solely on a democratic system in which the members of the
groups earlier mentioned can be allowed to interact, discuss and decide on the mode of business
and the future actions to be taken. In a way, this allows for the principles of Authority and
Responsibility to take place. This is because although they make decisions together, there is an
understanding of the responsibilities that each individual has.

Another method that revolves around the leadership of Adidas is the communication between
another. In the company, communication is key to the success of the organization. Whether it is
in formal meetings or informal discussions among their peers, communication is vital for the
growth of the organization. The ability to have good communication with the workers around
can be enough to seal a potential big-money contract deal that can boost the reputation of the
organization.

Another important method that revolves around Adidas is their establishment of core values. In
an organisation it is very important to be able to know the values that are being used to achieve
the long-term-goal. Adidas have 3 core values which are also known as the 3 Cs behind
leadership namely:

· Collaboration

· Confidence and,

· Creativity

Adidas see Collaboration not just as a mix of different ideas that create a masterpiece, but as a
trait that can drive leaders forward even in hard times. Collaborative leaders are very quick to
problem solving and always ready to come up with solutions.

Confidence is a core value that represents a trait in a leader that shows a leader that isn’t afraid of
making smart and daring decisions for the greater good of the organization.

Creativity in a leader is simply his ability to think outside the box. A creative leader is a huge
asset to the organisation as he can be able to create long term ideas and solutions without the aid
of the rival companies previous success.

REFERENCES

a. ·
https://www.researchgate.net/profile/Allah-Nawaz-2/publication/293885908_Lea
dership_Theories_and_Styles_A_Literature_Review/links/
56bcd3ad08ae9ca20a4cdea2/Leadership-Theories-and-Styles-A-Literature-
Review.pdf
2. · https://www.wgu.edu/blog/leadership-theories-
styles2004.html#openSubscriberModal
3. · https://www.futurelearn.com/info/courses/the-evolution-of-management/0/steps/
90266#:~:text=The%20trait%20theory%20of%20leadership,intelligence%20factors%2C
%20and%20so%20on.
4. · https://www.simplilearn.com/principles-of-management-by-henri-fayol-article
5. · https://www.betterup.com/blog/contingency-theory-of-leadership#:~:text=The
%20contingency%20theory%20of%20leadership%20states%20that%20effective
%20leadership%20is,an%20ineffective%20leader%20in%20another.
6. · https://online.stu.edu/degrees/education/what-is-transactional-leadership/
7. · https://report.adidas-group.com/2020/en/group-management-report-our-company/
our-people/role-model-leadership.html
8. · https://www.coursehero.com/file/97371675/MGT-MAGAZINEdocx/
9. · https://www.gameplan-a.com/3Cs-leadership