Principles and Practices of Leadership in an Organization

Answer :

Introduction to Leadership Principles

Leadership plays a crucial role in the success of business organization as it develop different skills within employees which leads to their development. This role is played by leader who set specific goals for the workers in order to achieve their individual as well as organizational goals and objectives. Management on the contrary side is different role which is played by the head of department or top executives. Their main role is to achieve the mission and vision of the venture by using different resources efficiently and effectively. This present study emphasizes on different leadership theory like trait and contingency so that organization can implement the same in order to get flexible style within the enterprise. Moreover, it is essential for leaders as well to follow different types of leadership skills as it will increase motivational level, flexibility and trustworthy between employees in firm.

This present document emphasize on PepsiCo Foods Mexico where the Consumer Strategic Insights director Jorge Rubio wants to change its part and focusing on developing flexible style of leadership within the venture. Further, changes from marketing research department to consumer strategic insights bring significant transition in the leadership style and management of the organisation. The focus shifts from production oriented working to the increment of customer satisfaction. Rubio major focus is on choosing different leadership styles which will act as a motivational booster for employees and with this there will be flexibility and clarity within the business venture. Director will also focus on undertaking different leadership theories as it will help venture in taking fast decisions within department.

Trait Theory of Leadership

According to Owen, trait theory of leadership believes that people are either born or made and they possess certain traits which makes them different as they are capable of performing different leadership role within the business venture. This theory also emphasizes on analyzing mental, physical and social characteristics in order to gain understanding relating to the traits which are present within the individuals. On the contrary side, Straf and Citro, argued that individuals have different perception in performing their duties and their knowledge/skills makes them different from the other individuals who are working within the venture. Further, leaders need to have strong personality with positive ego and self confidence. Leader further need to act as a inspirational which gives employees strength and boost their morale so that they will start working with best of the efficiency to achieve their individual or organizational goals and objectives.

Transformational Leadership Theory

From the view point of Kurucz, Wheeler and Colbert, transformational theory was proposed in the year 1970 in order to identify the process so that effective relationship can be build between employees who are working within the venture. This leadership theory also help enterprise to develop flexibility in working style, trustworthy relationship among subordinates, etc. so that goals and objectives can be easily achieved. Further, transformational leadership also boosts employees morale and individual is able to work with best of the dedication in order to achieve the stated mission and vision for the venture. However, Manion, argued that it is important for modern leaders to consider different factors and also include the followers for making effective decisions for the venture. Apart from it, employees are always been the base for organization success and they should involve employees in making decision for business enterprise.

This theory majorly focus in getting active participation of employees so that new ideas can be taken for making better and effective decisions. Moreover, cited firm also has skilled and mutli-talented staff who have specific knowledge and have better concepts in solving problems which organization is facing. With their valuable suggestion organization will also be able to make effective policies and decisions for the venture. With this, employees will be motivated as well so that they will be able to achieve their goals and objectives. The main aim of implementing this theory is that leaders are able to make modification in their followers by making necessary changes in the nature and personalities. These theories are also considered as highly flexible and therefore business venture need to choose the best targets as well as opportunities which they can attain. Hence, Northouse, stated that transformational leader consist of different quality, traits, attitude, behaviour which help him to motivate the workers in achieving their individual and organizational goals and objectives. This theory therefore focuses on developing effective relationship between the superior-subordinate and also with the leaders.

Jorge Rubio wants that their employees should work with best of their dedication and in comfort zone so that they will be relaxed and have homely environment. The interview with the director took place at the brain spa in order to conduct session for customer qualitative studies. By seeing the office, no once can say that it belongs to PFM. No one comes in office uniform or either wearing formal. Apart from it, there exist different chairs, pillows futons, etc. Director only wants that employee gives best of the result to the venture and they will take care of their motivational level. Moreover, being a global organization they have various employees who are giving their productive services across the globe.

Alsagoff and et. al., stated that leadership theory plays an important role in developing motivational level for employees so that the manpower can contribute their best in order to improve organization efficiency and productivity. This leadership theory also emphasizes on developing effective bond with the employees so that their morale gets high and they contribute with best of their dedication. Further, leader also focus on retaining employees as turnover will act as a burden and flexibility in working will help them to meet their personal and professional life efficiently and effectively.

Leadership Skills

From the view point of Gonzales and Lambert, Leadership skills is the ability to lead efficiently within venture as it is based on number of key skills. These skills are implied on individuals in order to motivate and enthuse them. These skills need to be consider by leaders in order to make the marketing department more flexible and simple. Some skills which leader has to develop is thinking skills. It is necessary for leader to evaluate different situations and plan strategies so that organization goals and objectives can be achieved. Communication skills also plays a crucial role as many times the information so passed is misinterpreted by the employees and due to this confusion and conflicts rise in the enterprise. With better communication skills, proper and clear information is passed which will make information more effective and with that employees will be able to accomplish their task in more effective manner.

Farok and Garcia, stated that leaders within the venture also need to enhance their listening and presentation skills as it will help them to coordinate effectively with their workforce in order to attain specific objectives. Therefore, by developing all these skills, cited firm will be able to develop new leaders which will emphasize on increasing the revenue and productivity. These skills will develop worker and help him/her to become a leader. In relation to the scenario, Mr. Jorge Rubio need to adopt various skills and competencies so that he can bring flexibility within the marketing research department. Apart from this, effective leadership competencies also need to be taken into consideration like managing self, people, projects, programs and leading organization etc. This will help venture to achieve organization goals and objectives. Further, with the implementation of the same, firm will be able to get a competitive edge over the rival ventures who are performing within the same industry.

Chhokar, Brodbeck and House, stated that Leader has to become capable so that he can manage themselves effectively. Apart from this, they need to be polite, honest and ethical in order to carry operations efficiently and effectively. Leaders further need to develop interpersonal and communication skills as with that he will be able to solve organizational problems and conflicts precisely. Day and, stated that managing people and organization is important for leader in order to improve coordination and also to increase the organization profits and turnover.

Apart from this, if leaders within the PFM not able to follow precise leadership skills then the organization performance will collapse and their competitors will get ahead of them. Moreover, employees will further get demotivated and they will not able to function with best of their efficiency and capability. Daft, said that employees are organization real assets and top executives along with Human Resource department need to take crucial steps in order to satisfy their needs/wants and also give them full satisfaction. If firm will take care of their employees then it is obvious thing that employees will definitely take care of the customers. Moreover, employees motivational level plays a crucial role and organization has to take efficient steps to retain them. Further, if any issues persist then it is responsibility of leader to take effective decision and also to solve the matter as soon as possible. Further, different types of leadership styles can be followed within the venture and these are...


Owen, stated that autocratic leadership style is complex and old tradition type as in this, leaders and managers takes the decision without any input of individuals. They usually take the decision of their own and direct employees to follow the same. In this, no employee challenge the decision of autocratic leader. In this type of leadership employees gets demotivated as they have to follow the decisions which is so made by the leaders.


In this type of style, leaders usually gives preference to the inputs given by the team members. This style is much more popular and organization focuses on implementing the same. Manion, stated that employees are also involved at the time of effective decision making as they are multi skilled and have effective knowledge of situations which stepsister within the venture. With this, they get motivated and are able to give their best in order to achieve their individual as well as organizational goals and objectives.

Laiseez Faire

In this style, leaders give complete freedom to their employees for the task which is assigned to them. With complete autonomy, they are able to work with best of their efforts because they are highly skilled and have in depth knowledge of the concepts. Leaders do they take feedback and suggest them to make certain changes so that the task is accomplished properly. Northouse, argued that with no leadership and supervision from leaders, work can lead towards poor production and increases cost for the venture.

Leadership Skill Needed to Change

From the above study of different types of leadership styles and their impact on the selected organization certain inferences are made. According this it can be stated that organization adopt pragmatic approach and inculcate changes in accordance to the changing situations. In that regard, adopting democratic style of leadership will prove to be lucrative for the organization.

Such as changing scenario demands the employee engagement in the decision making process and provide effective solutions and ideas. Hence, inculcating this leadership skill at all the levels of organization such as team leaders, service managers and junior and middle level managers enable to derive desired goals and targets. Along with this there are cons of using this style of leadership such as at the time of emergency and crucial decision making there is the need of expert advise when it will not prove to be useful.

Competency Framework of Leadership

Roe, articulated that competency framework can help PFM to focus on three different level of management. These are discussed down under

Team leaders

Team leader plays an important role as they manage the operations efficiently and focuses on achieving the desired goals and objectives.

Service managers

These employees bring day to day operational management and take feedback from their workforce so that organization strategic mission and vision gets achieved on time.

Junior and middle level managers

These managers undertake diverse activities for strategic work practices so that work gets completed on specific time. By taking help of this model, PFM will get lot of benefit and their strategic aims and objectives will be fulfilled. This is also treated as an important strategy in order to drive cultural change within cited venture and hence it helps PepsiCo in improving their performance.


From the above report it is clearly evident that leadership and management plays a crucial role in the success of business venture. Further, this report also showcase that effective leadership style will act as a moral booster for employees and with that they will be able to achieve their goals and objectives. Different leadership style has also been discussed which will give reader a clear idea that PFM implements democratic leadership style. A leader needs a certain set of skills which proves to be lucrative in accomplishing the desired objectives and goals. Such as technical skills enables a leader to have the in-depth understanding of all the components associated with the working and hence it is able to supervise for goals and targets effectively. Further, conceptual skills enables a leader to take decisions in slew of tasks more effectively.


  • Alsagoff, L. and et. al., 2012. Principles and practices for teaching English as an international language. Routledge.
  • Chhokar, J. S., Brodbeck, F. C. and House, R. J., 2013. Culture and leadership across the world: The GLOBE book of in-depth studies of 25 societies. Routledge.
  • Daft, R., 2014. The leadership experience. Cengage Learning.
  • Day, D. V. and, 2014. Advances in leader and leadership development: A review of 25years of research and theory. The Leadership Quarterly.
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