Principles and Practices of Leadership in an Organization


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Introduction to Leadership Principles

Leadership plays a crucial role in the success of business organizations as it develops different skills within employees which leads to their development. This role is played by a leader who sets specific goals for the workers in order to achieve their individual as well as organizational goals and objectives. Management on the contrary side is a different role which is played by the head of the 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 different leadership theories like trait and contingency so that organizations can implement the same in order to get a flexible style within the enterprise. Moreover, it is essential for leaders as well to follow different types of leadership skills as it will increase the motivational level, flexibility and trustworthiness between employees in the firm.

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This present document emphasizes PepsiCo Foods Mexico where the Consumer Strategic Insights director Jorge Rubio wants to change its part and focus on developing a flexible style of leadership within the venture. Further, changes from the marketing research department to consumer strategic insights bring significant transitions in the leadership style and management of the organisation. The focus shifts from production-oriented working to the increment of customer satisfaction. Rubio's 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. The director will also focus on undertaking different leadership theories as it will help venture into making fast decisions within the department.

Trait Theory of Leadership

According to Owen, the trait theory of leadership believes that people are either born or made and they possess certain traits which make them different as they are capable of performing different leadership roles 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 perceptions in performing their duties and their knowledge/skills make 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. Leaders further need to act as inspirational which gives employees strength and boosts 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 viewpoint of Kurucz, Wheeler and Colbert, the 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 individuals is able to work with the best of their 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 focuses on getting the active participation of employees so that new ideas can be taken for making better and effective decisions. Moreover, the cited firm also has skilled and multi-talented staff who have specific knowledge and have better concepts in solving problems which the organization is facing. With their valuable suggestions 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 highly flexible and therefore business ventures 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 their employees should work with the best of their dedication and in their comfort zone so that they will be relaxed and have a 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 one 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 developing effective bonds with the employees so that their morale gets high and they contribute with the best of their dedication. Further, leaders 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.

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Leadership Skills

From the viewpoint of Gonzales and Lambert, Leadership skills are the ability to lead efficiently within a venture as it is based on a number of key skills. These skills are applied to individuals in order to motivate and enthuse them. These skills need to be considered by leaders in order to make the marketing department more flexible and simple. One skill which a leader has to develop is thinking skills. It is necessary for leaders to evaluate different situations and plan strategies so that organisational 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 arise 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 tasks in a 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 the worker and help him/her to become a leader. In relation to the scenario, Mr Jorge Rubio needs 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 leading organizations etc. This will help the venture to achieve organization goals and objectives. Further, with the implementation of the same, the firm will be able to get a competitive edge over the rival ventures that are performing within the same industry.

Chhokar, Brodbeck and House stated that Leader has to become capable so that they can manage themselves effectively. Apart from this, they need to be polite, honest and ethical in order to carry out operations efficiently and effectively. Leaders further need to develop interpersonal and communication skills so that they will be able to solve organizational problems and conflicts precisely. Day and stated that managing people and organization is important for leaders in order to improve coordination and also to increase the organization's 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 be able to function to the best of their efficiency and capability. Daft, said that employees are the organization's 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 the firm will take care of their employees then it is an obvious thing that employees will definitely take care of the customers. Moreover, employees' motivational level plays a crucial role and the organization has to take efficient steps to retain them. Further, if any issues persist then it is the responsibility of the leader to make effective decisions 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 traditional 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 challenges the decision of an autocratic leader. In this type of leadership, employees get demotivated as they have to follow the decisions which are so made by the leaders.


In this type of style, leaders usually give preference to the inputs given by the team members. This style is much more popular and organizations focus 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 the best of their efforts because they are highly skilled and have in-depth knowledge of the concepts. Leaders 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 to this, it can be stated that organizations adopt a pragmatic approach and inculcate changes in accordance with the changing situations. In that regard, adopting the 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 enables one 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 for expert advice when it will not prove to be useful.

Competency Framework of Leadership

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

Team leaders

The team leader plays an important role as they manage the operations efficiently and focus 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 the help of this model, PFM will get a lot of benefits and their strategic aims and objectives will be fulfilled. This is also treated as an important strategy in order to drive cultural change within the cited venture and hence it helps PepsiCo in improving their performance.

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From the above report, it is clearly evident that leadership and management play a crucial role in the success of business ventures. Further, this report also showcases that an effective leadership style will act as a morale booster for employees and with that, they will be able to achieve their goals and objectives. Different leadership styles have also been discussed which will give the reader a clear idea that PFM implements a 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 enable a leader to have an in-depth understanding of all the components associated with the work and hence it is able to supervise for goals and targets effectively. Further, conceptual skills enable a leader to make decisions in a 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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