Sloan,Drucker, Porter and Matsushita have all made important contributionsto economic and business management. Sloan introduced the concept ofmanagerial composition in control and freedom and the concept ofcoordination of coherent preparation and management. The firstconcept on composition is a direct response to modern calls foremployee empowerment. However, the concept is vague as it is notclear how much control and command is optimal or detrimental to afirm (Bowen & Lawler 1995). Similarly, Matsushita identifies theimportance of empowering employees to fight poverty in order to driveperformance and innovation. Drucker offers a different view of firmswhich perceives then as social institutions that can nurtureemployees psychologically and emotionally through a right environmentsuch as empowerment. However, many organizations are unable to fullyempower employees. Most managers and leaders are afraid to delegatedecision making and authority as they are likely to be heldresponsible of any undesired outcomes (Gao etal.2011). One way address this fear is to match delegated power anddecision making with abilities of employees and provide guidance,training and needed resources as supported by Weber(Johnson 2004). All these leadership decisions must be made with knowledge of Portersfive forces analysis which further captures the relevance of contextin any organizational leadership discussions.
Weberidentified organizing power and authority according to abilities as akey instrument in leadership and management. He identified threetypes of authorities namely traditional,charismatic, and legal-rationalauthority.WhatI find most enlightening is the fact that Weber recognized that theseleadership approaches were not applicable in a blanket manner but arerather influenced by organizational structure and personality ofleaders. He believed that charisma is critical to leadership. Nancyetal.(2000) notes that the demand for continuous change in the 21stcentury can best be met by charismatic leadership. Other thancharisma, there are some immutable leadership traits inherited oringrained such as intelligence, physical appearance,authoritarianism, energy etc that that make good leaders (Holt &Marques 2012). This view of inborn leadership skills has beencontested by behavioral theorists such as Weber. A newer approachlays more emphasis on the leadership style and context. Vacarro andcolleagues (2010) for instance indicate that small organizations canbenefit best from transactional leadership to achieve managementinnovation where relatively larger and more complex organizationssuch as multinationals are better suited to transformationalleadership to cater to complexity.
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