Application of Leadership and Management Theories in Hub International Ltd

CEO’s Transformational Leadership Style 23 Application of Management Theories in Hub International Ltd. 25 Bureaucracy Management Style in Hub International 24 Conclusion 29 References 29 Introduction In the modern organizations, application of leadership and management theories is crucial towards the attainment of set short-term and long-term organizational goals and objectives. Leadership and management are crucial factors in organizations and should be given sufficient consideration. This paper will illustrate how the CEO of Hub International Limited applies leadership theories to enhance the success of the organization. In addition, the paper will also show how management theories are utilized for the operational efficiency of Hub International Ltd. d. The firm is also focused to empower its employees toward learning, growing, and making a distinct difference in their societies.

The firm has five core values; service, integrity, entrepreneurship, teamwork, and accountability. According to Bloomberg LP (n. d. Description of Leadership Leadership is described as the pursuit which encompasses leading or organizing a group of individuals. In general, leadership encompasses various set ups from leading and organizing people by formulating clear vision, mission and motive, offering clear information, knowledge and ensuring balance of distinct views. These actions are undertaken in order to address the perspectives of all corresponding members. According to Day (2014 p. 12), leadership is depicted in various forums such as corporate sector, government agencies, and sports. Nevertheless, the experiences and situational conditions play a vital role in shaping the success of a leader (Day, 2014 p. Leadership theories attempt to illustrate if specific personality traits make individuals better suited to leadership roles.

The theories aim at showing if characteristics of prevailing situations make it more likely that particular people will take charge over leadership concerns (Certo, 2018 p. The most common leadership which will be discussed herein include the Great Man theory, trait theory, behavioral theories, participative theories, contingency theories, transactional theories, and transformational theories. Great Man Theories Great man theories assume that great leaders are born with the appropriate internal leadership traits. Trait Theory The trait leadership theory is founded on the traits of many leaders – successful and unsuccessful. The trait theory is mostly used to predict effectiveness in leadership. The trait theory is similar to the great man theories in that it assumes that individuals inherit particular traits and qualities which make them better suited to leadership (Chand, 2015 p.

As a result, trait theory identifies a certain behavioral or personal characteristic shared by various leaders (Chemers, 2014 p. Some of the traits exhibited in trait theory are such as self-confidence, courage, and extroversion. The contingency theories are beneficial in that they take control of various conditions in a general approach. The theories also enhance thinking about a certain element of a leader-led scenario that requires more intense consideration (Ghasabeh et al. , 2015 p. However, the contingency theories are problematic in that they might be expressed in a general approach without a particular applicative element. Strategic Contingencies Theory The strategic contingencies theory looks at the tasks that require to be done in the form of issues to be solved. The leaders should also be able to recognize the employees with rewards for outstanding performance and punishments for continued adverse outcomes in the workplace.

According to Fiedler’s contingency theory, leaders depend on their psychological disposition or personality. This enables them to lead other people (Rahman, 2016 p. Fiedler also stated that leadership approach is fixed and can be assessed through the Least-Preferred Co-worker (LPC) Scale. Under the aspect of situational favorableness using Fiedler’s theory, there are three important factors. For example, if a low-LPC leader is given authority over a group with positive relations and which does unstructured tasks, the model recommends that the best resolution would be to replace the low-LPC leader with a high-LPC leader (Rahman, 2016 p. However, this would be a difficult decision for organizations to make because it would mean that their leaders would constantly be exchanged if they do not match the leader-member relations.

Hence, the Fiedler contingency leadership theory would be appropriate if it considered the application of a different leadership style rather than replacing a low-LPC leader with a high-LPC leader. Situational Theories Situational theories hold that leaders select the most appropriate course of action depending on the situational elements. The situational leadership theory is known as the Hersey-Blanchard situational leadership model (Landis, Hill & Harvey, 2014 p. In the other hand, people-oriented leaders focus on behaviors which make sure that the inner requirements of the group members are considered. Even though they may focus on tasks and outcomes, they achieve these goals using unique approaches. As a result, people-oriented leaders tend to consider behaviors which encourage, observe, listen to, coach, and mentor other individuals in the workplace.

Under the behavioral leadership theory, the element of management/leadership grid is taken into consideration. The managerial grid model encompasses five different leadership approaches (Lussier & Achua, 2015 p. • The team leader is seen as the most suitable behavioral leader. The leaders have great concern for both employees and organizational productivity. As a result, they promote formation of cohesive teams and enhance employee motivation. They attract highly skilled employees with low employee turnover and this translates to increase in long-term organizational productivity. Participative Leadership Theory Participant leadership theory focuses on the involvement of various participants. The leaders leave the entire process to the group. Transactional Leadership Theory The transactional leadership theory holds that leaders focus on directing and motivating followers by appealing to their individual self-interest.

The theory argues that leaders enhance compliance from their followers by enacting punishments and rewards. Leaders who ascribe to the transactional leadership theory tend to consider increasing the effectiveness of established procedures and routines. They are more focused on adhering to set rules and regulations other than making shifts to the organizational structure. This aspect brings about improved survivability of organizational plans. Due to the element that these theories are adaptive, they tend to be easy to tailor when supporting the attainment of the most pressing requirements of people. Transformational leadership theories argue that individuals are motivated by the activity that ought to be carried out. As observed in the model above, there are four elements of transformational leadership namely intellectual, individualized, inspirational, and idealized leadership.

Development of Management Theories In the contemporary society, management is depicted as both an art and a science. • The theory argues holds that responsibilities should be delegated to the workers (Waring, 2016 p. This requires the management to train the subordinates on how to perform certain tasks. According to the scientific management theory, each subordinate plays a vital role in the organization’s success and efficiency in operations. • The management is also required to monitor performance for all the employees. This aspect would make sure that each worker is undertaking assigned tasks appropriately. The theory might also be biased in how it presents the mechanical nature of people. Hence, it does not value individuals’ side of work such as workplace satisfaction and motivation towards productivity and efficiency in the organization.

Administrative Management Theory The administrative management theory tries to obtain a rational approach of designing a firm as a whole. The theory gives a focus on formalization on administrative design, a precise division of labor, and delegation of authority and power to subordinates based on their duties. According to the administrative management theory, a manager has six major functions: forecasting, planning, organizing, commanding, coordinating, and controlling (Wheelen et al. Also, the managers should be mentally qualified in that they should be willing to adapt to issues and cope up situations. Human Relations Management Theory The human relations management theory focuses on the quality and nature of relationships between subordinates and managers in a firm. The theory considers the human perspective of employees other than their advantages as assets or human capital to the firm.

Managers attempt to value existing relationships to their direct reports. They offer a lot of value on how the subordinates feel about their presence to the organization. According to the systems management theory, organizations have various components such as sub-system, synergy, open and closed systems, system boundary, flow, and feedback. The sub-system refers to an organization’s department (Bratton & Gold, 2017 p. Feedback refers to the environmental response to the organizational outputs. In the presence of these components, the management is required to ensure appropriate coordination of the various systems in the organization. Bureaucratic Management Theory The bureaucratic management theory views bureaucracy in a positive perspective. In addition, the theory engages a lot of paperwork and this leads to wastage of money, effort, and time (Burke, 2017 p.

It also tends to ignore employees’ commitment and dedication. This is triggered by the tendency of the theory to give a lot of consideration on employees’ technical qualifications. The scope of human resources is not recognized because of the absence of policies which may encourage the formation of informal groups in the organizations which follow bureaucratic management theory. Management Theory X and Theory Y The management theories X and Y are crucial in forming the basis of managers. Application of Situational Leadership by CEO Marc I. Cohen First and foremost, it is worth to note that Marc Cohen serves in Hub International Ltd. ’s Executive Management Team as the CEO of Hub International Ltd. This means that he serves a leadership position which greatly influences the success and efficiency of the organization.

In this case, the CEO of Hub International Ltd does not ascribe to a single leadership style (HUB International Limited, n. The utilization of the administrative managerial strategy enables the CEO to cope up with various situations which affect the organization both internally and externally. The leader also applies the element of delegating of duties and responsibilities within the firm. In the delegating approach, members of the group are assigned various tasks and allowed to make decisions (Smallbone & Cale, 2015 p. However, in the situational theories, the CEO should be considerate on the individual group member’s level of maturity. Maturity level is crucial in that it evaluates a person’s capability to accomplish a certain workplace mission. Hub International Ltd. CEO’s Transformational Leadership Style The team-leading aspect of Marc Cohen has enabled him to serve as a transformational leader.

The CEO works closely with other members of the executive and Hub International Ltd. ’s board directors (HUB International Limited, n. d. The way in which the aspects are applied is described below; • In the intellectual stimulation, the leader values autonomy and creativity among their followers. The leader supports their followers by engaging them in decision-making processes. The CEO stimulate the followers’ efforts, challenge their assumptions, and solicit ideas from the followers without intensive criticism (Northouse, 2018 p. • The transformational leadership models assumes that the followers have particular desires and needs. For instance, the model considers that the some of the followers might be motivated by financial factors and others motivated by need for change (Dvir et al. are given hierarchical roles.

For instance, the insurance brokerage firm has the highest executive leader Martin P. Hughes as the Executive Chairman of the Board of Directors. This executive obtains organizational reports from the firm’s Vice Chairman (Richard A. Gulliver) (HUB International Limited, n. Since bureaucracy is characterized by hierarchical structure, staff expertize, and formalized steps, the management approach remain suitable for Hub International as a large-scale firm (Thorpe, 2016 p. The organization depends on orderliness, timeliness, and conformance for efficiency in their operations. In addition, bureaucracy is efficient for Hub International Ltd because most of its tasks are routine in nature and embrace high levels of formalization. The firm’s employees are satisfied with high levels of control and formalization. Hence, despite criticism that bureaucracy is not applicable in contemporary organizations, it is evident that the management approach is effective in Hub International Ltd.

For instance, the theory follows a hierarchical management structure. In this case, every level controls the levels below and is controlled by the levels above. Hence, responsibilities, powers, and authority are appropriated described for every position. The theory subscribes to the element of division of labor (Geisler & Wickramasinghe, 2015 p. This implies that roles are precisely defined and subordinates become skilled due to specializing in undertaking a certain task. ’s approach. In many cases, concerns have been expressed over the approach that it restricts the employees’ jobs and limits the mobilization of numerous intelligence. The success of the bureaucracy approach is greatly affected by how its regulations are implemented in relation to the quality of Hub International Ltd. ’s labor force. Conformation through written rules, instructions, and procedures are structured to help employees improve their duties (Thorpe, 2016 p.

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