MANAGEMENT AND LEADERSHIP – CHALLENGES AND

PRACTICE – CW2

Student Number: 100502389

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 Executive Summary
This study deals with different kinds of leadership with respect to the situations being faced
by the company. The different types of leadership style practised in the General Electric to
achieve its objectives are autocratic style, democratic style, laissez-faire style,
transformational leadership style and some other styles as well. This study also critically
assesses the prevailing leadership style within the company along with the stakeholder
expectations and needs for leadership management has also been discussed in the study. The
company’s ethical and value-based approach has also been discussed. The General Electric
Company abides by the ethical requirements and all the necessary legislation along with
regulations to promote cultural and ethical values.

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 Table of Contents
Introduction................................................................................................................................3

Background information of the company...................................................................................3

1. Different types of leadership styles required in an organisation to achieve organisational

objectives....................................................................................................................................3

2. A) Critically assessing the prevailing styles of leadership in General electric in terms of

organisational objective and performance..................................................................................7

2. B) Discussing the ways by which the leaders of an organisation can establish a culture of
mutual trust, professionalism, support and respect within the team..........................................9

3. A) Leadership approach in an organisation with respect to ethics and values.....................10

3. B) Impact of culture, values, legal, the regulatory and ethical requirement with respect to
ethics and values.......................................................................................................................11

3. C) The organisation’s stakeholder expectations and needs of leadership............................12

Conclusion................................................................................................................................13

Recommendations....................................................................................................................14

Reference List..........................................................................................................................15

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Introduction

Leadership practices and challenges are more active, practical and address a vocational aspect
of leadership. Encountering challenges in leadership practices are very effective in
developing leadership capacity and enhance the employability. Through action-oriented
leadership practices, it will help to develop an advanced understanding regarding future work
and for meeting the challenges related to leadership styles. This study has been prepared
based on the context of leadership styles performed in the organisation, General Electric.
Accordingly, the study will focus on the challenges that are experienced by exercising
prevalent leadership styles within the organisation. In due course, the study will discuss the
different types of leadership styles followed by the General Electric Company for achieving
tremendous growth in all segments of the US economy. Furthermore, the study will describe
the ethical values and analysis of the value-based approach of leadership despite cultural
differences prevailing in the industry. Thereafter, the stakeholder expectations and needs for
leadership management have also been discussed in the study.

Background information of the company

General Electric is an American based multinational company, headquartered in Boston and

operates in various segments like aviation, renewable energy, power, venture capital finance,
oil gas, lighting, healthcare and digital industry. The General Electric Company was
established on 15th April 1892 and is presently a digital global industry (www.ge.com,
2019). The company is renowned to be the 18th largest industry in terms of receiving gross
revenue of $121.6 billion during the year 2018 (www.ge.com, 2019). From a recent study, it
was observed that the company is engaged in developing partnerships on the basis of its
subsidiary in latest sell-offs. The GE Company has international conglomeration with
American partners industry (AIP) for producing an advanced energy management system.
Despite incorporating situational challenges in leadership styles, General Electric Company
has been able to establish itself in the global competitiveness.

1. Different types of leadership styles required in an organisation to achieve

organisational objectives

The different types of leadership style practised in an organisation to achieve its objectives
have been presented as follows.

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Autocratic Leadership Style
Autocratic leadership means a person in a position of authority shows complete control over
his employees or subordinates working under him. According to the words of Iqbal et al.
(2015), an autocratic leader governs the tasks that need to be completed rather than
suggesting with the subordinates. The autocratic leadership styles keep a tight leash on his
employee's action. This style of leadership helps to monitor the progress of the employees
and forces them to achieve the organisational goal within the given span of time. The
autocratic leaders take a decision based on their judgements and ideas without ever
consulting his subordinates or employees. However, as commented by De Hoogh et al.
(2015), the autocratic style of leadership is flawed as it only works if the leader is present and
in the absence of leader no task is completed as no one in authority is there to take any
decision. The autocratic leaders are the one that makes all the decision regarding deadline and
short term goals that need to be achieved by the employees working under him. General
Electric uses a variety of leadership style based on different situations faced by them. The
autocratic style of leadership is used by General Electric to monitor and maintain the status
quo of the employees and their working environment.
Democratic Leadership Style
The democratic style is a type of leadership where members take part in the decision making
process. As opined by Amanchukwu et al. (2015), the democratic style of leadership is
usually the most effective style as the members of a group can also give their opinion in the
decision-making process. The democratic leadership involves their subordinates or
employees while making the decision regarding employees, workload and time to achieve the
goal. The democratic style of leadership encourages creativity along with rewarding it. This
style helps to increase productivity, the morale of employees and contributions of employees.
The employees are encouraged to engage in group activity along with sharing their ideas with
their team members and leaders, this, in turn, helps to provide more creative solutions to
problems. However, as commented by Cunningham et al. (2015), democratic leadership style
can cause miscommunication amongst team members and leaders. Miscommunication can
happen when a deadline is approaching or can create a state of panic while suggesting new
ideas to solve the problem. In some scenarios, team members may not be skilled or
knowledgeable enough to contribute to the decision-making process. General Electric
company uses the democratic leadership approach to boosts the morale of the employees
along with encouraging employees to contribute share the ideas with the team members. This

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helps to keep the team members in sync while providing more creative solutions for the
problems.
Transformational Leadership Style
Transformational leadership is defined as a leadership approach which causes the personal
transformation to the person following it. This type of leadership is inspiring in nature and
helps in uplifting the person following this style. According to the words of Nguyen et al.
(2017), transformational leadership is a leadership style where the leaders encourage,
motivate and inspire their subordinates or employees. The transformational leaders also help
them to grow as a person and as a team player. The transformational leaders help to
maximize the team capability and capacity along with empowering the employees. However,
as opined by Lin et al. (2015), the employees or subordinates that follow the transformational
leader might be manipulated by them along with a chance of losing their true self while being
transformed. General Electric Company uses the transformational leadership style as and
when suited by the situations faced by the company. Normally they use this style of
leadership while training new employees for the company. The transformational leadership
style helps the new employees to understand the company goals and ways to achieve it along
with helping them to become a team player and creating open communication.
Laissez-faire Leadership Style
Laissez-faire style also known as delegate style of leadership is a style of leadership where a
task is assigned to the employee along with the direction of completing the task and allows
them the freedom of taking the decision. According to the words of Skogstad et al. (2015),
Laissez-faire style provides little or no guidance to the employees working under them while
giving them full freedom of making any decision that suits the particular situations. The
leaders provide the necessary details and resources while expecting the team members to
solve the problems on their own. The power of taking the decision is given to the employees
although leaders are still in-charge of actions and decisions of the group. However, as
commented by Wong and Giessner (2018), this leadership style gives the lowest productivity
amongst other leadership styles. This works only on a group of motivated, talented and
cooperative individuals. General electric company uses the Laissez-faire style to increase the
independence factors between the team leaders and the employees. The leaders following this
style are assigned a team with talented, cooperative and motivated employees where the
employees do not require the guidance of the leaders all the time. The Laissez-faire style
helps the company to increase the productivity of the company.
Situational Leadership Style

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Situational leadership is a style of leadership which involves modifying the style of
leadership to fit the development level of the person being influenced. According to the
words of Lynch et al. (2018), the situational leaders change his style of leadership that best
suits his subordinates or employees working under him rather than employees adapting to the
team leader leadership style. The leaders just need to evaluate their surroundings along with
the situation and apply the correct style of leadership. The situational leaders need to adjust to
the requirements of the employee along with adopting the right leadership style so as to guide
the employee to greatness in achieving company goals. However, as commented by
Thompson and Glasø (2015), situational leaders may divert away from the company’s long-
term goal in achieving short-term goals. General Electric Company uses situational
leadership styles while facing different situations in achieving organisational goals.
Team Leadership Style
Team leadership style is the need of changing the leadership approach with respect to the
team’s development. According to the words of Hu et al. (2016), the team members are of the
important responsibility of team leaders as such they need to adapt to different leadership
styles that suit best for the progress of the team’s development. The team leadership deals
with forming the team, developing the team, achieving the results and maintaining team
performance. General Electric Company normally uses the team leadership style to create and
develop a new team for the organisational. The team leadership style helps the company to
form a team of talented employees under one team which, in turn, would help the company to
increase its productivity along with their efficiency.
Strategic Leadership Style
Strategic style of leadership refers to the leader’s potential to form a strategic vision for the
company or a part of the company. The strategic leaders influence and motivate others to
procure the vision. According to the words of Janssen et al. (2018), strategic leadership can
also be referred to as using the strategy in the management of the employees. The main goal
of a strategic leader is to increase productivity if the company by utilising the appropriate
strategy. Strategic leaders need to anticipate and understand the work environment. General
Electric Company uses the strategic leadership style to anticipate the work environment along
with developing a proper strategy that would help the company to increase productivity and
increase the efficiency of the company.

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 Autocratic Leadership Style

Democratic Leadership Style

Transformational Leadership Style

Laissez-faire Leadership Style

Situational Leadership Style

Team Leadership Style

Strategic Leadership Style

Figure 1: Types of leadership styles in General Electric Company

(Source: Thompson and Glasø, 2015)

2. A) Critically assessing the prevailing styles of leadership in General electric in terms

of organisational objective and performance

The following are the prevailing leadership styles followed by General Electric Company to
achieve high performance and organisational objectives:
Autocratic Leadership Style
As influenced by the view of Iqbal et al. (2015), the autocratic leadership style can be
exemplified to create policies and procedures with respect to the organisational trend. As
such, by use of autocratic leadership, it will help to establish the procedures and policies that
will comply with the goals that are expected to achieve. At the same time, autocratic
leadership involves direct control of all the activities by engaging the employees and
subordinates to participate in business activities (De Hoogh et al. 2015). As such, the team
leader and manager of GE use the autocratic leadership strategy to increase its profitability.
On the contrary, Bush et al. (2019) pinned the fact that due to the centralised form and direct
control on the business processes, it can lead to lower participation of the employees.
Therefore, the autocratic leadership style is less effective with respect to the overall
organisational performance and sustainability.
Laissez-faire Style of Leadership

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With reference to the view of Wong and Giessner (2018), the Laissez-faire leadership style
involves huge participation of the subordinates and employees in order to make a collective
decision. The leadership style is used when the employees are unable to analyse a situation
and determine the organisational requirements. When such a situation is observed within GE
workplace, the leaders work by prioritising the goals for delegating critical tasks. The
Laissez-faire style of leadership is basically renowned for easy management styles by
providing complete empowerment to the employees to take a meaningful decision. Therefore,
this type of leadership style can provide competitive aid to General Electric Company.
However, on the contrary, Skogstad et al. (2015) commented that giving complete decision-
making power to the employees can sometimes lead to a poor decision of business processes.
The reason is that some of the employees may not be able to perform well due to different IQ
levels and difference in culture.
Democratic Leadership Style
As stated by Amanchukwu et al. (2015), the Democratic leadership strategy is based on the
concept of mutual benefit as it incorporates complete participation of all the members of a
team. The democratic leadership style is highly prevalent in the present retailing industry
(Cunningham et al. 2015). The leadership strategy is used when one part of information is
with the employees and the other part of relevant information is with the team leader. As
such, the company General Electric uses this leadership strategy to ensure proper engagement
of the employees with their work and thus reducing the employee turnover. Therefore, the
democratic leadership style can ensure sustainability as a result of productivity of the
employees within the organisation. The Democratic leadership style also takes into account
developing strategies and procedures that meet with the organisation objectives and provide
competitiveness.

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 Figure 2: Effectiveness of the different type of leadership styles used in GE
(Source: Influenced by the view of Noe et al. 2017)

2. B) Discussing the ways by which the leaders of an organisation can establish a culture
of mutual trust, professionalism, support and respect within the team

There are several ways to develop the culture of mutual trust within a team. Some of the ways
are as described below:
Creating a credible culture
Credibility is the first step of developing trust with the team members (St Amant, 2015). For
developing a credible culture, the leaders should be committed to their team members in
generating overall productivity. Along with that, the leaders need to be honest and consistent
with the corporate culture in complying with the organisational procedures and policies (Tian
and Huber, 2019). Thus, establishing a culture of credibility will help to gain trust of the team
members and the hierarchy members of General Electric Company.
Engaging and empowering the members of a team
Team members can quickly develop trust and realise the full potential by delegating tasks that
are problem-solving. This strategy will increase employee engagement towards their assigned
task. At the same time, using this strategy into practice by the leaders of General Electric
Company can help in attaining creative solutions during challenging business circumstances
(Moyer, 2016). On the other hand, L Campbell et al. (2016) pinned the fact that the concept
of empowerment of team member is mentioned in autocratic leadership. As such, this
strategy although creates employee engagement but cannot be applied in all situations due to
a difference in IQ level and cultural differences. However, by using effective non-verbal
communication skills, the challenges of cultural differences can be avoided.

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Emphasising respect
Influenced by the views of Vogel et al. (2016), respect is another ingredient of developing
mutual trust with the team members. As such, by treating each others with respect will endure
valuable input by incorporating the listening norm. Accordingly, the leaders of General
Electric Company must be aware of the unspoken feelings of the employees by team working
experience and respect the point of view of each of the employees.
Supporting team development for understanding of the organisation’s direction
Communication
Communication is an effective tool and an integral method of team building (Cheong et al.
2016). A leader having strong communication skills will be able to examine all the concerns
and risks seeking help by providing honest, credible and meaningful information to all the
members of a team. As influenced by the view of Janssen et al. (2018), open sharing of
information regarding the business processes that require innovation develops a culture of
transparency. As such, the leaders incorporating effective communication strategy within the
workplace of General Electric can provide a competitive aid by focusing on internal
management.
Establishing team goals and values
Obtaining the culture for team development is possible by setting goals and objectives for a
company (Oberle et al. 2016). At the same time, outlining the values of the overall team by
specifying the procedures and targets will assure that each of the members of a team
understands the mission. Therefore, by setting the objectives and goals of General Electric
will help to achieve higher performance and sustain the global competitiveness. However, on
the other hand, Naik et al. (2016) stated that along with the establishment of team goals and
values, it is very important to evaluate the team performance regularly. This will increase
employee engagement and overcome the barriers of the organisation.

3. A) Leadership approach in an organisation with respect to ethics and values

The General Electric Company’s ethical approach to leadership believes in playing fair,
considering the welfare of others as well as consequences of individual action. According to
the words of Walumbwa et al. (2017), the ethical leaders consider a long-term goal as the
primary goal along with analysing the impact of their decisions on the company as well as the
employees. The leaders of the organisations are like the role models for their subordinates or

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employees working under them. The actions of leaders should consider factors such as bad
influence on employees, unfair and unjust behaviour towards a specific employee along with
being pessimist instead of being an optimist. The General Electric Company considers all
these factors and proceeds with the ethical approach to leadership. The leaders influence the
actions of the employees working under them as a result if a leader is willing to sacrifice for
the betterment of his employees and company; the same can be seen in the employees
following him.
The ethics of leaders are of varied types such as situational, professional, value-based, rule-
based, fairness-based ethics and ethics based on general principles. The ethical leaders follow
one of the required ethics when the situations arise. The company may use the value-based
ethical approach as per the situation or the requirement of the company. As commented by
Tian and Huber (2019), the value-based leadership approach refers to the motivation of the
employees by aligning the company’s goal with employee’s personal goal. This helps the
employee to get motivated along with fulfilling the short-term or long-term goal planned by
the organisation. Value-based leaders align the company’s goal with personal goal thereby
motivating the employee and increasing the productivity along with the efficiency of the
company. The leaders are the role models of most employees, henceforth, the leaders should
lead by example which in turn will help the employees to understand and believe in the
openness of the organisation’s goal.

3. B) Impact of culture, values, legal, the regulatory and ethical requirement with
respect to ethics and values

The ethical leaders influence the employees to work for the betterment of the company as
well as to achieve personal and professional goals. The ethical leaders are void of any
discrimination towards any employee along with behaving justly with every employee. This,
in turn, increases the employee's morale along with mutual respect amongst them. This kind
of environment helps to promote cultural diversity and moral values across the company and
helps to achieve the overall objectives of the organisation. The leaders are the role models of
the employees thereby the leaders who lead by example; create a positive impact on the
minds of the employees. The actions of leaders such as sacrificing for the betterment of his
employees and company influence employee’s values and morale.
The company and the leaders abide by the legal and regulation of the country with respect to
the ethical and value-based approach. The basic legislation that the leaders and company

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abide by is the equality act 2010 that prevents the leaders and the company from
discriminating any employees based on gender, race, religion, age and demographics. The
equal pay act 1970 prevents gender discrimination with respect to wage or salary (gov.uk,
2019). The ethical leader follows this legislation to act justly and indiscriminately towards all
the employees. The regulations which the company along with all its employees need to
follow are employment law and competition law. The employment law deals with minimum
wage, leave, termination of employment and pensions for the employee. The competition law
is formed to counter any marketing methods that would suppress competition and unjustly
minimise options accessible to consumers. The General Electric Company follows these
legislations and regulations to stop discrimination towards any employee and to increase the
employment available to the people. The General Electric Company follows the ethical
leadership to promote culture and values amongst its employees.
The ethical requirements of the company are honesty, integrity, loyalty, fairness, concern for
others, respect for others and law abiding. The ethical leaders also need to possess these
qualities for being a good role model for its employees. The honesty and integrity of the
ethical leader are the main requirements of being an ethical leader along with loyalty, fairness
and respect for others. The General Electric Company abides by these ethical requirements
along with all the necessary legislation along with regulations to promote cultural and ethical
values.

3. C) The organisation’s stakeholder expectations and needs of leadership

Stakeholders are entity or a group of entity that will affect the company’s decision or may get
affected by the company’s decision in some major way. As opined by Hodges and Howieson
(2017), the internal stakeholder of the company includes manager, employees and owners
which commit to the company by working for them. The external stakeholder of the company
includes government, shareholders, customers, suppliers, society, and creditors that might
affect the business’s decision externally. The internal and external stakeholder has different
needs and expectations of leadership in an organisation.
The internal stakeholder of the General Electric Company needs a leader who can adjust and
change his style based on situations or the requirements of the company. The internal
stakeholder includes employees, managers and owners that need the leader to understand the
employee's condition along with considering the wellbeing of them. The internal stakeholders
need an ethical leader with strong morale and full of optimism along with respect for its co-

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workers. The internal stakeholders expect the leaders to be honest, integrity, loyal, fair, have
concern for others and have respect for others and law-abiding leader.
The external stakeholder of the company consists of suppliers, society, shareholders,
customers and creditors. The General Electric Company’s external stakeholder needs the
leader of the company to understand their demand along with increasing the productivity and
efficiency of the company. The leaders need to come up with creative solutions for the
problems which will help the leader to solve any external dispute regarding share or credits of
the company. The external stakeholder of the company expects the leader to increase the
market price of the shares along with the overall turnover of the company. This, in turn, will
help the external stakeholder to increase their profit margin.

Conclusion

The different types of leadership style practised in the General Electric to achieve its
objectives are autocratic style, democratic style, laissez-faire style, transformational
leadership style and some other styles as well. This leadership style was used as per the
situation faced by the company. Encountering challenges in leadership practices are very
effective in developing leadership capacity and enhance the employability. This report has
been prepared based on the context of leadership styles performed in the organisation,
General Electric. The General Electric Company’s ethical approach to leadership believes in
playing fair, considering the welfare of others as well as consequences of individual action.
The leaders are the role models of the employees thereby leaders who lead by example, create
a positive impact on the minds of the employees. The ethics of leaders are of varied types
such as situational, professional, value-based, rule-based, fairness-based ethics and ethics
based on general principles. The ethical leaders follow one of the required ethics when the
situations arise. Value-based leaders align the company’s goal with personal goal thereby
motivating the employee and increasing the productivity along with the efficiency of the
company.

Recommendations

On the basis of the critical analysis of the different types of leadership practices and
challenges faced by General Electric Company, the following recommendations can be
provided:

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● Democratic leadership style practised within General Electric company can help to
increase sustainability as a result of employee engagement and participation
● Implementing the Equality act of 2010 to prevent the leaders of a team from
differentiating between the employees on the ground of gender, race, religion, age and
demographics.
● Introducing the Equal pay act of 1970 within the organisational policies and ethical
framework to avoid discrimination practices

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