The family business has a growing need across the globe. The family business operates as a commercial organization that is managed by the various condition members of the family itself.
The members of the family are assigned the post in the company at different levels of the organization (Roth et al., 2017). Large family-owned companies are run by the consecutive generation of the family.
However, the family business managers may or may not appoint an employee from outside the family. This depends on the various conditions of the company. The condition may vary from its privacy, management, leadership style followed by the family-owned business, etc. The companies related to the owner-manager entrepreneurial firms are not considered as the family business.
The leadership style of the family-owned business is the most common and conventional method of leadership. The leadership is the most important in the progress of the leadership. Various companies follow different approaches and styles of leadership. Similar to various other businesses, the family-owned business also focuses on the leadership style of the organization for the success of the company.
The leadership has helped the family-owned business to turn the organizations potential into reality. There is various other importance of the leadership in the better functioning of the organization.
Leadership helps the motivating power of the team embers of the project. The authority of the organization is also benefited by effective leadership. This helps the human resource department of the company to enhance the efficiency of the workers. Leadership also helps in the transformation of organizational status. Leadership can help in the collaboration of the formal as well as informal organizations.
This can formalize the operational condition of the family-owned business. Apart from the organization’s operation, the leadership of the organization can also help in the enhancement of the collaboration of the employee. The leadership also formulated a clear vision of the organization for increasing the output of the company.
Leadership can be very effective in the efficient planning of new strategies for the organization. There are various other factors relating to the leadership of the organization. Leadership plays an important in motivation and inspiration to the employee.
This helps in the development of new ideas related to business strategies. This can help in creating better employee relations by enhancing communication skills among the employee and the management. In doing this the integrity is maintained among the employee.
The most important function of effective leadership is crisis management. Business organizations are more likely to face various kinds of issues and crises during the operation of the business. Related to the crisis there are several risks involved in the business operation. The leadership helps with risk management of the organization.
This factor helps the managers to create an environment that will motivate the worker to motivate more. The effective leadership style of the organization also helps in providing the proper guidance to the employee as well as the employee who newly joins the company. In this process, the employee feels the authority and can provide their ideas to the company.
There are various family-owned organizations across the globes, which are now the leading organizations in the business market (Sunthonpagasit, 2019). The family-owned organizations follow several leadership styles to stay ahead in the competitions.
Family-owned organizations such as Walmart have opted for various innovative styles in the leadership to enhance the efficiency of the organization. Walmart Inc. is a multinational retail business that has its outlet across the globe.
Walmart Inc. is a family-owned American organization that operates in a chain of hypermarkets. Walmart Inc. also has its own grocery stores, departmental stores, etc (Xie, 2019). The headquarters of Walmart Inc. is located in Bentonville, Arkansas.
The company has over 11,000 departmental stores operating in over the 25 countries across the globe. The revenue of Walmart Inc. is US$514.405 billion, which makes it the world’s largest company by revenue.
The family-owned organizations have various methodologies of hiring the employee. The main factor of the family-owned organizations is the external hiring process of the employee (Wirba, 2017).
The recruitment process of the organization includes the various process that helps in identifying the required employee for the job. The recruitment can be done in the long term as well as a short term basis. Leadership management is very helpful in attracting various candidates for a particular job.
Walamart Inc. has employed a large number of employees. Walrmart Inc. has now recruited the largest number of private employees. The leadership of Walmart Inc. has helped in enhancing the strategies related to recruitment. The transformational, as well as transactional leadership has helped in the operation of Walmart.
Leadership can be classified into two different types. These are transactional and transformational leadership. These two leadership style is the most important part of the leadership in any organization (Ozdemir, 2019). These types of leadership have their own operational style. Leadership can be helpful in making employees’ lives better.
Transformational leadership can be helpful in bringing change in the organization as well as the employee of the organization. The relation between the managers and the employee has been operated by the transactional leadership.
The transactional leadership helps in the improvement of the communication as well as the relations between the employees and the authority of the company. This leadership can be helpful in the enhancement of the employees’ efficiency. The company has implemented various methods and approaches to making operations more successful.
The organization promotes reward to the desirable employee. This enhances the motivation as well as inspirations among other employees. Walmart Inc. has gained benefit from both the type of leadership style. Transformational leadership is related to the organization’s vision as well as the direction, while transactional leadership is related to the daily opera5ion of the organization.
This leadership has helped Walmart Inc. in various aspects of organizations such as management, recruitment, employee management, human resource management, etc.
Apart from these benefits, the organization faces various other problems related to the organizations’ operation. These problems are overcome by the innovative leadership style followed by the organization.
The organization faces several issues that have to deal with efficiently (Millhouse, 2018). Walmart Inc. has come across several issues that are related to production as well as the logistics department.
Walmart Inc. faced several criticisms from different parts of the community. The labor union, as well as advocates, has shown their discomfort related to the policies of the company. The company has also faced racial as well as gender discrimination.
There are various other issues that were faced by the company such as product discrimination. These included the supplying of foreign products, product supplier treatment, etc. Walmart Inc also has some environmental factors. However, these issues were overcome by the effective leadership style practiced in the organization.
Walmart Inc focused on the transactional as well as the transformation leadership style that helped them in focusing on both aspects of the company i.e. daily operation as well as the manager-employee relation (Fitzpatrick, 2018).
Transformational leadership is one of the most important factors of Walmart Inc.’s leadership strategies. Transformational leadership has contributed to the various aspect of the organization. This leadership has major advantages over traditional leadership.
This leadership style has helped the leaders to understand the functions of operation in more effective ways. This leadership style has impacted the way the employees work in the organization. The transformational leadership has contributed to the major changes and has helped in building the most successful leaders.
The transformational leader has a strong influence on the corporate culture of the organization as well as the employees’ independence of the workplace. Transformational leadership allows the employee to have authority on their assigned work. This makes the employee more reliable and helps the employee to gain trust in the organization.
This is related to the micromanaging of the employee which doesn’t allow the employee to have control over the project they are working on.
This leadership can help employees to become creative and which may result in a more efficient way of working. Transformational leadership operations can help in analyzing the upcoming issues related to the project (Hawkins, 2017). This analysis helps in the management of the upcoming issues that may cause serious trouble in the organization.
Transformational leaders have programmed in such a way that a leader helps in the encouragement of the employees. The authenticity of the organization is maintained through transformational leadership styles. This leadership helps in the cooperation as well as the communication of the employee and the managers. Transformational leadership helps the employee to enhance their corporate skills.
The employees are encouraged to have a mindset in which they are made to cooperate during the work. The employees should have the intention of working for the common good. In transformational leadership, moral standards are more focused on the organization. However, the leadership provides training to the employees; they also allow them to make their independent decisions related to the ongoing project.
The followers of the transformational leadership style are majorly benefited by the operation method. The employees get motivated and encouraged by the leadership style.
The skills related the transformational leadership is considered as a soft skill. The leaders should possess these soft skills related to the leaders should also undergo certain training programs to make themselves for efficient leadership. There are several courses and training programs helps with the development of these skills.
In Walmart Inc., the leaders such as the company’s CEO and other high officials pay regular visits to the stores. This has helped the leader to understand the progress and the problems related to the business in a more efficient manner. This also enables the leaders to understand the employees’ working conditions in the stores.
There are several issues realted to the functionality of the store. Some of the issues were related to the storage of the food product.
According to the analysis, the store manager of Walmart Inc. realized that the local vegetable storage was much cheaper than the storage of the imported products. Walmart Inc. also saw some issues related to the items of clothing.
These stocks related problems were instantly managed by the company. The visits of the officials have various other advantages. The visits of the higher officials of the stores have encouraged the staff and various other employees. The store employee is allowed to make their independent decisions related to the marketing process.
This helps the company to analyze the actual marketing condition. The report made by the store employees is analyzed to make future strategies that can help in enhancing the profit of the organization.
Transformational leadership introduced new strategies for operation. Project impact is the new approach which is considered as the method to enhance the marketing strategies (Thibault et al., 2019).
The project impact helps in analyzing the customers’ preference related to the product offered by Walmart Inc. The leaders of the organization analyze the report related to the customers’ preferences and formulate the strategies accordingly.
This project impact also helps in the poor conditions that can arise in the store. The poor condition can be related to the sale of the product. The sale is related to customer preference. The customer preference can impact the sale of the product.
The project impact can be used to increase the sale of the products in the store. This project not only helped the store managers in increasing the sale of the project but also enhances the customers’ experience related to the shopping.
Transformational leadership also influences the intention of the leaders. Transformational leaders help the leaders to make tough decisions related to the business.
The leaders should be willing to make tough decisions to help in a tough situation in the market. The market business is more likely to face various tough situations related to product sales. Apart from this, the leader should also be able and willing to take full responsibility for the failure of any project.
The leaders should be aware of the cost related to the decision they are making. For cost management, the leaders are required to make logical decisions based on the situation. The organization should focus on the development of efficient leaders
Transformational leadership also helps in the development of leadership quality in leaders. Walmart Inc. has created leaders at various levels. The company has used this approach for the expansion under these leaders.
Another approach of leadership in a developed organization is transactional leadership. The transactional leader is related to the daily operation taking place in the organization. This leadership is mostly applied in the departmental stores of the organization. This leadership style has helped the store to enhance their sales (Afsar et al., 2017).
Transactional leadership also helps in the formulation of the strategies that can help in the stores’ operation. The family-owned businesses can be benefited by the transactional leadership. Transactional leadership help in creating the structure and the order in the organization.
Transactional leadership is mostly used in military operations, international projects, etc. Transactional leadership only focuses in the operation process. This leadership is designed for formulated ideas and processes.
Transactional leadership does not motivate new and innovative ideas. This is only required to make the process smooth and obstacle-free. Unlike the transformational leadership, this leadership does not focus on human motivation and development.
This leadership style is more result-oriented. Transactional leadership can be used in the family-owned business which has the proper operation structure. The effectiveness of the employee is evaluated in terms of the rewards awarded or the penalties of the employee.
The operation process of the structured family-owned business is based on the previous requirement of the projects. Transactional leadership has only a few approaches in which to motivate the employees. The employees are motivated in terms of rewards and penalties.
The family-owned business uses transactional leadership for the short term process. Since transactional leadership is based on the structure and the policies of the business company, it is simple and easy to execute (Dutta et al., 2018). There are certain rules that have to followed under transactional leadership. These rules are related to business policies.
Transactional leadership’s efficiency can only be evaluated in terms of the result of the operation. Transactional leaderships are inflexible and are less likely to change in operation due to its operational methods. Transactional leaderships do not focus on innovation and new ideas and thus this leadership is considered as the left-brained.
The transactional leadership encourages those employees who strictly focus on the structure. Apart from the employee reward, transactional leadership can also be used to formulate the structure of the operation in the business. Transactional leadership can help in achieving the short-term goals. These short-term goals can be achieved more quickly than any other leadership style. The family-owned business uses this transactional leadership style where there is diversity in the organization.
The diverse environment in the organization can create the communal dispute and may affect the cooperation among the employee. Transactional leadership creates the structure and the policies in which the employees operate within the given boundary and under the given rules. These rules and the structure of the organization help in avoiding the lack of operation.
Apart from this, transactional leadership is easier to understand and can be executed without any obstacles. The family-owned business which operates in the international boundary is more likely to, operate under the transactional leadership. Leadership brings out the most efficient working individuals. Due to the reward-based process, the employees are more focused on giving more effective results.
Transactional leadership provides proper balance to the work. Walmart Inc. generally has this transactional leadership in the departmental stores. The employees are ordered to work in a particular structure. Transactional leadership realized the negative impact of the approach launched by transformational leadership. Project impact was substituted by the transactional leadership.
Transactional leadership is also used in enhancing the relationship of the suppliers with the organization. The family-owned business can go for the cheapest price available for the projects.
The company can also be benefited from transactional leadership which helps in enhancing the supply chain efficiency. Walmart Inc. has encouraged green business practice which includes the sustainable project index. This is used for the tracking of the product and the progress made by the organization.
There are other leadership strategies that can be used in the family-owned business. Charismatic leadership is another approach to the operation of the organization (Shamir, 2018).
The main factor of the charismatic leadership style is the communication of the employee and the leaders. Charismatic leaders influence the operational process by encouraging the employees of the organization. The personality of the leaders also plays an important role in encouraging employees. A charismatic leader possesses excellent communication skills. The main function of the charismatic leader which also is the ability is to articulate the strategic vision for the organization.
The charismatic leaders are skilled in working at the emotional levels of the employee. The issues and various related inefficiency can be analyzed by charismatic leadership.
Ethical leadership is another leadership style that can be in the family-owned business. Ethical leadership considers the dignity as well as the right of the employees working in the organization. This leadership style has encouraged engagement programs (Shapiro, 2016).
Ethical leadership style every ethical factor including the environmental issues realted to the business. This helps in maintaining and improving organization’s status in the market. Strategic leadership can also be a better approach for the family-owned business.
Strategic leadership enhances the abilities of the employee and can bring some changes in the organization as required. This leadership helps in the expansion of the organization at the right time.
This essay consists of several approaches to the leadership style that can be followed by the family-owned business. A family-owned business has leaders who are related to the family.
The business is run by the various generation of the family. The business follows a different leadership style to enhance its progress. There are two main leadership approaches that are very beneficial in the operational process. Transformational and transactional leadership are sed in the family-owned business. Each of these leaderships serves different purposes in the organization which can be used to enhance the progress of the organization.
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