Literature Based Essay Management Practice

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Analysing the effectiveness of leadership and team building in raising the growth of the organisation.


Leadership is the ability to modify, train, influence and motivates the team members to enhance the process of achieving goals. Larry, (2020) elaborated that leadership is a matter of reducing the barriers by making effective decisions to work in an independent and free environment. Good leadership is significant to every business organisation as leaders encourage team members by bringing innovation in any task, so the lined-up goals can be achieved efficiently. The leader plays a crucial role in handling the strategy, manages resources and inspires the team. Riggio, (2017) stated that when it comes to leadership effectiveness, they typically refer to the capability of leaders to inspire the team. Leaders are made, not born, but some traditional qualities must be there in any leader. It means that leaders must be diplomatic, charismatic and visionary.


Different theories support leadership development as they are significantly focused on enhancing emotional intelligence in leaders so they can motivate others. On the other hand, leadership plays a critical role in building the team to work effectively (Pratima, 2019). Before making the team, it is mandatory to know the primary reason for forming the group. It will help team members understand the primary objectives that need to be achieved by them elaborated by Khan and Wajidi, (2019). Understanding the leadership theories help in making an individual a great leader. The management theory of leadership, also known as transactional theory, defines leadership as a process of penalties and rewards.

Transactional leadership is primarily results-focused rather than creativity and innovation, in the opinion of Juneja, (2018). Leaders following transactional theory don’t focus on enhancing follower’s creativity and don’t motivate them either. On the other hand, Anderson, (2017) stated that transformational leadership primarily focuses on strengthening the team’s engagement and bringing innovation in them. It is defined as the best leadership practice that leaders can adopt to improve team-building activities (Leadership Theories, 2020). They primarily aim to empower and motivate employees to meet the organisation’s objectives by adopting creativity and new ideas.

Moreover, transactional leadership primarily makes employees achieve goals by giving them punishment and rewards. Providing employees with rewards enhance their motivation for improving their work-efficiency as per Jensen (2019). On the other hand, transformational leadership helps bring innovation from employees that shape a prosperous future for the organisation. Geier, (2016) described that transformational leaders trust trained employees and allow them to take the lead while making decisions and finding new solutions to past issues. Both the leadership focus on motivating employees but by using different approaches as discussed above. Transactional leadership is effective in an organisation that wants to decrease the inefficiency or chaos and wants a daily routing or structure to be followed adequately.

Leadership can be improved by using charismatic leadership theory as it also helps in influencing team members as per Grabo (2017). Team building strictly requires a leader who continually empowers and motivated team members to improve their efficiency. Charismatic leadership is similar to transformational leadership to some extent as they use their capability to make a deeper connection with people and is beneficial for companies that want to move forward as per Charismatic Leadership, (2019). Charismatic leaders are also good communicator that is must for building a team so that the organisation growth can be improved. Bratton, (2020) elaborated that the significant difference between charismatic leaders and transformational leaders is that charismatic leaders use their skills and personality on their followers to take action. White, (2018) elaborated that transformational leaders allow the employee to share their vision and implement change.

Leadership and team-building activities work together. Influential leaders always concentrate on building a team, so an organisation’s goals can be achieved adequately. According to Misra and Srivastava, (2018) leaders must seek to recognize team building better as it primarily helps increase the effectiveness of any business. Other than that, frequent communication is must for building a team. Effective communication helps discuss the issues, success, and conflicts precisely that improve the business’s growth elaborated by Patterson, (2016). Different models are there that can be used to build a team efficiently. Tuckman’s model of team development can be implemented adequately so that growth can be enhanced. It consists of five stages that include forming, storming, norming, performing and adjourning as per Largent, (2016). At every step, communication plays an essential role in successfully moving to further stages. In the first stage of forming, the team gets to interact with each other and even don’t feel comfortable. It is the activity that can help build trust, and everyone gets to know about each other’s weaknesses and strengths.

Leaders need to create a healthy environment, so the team members get comfortable with each other. According to Natvig and Stark, (2016) storming is the stage when leaders need to solve group conflicts as the discussion phase of any project begins. Transformational and charismatic leadership helps to successfully resolve the issues, so the work environment is maintained smoothly. In the third stage, if the conflicts between team members are solved adequately, they will start helping each other and the mission can be achieved appropriately (The Tuckman Team model, 2018). Rising conflicts are probable if the team members don’t understand their roles appropriately. Leaders need to be a good communicator, so the vision and goals can be explained effectively as it plays a crucial role in meeting the organisation’s requirements.

At the performing stage, teams’ success is praised, and feedback will be given if there is a requirement for any changes. Finally, after accomplishing the project, teams will be distributed, and it is defined as the adjourning stage. Wong and Giessner, (2018) elaborated that the Laissez-faire style of leadership also fosters the shared responsibility as it helps boost the productivity and motivation of members. It can be seen that this leadership assigns task based on the ability of team members that helps individuals working efficiently (Gandolf and Stone, 2016). For instance, Zara is known for its fast-fashion, and they follow the transformational leadership style. They believe in encouraging their employees to think beyond expectations, and open communication helps them provide a clear vision and guidance to their employees. Zara depends on the store managers to identify the current needs of consumers to produce products as per the latest market trends elaborated by Zara brand Analysis (2020). The success of Zara can be seen, and it predicts that a transformational leadership style helps in business growth effectively.

On the other hand, H&M follows a transactional leadership style and employees have to follow the guidelines given by leaders. They continuously focus on following their organisational culture that aims at the growth of employees and teamwork. As discussed by Jensen (2019) the major drawback of using this style because their employees don’t think of adopting innovation, and personal growth can’t be achieved. These two examples clearly define the significant difference between the two styles of leadership. Effective team building can be achieved by sharing the goals adequately so team members can take actions. Other than that, leaders must assign takes as per their abilities to work with full enthusiasm as per Team building, (2017). Effective team building helps in growing the organisation as the entire task will be completed by the team. Their work efficiency is responsible for improving growth.

It is essential to invest time in building a team as it aims to achieve goals that the organisation is aiming for (Gandolfi and Stone, 2016). The competition will be increased as an under-performing team always tries to work excellently to give tough competition to others. It directly enhances the growth of the organisation. On the other hand, leadership also helps in planning effectively as per the requirements, and it will directly impact the organisation’s development stated by Pratima, (2019). Transformational leaders constantly focus on bringing new innovative ideas among team members that enhance competitiveness in the market. For instance, Starbucks, USA, allows its consumers and employees to get new ideas related to the breakfast menu and coffee flavours introduced in the retail outlets stated by Pratima, (2019). One of the ideas that were introduced includes short sized non-caffeinated fraps for children.


It is analysed that leadership helps in improving relationships between employees and team members. HCL technologies bring innovation based on its philosophy that defines “Employee first, customer second”. They continuously focus on empowering employees to bring new ideas that help in their company’s growth. Leadership also helps in managing conflicts between employees, so a health work environment can be managed. They must coordinate with team members to solve the disputes. Effective leadership also enhances confidence among team members that empowers them to share their ideas freely. Multiple alternatives on a single project allow them to choose the best option. It will be implemented as per the situation, so the organisation’s growth can be improved. By implementing effective leadership practices and team building activities, an organisation can enhance its growth and productivity. It can be declared that employees play an essential role in enhancing the work-efficiency if they feel motivated, encouraged and heard.


Books and Journals

Anderson, M., 2017. Transformational leadership in education: A review of existing literature. International Social Science Review93(1), p.4.

Bratton, J., 2020. Charismatic and Transformational Leadership. Organizational Leadership, p.149.

Gandolfi, F. and Stone, S., 2016. Clarifying leadership: High-impact leaders in a time of leadership crisis. Revista de Management Comparat International17(3), p.212.

Geier, M.T., 2016. Leadership in extreme contexts: Transformational leadership, performance beyond expectations?. Journal of Leadership & Organizational Studies23(3), pp.234-247.

Grabo, A., Spisak, B.R. and van Vugt, M., 2017. Charisma as signal: An evolutionary perspective on charismatic leadership. The Leadership Quarterly28(4), pp.473-485.

Jensen, U.T., Andersen, L.B., Bro, L.L., Bøllingtoft, A., Eriksen, T.L.M., Holten, A.L., Jacobsen, C.B., Ladenburg, J., Nielsen, P.A., Salomonsen, H.H. and Westergård-Nielsen, N., 2019. Conceptualizing and measuring transformational and transactional leadership. Administration & Society51(1), pp.3-33.

Khan, M.R. and Wajidi, A., 2019. Role of leadership and team building in employee motivation at workplace. Global Management Journal for Academic & Corporate Studies9(1), pp.39-49.

Largent, D.L., 2016. Measuring and understanding team development by capturing self-assessed enthusiasm and skill levels. ACM Transactions on Computing Education (TOCE)16(2), pp.1-27.

Larry, M., 2020. Leadership, contexts, and learning-Part 1. Leadership definitions and themes.

Misra, S. and Srivastava, K.B., 2018. Team-building competencies, personal effectiveness and job satisfaction: The mediating effect of transformational leadership and technology. Management and Labour Studies43(1-2), pp.109-122.

Natvig, D. and Stark, N.L., 2016. A project team analysis using Tuckman’s model of small-group development. Journal of Nursing Education55(12), pp.675-681.

Patterson, P., 2016. Retrospective: tracking the impact of communications effectiveness on client satisfaction, trust and loyalty in professional services. Journal of Services Marketing.

Riggio, R.E., 2017. Management vs leadership: Definitions, distinctions, and early theories. The Oxford handbook of management, pp.276-292.

Wong, S.I. and Giessner, S.R., 2018. The thin line between empowering and laissez-faire leadership: An expectancy-match perspective. Journal of Management44(2), pp.757-783.


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Pratima. K. 2019. Importance of Leadership. [Online]. Accessed through: <> [Accessed on: 20 February, 2021].

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White. S. 2018. Transformational leadership. [Online]. Accessed through: <> [Accessed on: 20 February, 2021].

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