Leadership Effectiveness in Privatized and State Owned Companies

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University of Sarajevo
School of Economics and Business Sarajevo

University of Ljubljana
Faculty of Economics Ljubljana

Module: Research Methods

Assignment:

Topic selection and literature Review
LEADERSHIP EFFECTIVENESS IN PRIVITIZED AND STATE OWNED COMPANIES

Professor: Students:

Nijaz Bajgorić, PhD Elma Mujkić Selma Hadžipašić Anna Kakhvich

1. Introduction

It is well known, that the success of a company always relays on the effectiveness of a leader. If an enterprise is in a bad position, we should first of all pay attention on leadership and try to change some occurred issues. The first crisis in a company is a “crisis of leadership” (Greiner 1975). On a question “why?” there is a simple answer. He/she is also a marketer, a sales representative, a public relations officer, a financial controller and so on, occupying numerous roles and wearing many different hats simultaneously. (Exploring Distributed Leadership in the Small Business,Jason Cope, Steve Kempster, Ken Parry, International Journal of Management Reviews, Vol. 13, 270–285 (2011).

Good leader is not only a person, who “wears many different hats simultaneously” good. That also depends a lot on relations and relationships between a leader and team members. There have been made many studies on that subject. Many studies were trying to identify the individual traits of effective leader. These trait theories were trying to attempt a systematic approach to this topic. However, this kind of approach didn’t resulted with expected results, because there wasn’t found a kind of a set of traits, which could explain the effectiveness of a leader. In 1945 a group of researchers from Ohio State University tried to use a different approach to this topic. They were trying to identify the observable behavior of leaders, instead of highlighting their personality traits.

Relationship between leaders and members of a company affects a lot the business dealing of a company. There are different leaders in every company. We will observe privatized and state owned companies. There are also other factors which affect good business dealing. Some of them are, of course, leader’s level of education, leadership style and, as already mentioned, relationship between members and leaders. To examine all that, the a.m. group of researchers has developed a Leaders Behavior Description Questionnaire (LBDQ).

2. Background

Leaders Behavior Description Questionnaire was developed in 1945 on Ohio State University. The survey would be given to the members of a group and they would have to answer series of questions to describe the behavior of their leader. The results showed two factors accounted for most of the variance. These two factors were named Consideration and Initiating Structure.

Consideration is a factor, which describes the level of leader’s concern for the wellbeing of a member of a group. It is so called people-oriented leadership style. Some of the statements, used to measure this factor in LBDQ are:

- being friendly and approachable

- treating all group members as his/her equal

- looking out for the personal welfare of group members

- making him/herself accessible to group members

Initiating Structure is when a leader defines leader and group member roles, initiates actions, organizes group activities and defines how tasks are to be accomplished by the group. This leadership style is task-oriented. Some of the statements used to measure this factor in the LBDQ are:...
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