Leadership Theories Select One of the Leadership

¶ … Leadership Theories

Select one of the leadership theories and then identify how you might apply the principles of this theory to aid in merger and acquisition.

In any organization, the overall leadership style will play a major role in determining the direction of the company. As the actions that are taken by managers, will set the tone for future growth and how the staff will focus on achieving their different objectives. One of the most common leadership principals that are used is: situational leadership. This is when executives are looking at different circumstantial variables, to determine the most appropriate course of action. Where, their underlying amounts of leadership will be adjusted, to reflect the changing conditions. (Cherry, 2010) A good example of this can be seen with the merger that would take place between: Exxon and Mobile in 1999. What happened was oil prices were hitting at all time low, which was squeezing the profit margins of both companies. To reduce costs and increase their overall reach around the world, the two entities would merge together. This would help the new company be able to have a global reach, at all levels of oil and gas production (ranging from: drilling to refining). ("The Merger," 2010) This is important, because it shows how the situational leadership theory, can help executives to identify new opportunities, based on the changing conditions that are taking place. As the principals from this theory, will help managers be able to identify when an organization needs to be adapting to various changes. At which point, executives can begin to spot mergers and acquisitions that would benefit both organizations.

Develop a leadership plan for your proposed merger and acquisition based on the theoretical and practical dimensions of effective leadership.

To develop a plan for any proposed merger using situational leadership requires utilizing a number of different principals to include: determining the current environment, recruit members of the staff (who can help implement the strategy), create a transition team that can work between both companies and set predetermined benchmarks for evaluation. Determining the current environment is when executives are looking at how a possible merger could take place. In this kind of situation, they are examining different ways that the two companies can merger together to create a win -- win situation. (Lopen, 2010)

Recruiting members of the staff is when managers are seeking out personnel that share similar ideas. This is important, because key allies on the staff, can help everyone inside the organization to see the possible benefits of the merger (allowing for no opportunities to be missed). (Lopen, 2010)

Creating a transition team that can work between the two companies, is when you have key allies inside both organizations that will address the key issues of: redundancy and the culture of the organization itself. This is important, because it will ensure that the various issues of the companies merging together are addressed early. As this will make certain that everyone is of the same thinking, about the overall benefits of the acquisition for both organizations.

Setting predetermined benchmarks is when executives are analyzing the possible benefits of the merger and will establish different standards (to determine the impact of the acquisition on the company). This is important, because it will provide managers and shareholders, with an objective way of analyzing the impact of the merger on both organizations. (Lopen, 2010)