Leadership Situations As CEO, it is important to be aware of all the variables impacting the firm and apply the right foundational theory of leadership so that these variables are considered with effectiveness. In this situation, strategic contingencies theory serves as the best foundational theory from which I would draw to lead this organization. Developed by Hickson (1971), strategic contingencies theory focuses on the job that has to be accomplished and does not consider so much the personalities related to that job. In other words, the most important aspect of leadership according to this theory is the ability to identify the problems that need to be solved and implementing the right tools and/or people to solve those problems. In this case, the best solution to solve the company’s stagnation is to update systems (modernize) and offshore jobs that can be offshored.

Another foundational theory that may be helpful so as to make the Board happy with respect to rewarding those employees who have been loyal to the company for so long is transformational leadership. Transformational leadership was developed over a period of time in the 1900s but focuses mainly on how leaders can transform followers through the application of inspirational and charismatic techniques that motivate the followers to perform to the expectations of the leader. In order to get the long-serving workers of the company to adapt and implement the modern methods that need to be utilized in the firm, transformational leadership can be a helpful tool. Specifically, Burns’ (1978) transformational leadership theory can be instrumental here because it uses the “high road” approach to instilling values and meaning in individual workers by utilizing philosophical tones to support the workers’ drive towards the company’s ultimate goal. In other words,...

In the given situation, where there is a need for the firm to modernize as well as to offshore some jobs, while also helping those who are willing to transform themselves into modern workers to stay on board, the two theories described above are appropriate because they address the two specific approaches to the problem that are most likely to be effective. They also can help to accommodate the needs of diverse populations and settings for two reasons: 1) they do not consider personalities so much as objectives; and 2) they are rooted in capitalizing on the values of the company rather than on the values of any one culture or group of peoples.
The most appropriate theory for addressing the needs of diverse populations could also include servant leadership, which is rooted in putting the needs of the individual follower first. The context in which servant leadership may be applied, of course, rests within the overall framework of the company and its mission; in other words, the individuals are served by the leader so that their emotional and cognitive needs can be met in order to facilitate that worker’s ability to focus on achieving the organizational goals of the firm and even inspire others to do well (Hunter et al, 2013). In a scenario in which there is a diverse population, with young and old workers of various skill sets and mindsets, servant leadership and transformational leadership can be effective in appealing to the individuals one at a time and…