There are many theories used in organizational behavior studies. The main theories could be discussed as follows:
Fiedler Contingency Model, which, through questionnaire method assigns whether leadership is task dominated or relationship directed. The second stage in this Model would be in terms of determining variables like faith in leadership, the level of hierarchical steps and coherence of tasks, and the level of influence the leader is able to exercise. Essentially, the crux of this model is to match the leader’s latent and acquired competencies with the situation at hand and create situations whereby both “task-oriented” and “relationship-oriented” leadership is able to provide positive results and benefits to the company. (Robbins & Judge, 2007, p. 409-410).
However, The second model is called Cognitive Resource Theory (CRT) which takes into account the stress factor as a major contributory factor for performance or otherwise, of the leader. It is believed that a “leader’s intellectual abilities” compare favorably when leadership is under little stress but unfavorable when under elevated stress. However, another attribute, “leader’s experience”, correlates unfavorably when under small stress and favorably under elevated stress. (Robbins & Judge, 2007, p.412).
Next, coming to Hersey and Blanchard’s Situational Leadership Theory (SLT) considers areas in which leadership needs to accomplish tasks, especially in the context of the task are not able to be performed by subordinates, either due to incompetence or disinclination to do so. SLT reviews how leadership evolves in specific situational matrix and the level of leadership and managerial skills that needs to be evoked in each situation. Yet another major theory is called Leader-Member exchange theory, whereby it is seen that select few can access the exclusive domain or inner circle of the leadership and are thus benefited more than others; this is basically because they are more sincere, loyal, committed and competent than their colleagues.
Coming to the challenging aspects it is seen that “understanding organizational behavior has never been more important for managers.“ (Robbins & Judge, 2007, p.14). Or for that matter, more critical, for attaining corporate objectives and meeting company’s goals.
It is seen that organizational behavior is a complex subject since human behavior may be erratic and may not always be in conformity with social norms. No two persons would react similarly to a given situation; indeed, the same person may also tend to react differently given the same situation on a different day.
Corporate harmony needs to be sought and, with organizational complexities increasing, it is necessary that inhabitants of the “global village” needs to live in complete peace with the environment. (Robbins & Judge, 2007, p.15). For this it is necessary to seek unity in diversity, seek commonness, equanimity, and mutual goal realization, both in individual and corporate terms, since a person’s personal needs to be attuned and synced with organizational ones.
In this context, managers also need to think differently and situationally. It is necessary that a global cross-culture needs to be embraced and discrimination in any form, whether work-related or not, needs to be eliminated. In the global corporate environment “Managers have to shift their philosophy from treating everyone alike to recognizing differences and responding to those differences in ways that ensure employee retention and greater productivity, while, at the same time, not discriminating.” (Robbins & Judge, 2007, p.19). There are many aspects that could deter leadership, especially in a multi-national setting. Leadership needs to understand various diversities like gender, nationalities, sexual preferences, disabilities, etc., which, while positively harnessed could bring in productive results, but, if “not managed properly, there is a potential for higher turnover, more-difficult communication, and more interpersonal conflicts.“ (Robbins & Judge, 2007, p.19).
Reference
Robbins, Stephen. P., & Judge, Timothy. A. (2007). Organizational behavior, Twelfth Edition, 14, 15, 19, 412, 409-410. Prentice Hall. (provided by customer).