HRMT615 Week 1 Discussion 2

Some of the roles of a leader are to manage people, influence them and motivate them to
achieve organizational goals. Leadership styles are determined by many aspects, one of the most
common determinants being the leader’s personality.
Shawn proposes a reward and recognition system which indicates a transactional
leadership style. A transactional leadership style uses rewards and recognition to motivate
employees (Chaudhry & Javed, 2012). Transactional leaders believe in efficiency, order, and
structure, following rules to achieve organizational goals. The advantage of this method is that it
works based on motivation, and employees work based with a focus on achieving set targets to
benefit from the associated rewards. The downside of this style is that it focuses on short-term
goals and pays less attention to long-term ones. Secondly, it isn’t easy to sustain this leadership
style because finding the motivation that fits all employees could be challenging.
John thinks that employee-related issues are not so important, and this indicates an
authoritarian leadership style. Authoritarian leaders do not see the value or benefit of engaging
others in decision-making. Authoritarian leaders make decisions based on what they feel is best
for them or on previous experiences. The advantage of this style is that it allows for quick
decision-making. When fewer people are involved in decision-making, decisions are made faster.
However, this style also has a downside. Leaving employees out of decision-making makes them
feel unimportant, and they feel their contribution to the organization is not valued. As such, they
may be demotivated and end up not giving their best effort for the company’s benefit.
I would adopt a Laissez-Faire leadership style. This leadership style allows employees to
grow, thrive, and tackle challenges through ingenuity (Chaudhry & Javed, 2012). Laissez-Faire

leadership supports personal employee growth. Leaders who support this style understand that an
organization’s total output is the product of employees’ input in skills and motivation. This
leadership style demonstrates that employees feel the trust bestowed on them by their leaders.
This style also requires employees to motivate themselves intrinsically.
I would recommend a performance management system as a human capital management
strategy. A performance management system provides many benefits, including giving and
receiving feedback (Kuhil,2019). Through a PMS, employees can identify areas of improvement
with feedback from their peers and immediate supervisors. The employees can use this feedback
to develop improvement strategies to become more valuable to the organization as individuals
and in teams. Additionally, PMS allows employees to track the progress of crucial skills over
time (Kuhil,2019). Performance management systems rank employee skills in critical areas such
as team play, communication, or customer service. Employees use feedback from the PMS to
improve critical skills and become better contributors to the organization. PMSs are essential for
developing critical competencies.
Meta (previously Facebook) is one company that uses performance management
systems(Performyard.com, 2021). Previously, Meta has been voted one of the best companies
work in, which is also attributable to the gains from the PMS. Facebook’s PMS is so efficient and
advanced that it gives employees real-time feedback. Performance reviews are essential because
they help align organizational goals with individual ones.

References

Chaudhry, A. Q., & Javed, H. (2012). Impact of transactional and laissez faire leadership style on
motivation. International Journal of Business and Social Science, 3(7).
Kuhil, A. M. (2019). Employee Performance Management System Practices and Challenges: A
Case of Commercial Bank of Ethiopia. Indian Journal of Commerce and Management
Studies, 10(1), 23-33.
Performyard.com. (2021, July 2). How does Facebook do Performance Management.
Performyard.Com. https://www.performyard.com/articles/how-does-facebook-do-
performance-management