Majority of the times, employees end up leaving their jobs because of poor practices in management, a situation that results in increasing the amount of costs and lowering the talent that exist within the business (Collings & Wood, 2009). Managers should be having a better understanding for the good practices of management by formal education or personal research for the creation of a business model that can result in improving the productivity of employees, eliminating redundancy within processes and for increasing the rates on retention.
Theories of management end up facing certain limitation as models related to the behaviour of humans within a business organization do not seem to be considering each and every variable that can have a significant effect on profitability (Purcell and Boxall, 2002). Different business organizations end up facing a number of issues with financial resources, utilization of technology, and employees (Cardy, 2008). Theories of management work in the best way from the perspective of macro- environment, like when a business organization contributes in determining the relevant model important for management as a complete concept or starting a project of large size that had never been attempted previously.
Importance of Leadership Theories
According to the management theories, leadership is referred to as the process with the help of which one person impacts the others to attain the goals of an organization or a group. The theory of leadership plays a significant role in making managers strong and successful leaders (Collings & Wood, 2009). The theory of leadership is applying the concept of leadership for the process of social influence.
Leadership cannot be present in the absence of a leader under one or more than one followers. Leadership theories contributes in eliciting the voluntary activities amongst the part played by the follower. The voluntary characteristics of compliance contribute in separating leadership from the other categories of influence on the basis of formal authority (Kinicki and Kreitner, 2005). These voluntary characteristics are enhanced by considering the leadership theories amongst managers that result in making them strong and highly influential leaders.