Cryptocurrencies and Taxation
Taxation has a major impact on the return that any investment generates. This is the reason why it is important to understand the impact of taxation on cryptocurrencies. However, since cryptocurrencies are relatively new, there is considerable ambiguity regarding the taxability of cryptocurrencies. In this article, we will have a closer look at some of […]
Corporate Governance – An Overview
Corporate Governance as a practice has been gaining importance ever since the economic turmoil caused by the bursting of the dot com bubble in 2002. Corporate Governance is basically a detailed disclosure of information and an account of an organization’s financial situation, performance, ownership and governance, relationship with shareholders and commitment to business ethics and […]
Investment Banks and Governments
Governments all over the world regularly engage in high-value financial transactions. They often need the help of experts in order to do so. Since investment banks have a lot of experience in mediating high-value transactions, they are often appointed by the governments to be their advisors on these matters. In this article, we will have […]
Employee Layoffs – Handle Carefully
The term employee layoff is referred to as temporary separation of an employee from the employer. However, these days it is also used for permanent termination of an employee for business reasons. According to section 2 of the Industrial Disputes Act, 1947, the employee layoff is the failure, inability or refusal of an employer to […]
Equity Valuation: Definition, Importance and Process
Throughout finance, one rule always holds true. The general belief is that the value of any asset or security is exactly equal to the discounted present value of all the cash flows that can be derived from it in future periods. Using this principle, one can easily value securities like debt. This is because they […]
The theory was developed by Robert House and has its roots in the expectancy theory of motivation. The theory is based on the premise that an employee’s perception of expectancies between his effort and performance is greatly affected by a leader’s behavior.
The leaders help group members in attaining rewards by clarifying the paths to goals and removing obstacles to performance. They do so by providing the information, support, and other resources which are required by employees to complete the task.
House’s theory advocates servant leadership. As per servant leadership theory, leadership is not viewed as a position of power. Rather, leaders act as coaches and facilitators to their subordinates.
According to House’s path-goal theory, a leader’s effectiveness depends on several employee and environmental contingent factors and certain leadership styles. All these are explained in the figure 1 below:
Figure 1: Path-Goal Leadership Theory
The four leadership styles are:
He/She makes judicious use of rewards and disciplinary action. The style is the same as task-oriented one.
He/She consults his subordinates on important decisions related to work, task goals, and paths to resolve goals.
The leader believes that employees are responsible enough to accomplish challenging goals. This is the same as goal-setting theory.
According to the theory, these leadership styles are not mutually excusive and leaders are capable of selecting more than one kind of a style suited for a particular situation.
The theory states that each of these styles will be effective in some situations but not in others.
It further states that the relationship between a leader’s style and effectiveness is dependent on the following variables:
When team cohesiveness is low, a supportive leadership style must be used whereas in a situation where performance-oriented team norms exist, a directive style or possibly an achievement-oriented style works better. Leaders should apply directive style to counteract team norms that oppose the team’s formal objectives.
The theory has been subjected to empirical testing in several studies and has received considerable research support.
This theory consistently reminds the leaders that their main role as a leader is to assist the subordinates in defining their goals and then to assist them in accomplishing those goals in the most efficient and effective manner.
This theory gives a guide map to the leaders about how to increase subordinates satisfaction and performance level.
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