The two retail companies picked are Walmart and Costco whose 2017 Financial statement links are provided below: WALMART https://www.nasdaq.com/symbol/ wmt/financials?query=income- statement COSTCO https://www.nasdaq.com/symbol/ cost/financials?query=income- statement Both organizations are well known brands and position themselves well with their customer base. Walmart’s value proposition is “We save people money so they can live better”. On the other hand, Costco’s value proposition is “All-in-one convenience and everyday affordability”. Both retailers focus on cost saving for their customers. Looking at their financial statements and by analyzing them a few key areas are evident when comparing the two organization. Looking at the current ratio and quick ratio we can determine the short-term solvency of each organization. The current ratio can be determined by dividing the assets by the liabilities. Walmart’s current ratio sits at 0.86 while Costco’s sits at 0.99. The quick ratio is c
Situational leadership theory approach is that a leader should adapt to the circumstances or situation. Contingency Theory asserts that the leader should match the situation (wip5014, 2013). The theories are similar in that they focus on the importance of the situation but have different expectations of the leaders. For our discussion, I will focus on situational theory.
Basic foundations
The situational theory maintains that there isn't a prototypical leadership style and that a leader's strategy can be chosen to match the situation (Piyu, 2019). Vroom and Jago (2007, p. 19) state that "The traits of leaders reflect the mechanisms by which they are selected, and their behavior is constrained by the situations that they face." This definition translates into the most capable leaders match their style to the situation. Adaptability is the focus of this model of leadership, the needs of subordinates, and the requirements of the situation need to be considered (Piyu, 2019). An effective leader in situational theory adapts their style to lead with the forethought on the level of the job and psychological maturity of employees and whether to approach organizational goals based on the situation from a production-oriented or employee-oriented focus (McClesky, 2014). According to McClesky, effective leaders engage in a mixture of task and relation behaviors to meet objectives. Within situational leadership, according to Chris (2015), there are four styles:
- Tell/Direct – leaders assign tasks and how to perform them.
- Sell/Coach– leaders persuasively present ideas for subordinates to buy-into the process.
- Participate/Support – leaders provide less direction and allow employees to take more ownership over their tasks.
- Delegate/Empower – leaders assign and trust employees to meet objectives.
Professional Experience Example
In, my last position at a film studio in the home entertainment department leadership was more based on situational theory. The vice president, who was the head of the department and various executive directors who each were in charge of a group of project managers lead differently. The VP deligated to his direct subordinates. The executive director (ED) of the international group used telling as her preferred leadership style. The ED of direct to video fluctuated with telling, participating, and delegating depending on to whom she assigned work. The ED of children's media used more of a selling or coaching approach with her subordinates. The ED I worked directly with generally did telling and selling with most of his subordinates; however, with me, he used delegation. My tasks required a high-level competence and the complexity, and thus, he permitted me to act based on goals and boundaries we had agreed upon (Chris, 2015). I had much autonomy in that position, most of which had to do with the fact that others did not know how to perform my tasks which would make telling an ineffective approach. Upon being considered for the job I informed the ED my preferred style of being managed as I had a high level of competence and commitment and I knew certain management styles do not resonate with me and would make for a bad fit for both of us. I was thankful for his adaptability.
References
Chris, J. (2015, September 30). 6 Situational leadership style examples. Retrieved from http://www.josephchris.com/6-
McCleskey, J. (2014). Situational, transformational, and transactional leadership and leadership development. Journal of Business Studies Quarterly, 5(4). Retrieved from https://my.uopeople.edu/
Piyu (2019). Difference between contingency and situational leadership. Retrieved from https://www.differencebetween.
Vroom, V. H., & Jago, A. G. (2007). The role of the situation in leadership. American Psychologist, 62(1), 17. Retrieved from http://web.mit.edu/curhan/www/
wip5014. (2013, October 5). Contingency and situational approaches [Blog post]. Retrieved from https://sites.psu.edu/
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