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During the industrial revolution in the 18th century, researchers and analysts have grappled with defining the most efficient ways to run a company. The leadership style of a company's leader and how they employ that style to inspire employees is pivotal for the company's triumph. It is widely acknowledged that motivated employees yield greater contributions to a company's profits. This article seeks to examine the Path-Goal theory, its correlation with leadership, and James Parker, CEO of Southwest Airlines, and his implementation of it in the day-to-day operations of the company.
The Path-Goal theory, developed by Robert House, diverges from Fiedler's Contingency theories by focusing on the leader's direct behavior in each situation. House aims to incorporate a larger emphasis on the manager's ability to facilitate the employee's maximum potential, thus complementing the Contingency theories. However, the responsibility for achieving outcomes is primarily placed in the hands of the manager. The Path-Goal theory relies on other theories of motivation and leadership styles and can be categorized into three components: Motivation, Leadership, and Situation.
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Motivation can be defined as "explaining why people do what they do" (Bridge 1). The Path-Goal model relies on the Expectancy Theory of Motivation, which states that an individual's motivation is influenced by valence and expectancy (Wu 1). A perceptive leader can utilize various factors to achieve the best results once an individual's motivation has been established.
Proficient managers understand the importance of communicating their sentiments and observations regarding an employee's performance. When assessing an employee's effectiveness, managers often focus on aspects related to the Expectancy Motivation Theory.
Key elements for successfully implementing this theory include: implementing reward systems based on performance, offering constructive guidance, serving as a positive role model for subordinates, and addressing obstacles that hinder subordinates from achieving their goals.
The Path-Goal Theory includes the leadership style and how effectively it is applied. There are four leader behaviors typically associated with leadership-style theories: directive, supportive, participative, and achievement-oriented. Directive leadership is used when a leader assigns specific expected behavior and desired outcomes. Supportive leadership involves a charismatic leader who establishes a more friendly relationship with their subordinates. Participative leadership occurs when a leader trusts the judgment of their subordinates and seeks their consultation. Achievement-oriented leadership occurs when a leader sets clear goals and expects successful fulfillment of those goals.
The situational portion of the Path-Goal theory consists of three components: employee factors, environmental factors, and the specifics of the task. Environmental factors encompass the employees' 'Locus of Control', their proficiency and ability to complete the task successfully, and the satisfaction they will derive from completing it. It is crucial for a skilled manager to recognize the importance of each component and ensure that these needs are adequately addressed and met.
The leader's ability to manipulate the environmental factors is limited, regardless of their expertise, and these factors are often considered fixed variables. Examples of environmental factors are task structure, authority system, and work group (Robbins 494). Other factors that can greatly affect the outcome of a situation are the level of support from team members and the clarity of task expectations. There are many resources available for further exploring and understanding how these components impact different parameters. One helpful resource was a flow-chart illustration in an article titled "Motivation, Leadership, and Communication", which provided insight into the influence of these factors on the outcome.
The Path-Goal Theory proposes that a leader can impact a subordinate's expectancy by clarifying the relationship between their actions and the desired result. This desired result is the goal that the employee aims to accomplish. The success of a leader's behavior in achieving this goal depends on situational factors (WU 1). By comprehending The Path-Goal Theory and its elements, we can now examine how it applies to James Parker's leadership style.
James Parker, who was born in 1947 in San Antonio, earned his Bachelors degree from the University of Texas in 1969. He then went on to pursue his law degree at the same university for two years. During the early stages of his professional journey, James gained valuable experience working at the Texas Attorney General's Office.
In 1979, while still at the Attorney General's Office, James took advantage of an opportunity to join a law firm led by Herb Kelleher (Zellener 2). This decision proved to be instrumental in shaping his future career at Southwest Airlines. Inspired by Herb Kelleher's dynamic approach and leadership style, James joined Southwest as a member of their General Council in 1986 (Zellener 5).
On June 19th of 2001, Kelleher retired and left his role to be filled by James Parker as acting president and Colleen Barrett acting as COO (Goett). Kelleher's departure strategy included pairing up Parker and Barrett to enhance their decision-making capabilities. Both analysts and critics agree that both Barrett and Parker are deserving of their promotions. While James has maintained a low-profile in the public eye, he has exhibited a strong work ethic. In a recent interview, an anonymous analyst observed that "Southwest has distinguished itself as the airline with excellent labor relations, thanks to the hard work and efforts of the team."
Parker and his team intentionally decided to identify important aspects of employee motivation and satisfaction and ensure that these needs are addressed and fulfilled. Parker mentions that he focused on ensuring job security and promoting employee involvement in profit-sharing. He also mentions that due to their efficient operations, their airline was the only one in the industry to remain profitable in the early 1990s. As an effective leader for his team, some examples of actions demonstrated by James include taking a pay cut of a quarter of his annual salary during challenging financial times for the company.
James and Colleen have faced recent obstacles related to the tragedies of September 11th. Financial analysts criticized James Parker's leadership practices when he decided to pay all employees their regular wages during the crisis. This decision cost the company 5.2 million dollars per day. Despite the criticism, James continued this approach for three days until normal business operations could resume. This event was crucial in showcasing James' ability to adapt his leadership style based on the situation at hand. It proved that he was capable of stepping into a transformational role and providing strong support to his employees during a time of crisis.
Parker has made efforts to create a workplace where employees feel encouraged to interact with senior officials, which has resulted in optimal communication with decision makers. A small example of this was when James joined Southwest and gave a keg of beer as an office warming gift to the general counsel. James has openly discussed the importance of finding a balance between passivity and ego-driven behavior (Zellener 6).
James Parker, a leader who does not have long term business plans, creates a workplace characterized by constant change and ambiguity. This necessitates directive leadership to successfully adapt to the ever-evolving working environment. Despite this potentially chaotic atmosphere, James effectively leads by equipping his employees with the necessary tools for success.
Despite James being seen as relatively reserved compared to Kelleher, he has shown his willingness to address both internal and external issues. When Southwest Airlines bid farewell to Kelleher and welcomed Parker as president, the company's stocks were under scrutiny. This was during a time when the perception was that airlines were facing a recession along with the rest of the economy. Parker adopted a direct leadership approach, aiming to maintain the support and confidence of his subordinates by directly confronting skeptical analysts. Southwest's performance was being questioned due to a decrease in traffic growth-rate. Rather than avoiding this negative news, James chose to confront it head-on (Ott 1).
James Parker has consistently earned the trust and respect of colleagues at Southwest Airlines. Southwest is widely regarded as a top company to work for. Despite this, James remains committed to prioritizing employee satisfaction. As a result, Southwest has seen increased employee morale and loyalty, leading to enhanced productivity. Another example of Parker's dedication to including employees in the company's success is his decision to distribute government grants aimed at boosting the economy among all participants in the Southwest profit-sharing plan.
James at Southwest Airlines openly recognizes that his salary is significantly lower than that of other major airline presidents. This is crucial because Southwest is not known for providing generous compensation. James' willingness to lead by example has fostered trust among employees, who now believe in the corporation. As Zellener notes, "Parker is now able to offer raises and stock options at a time when other airlines talk of sacrifice." This situation has recently allowed employees to appreciate how Southwest values its workforce. Consequently, this understanding and recognition have given Southwest a competitive advantage by improving employee retention.
In conclusion, it is logical to assume that leaders in similar positions as James often overlook the crucial aspect of employee satisfaction in service-related industries like Southwest Airlines. James Parker's effective use of his authority to prioritize maintaining a high level of employee satisfaction has demonstrated that Southwest will not suffer from issues such as low employee retention. Despite the complexity of the Path-Goal theory and the need to optimize various variables, Parker has proven his mastery of this ability by incorporating many key concepts from the theory.
Path-Goal Theory: Leadership, Motivation, and Implementation. (2016, Jun 26). Retrieved from https://studymoose.com/the-path-goal-theory-essay
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