Stewardship and Agency Theories of Leadership
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Stewardship and Agency Theories of Leadership
There are several theories that have been advanced to explain leadership of firms. Among these theories are the stewardship and agency theories of leadership. Stewardship theory is focused on producing desired outcomes from a leader in a reliable manner by explaining the teachings of the Bible and how they are applicable in an individual’s performance of leadership duties (Van Puyvelde et al., 2012). On the other hand, agency theory is focused on ensuring firm performance by the manner of cost minimization and greater efficiencies (Van Puyvelde et al., 2012). Although there concepts of these …show more content…
In agency theory, the motivation for the agent is founded on measurable values. This is said to be extrinsic rewards which are the foundation for the reward mechanisms that depict the control systems of agency theory (Cuevas-Rodriguez, et al., 2012). Stewards are more organizational-centric and put individual goals below organizational goals. Stewards also put their focus on intangible rewards such as opportunities for growth, achievement, well-being, and affiliation. Stewards have a personal reward agenda that they achieve by attaining organizational goals. However, it should be noted that both agency and stewardship theories put emphasis on maximizing the profits for the stakeholders or …show more content…
The creativity of employees should be promoted through managerial stewardship. The stewardship trait of leaders in a company helps the employees enhance their good perceptions and feelings towards the firm in the long-run. Stewardship supports employee creativity by giving them a sense of security about their positions and role in the firm. Stewardship also promotes intrinsic motivation as the individuals take responsibility for their tasks in ensuring the success of the firm. However, it should be noted that stewardship is more of an underlying behavior or attitude-like notion rather than a leadership style. If an individual’s leadership style and stewardship conduct complement each other, then the organization will realize better
Student’s Name
Institutional Affiliation
Stewardship and Agency Theories of Leadership
There are several theories that have been advanced to explain leadership of firms. Among these theories are the stewardship and agency theories of leadership. Stewardship theory is focused on producing desired outcomes from a leader in a reliable manner by explaining the teachings of the Bible and how they are applicable in an individual’s performance of leadership duties (Van Puyvelde et al., 2012). On the other hand, agency theory is focused on ensuring firm performance by the manner of cost minimization and greater efficiencies (Van Puyvelde et al., 2012). Although there concepts of these …show more content…
In agency theory, the motivation for the agent is founded on measurable values. This is said to be extrinsic rewards which are the foundation for the reward mechanisms that depict the control systems of agency theory (Cuevas-Rodriguez, et al., 2012). Stewards are more organizational-centric and put individual goals below organizational goals. Stewards also put their focus on intangible rewards such as opportunities for growth, achievement, well-being, and affiliation. Stewards have a personal reward agenda that they achieve by attaining organizational goals. However, it should be noted that both agency and stewardship theories put emphasis on maximizing the profits for the stakeholders or …show more content…
The creativity of employees should be promoted through managerial stewardship. The stewardship trait of leaders in a company helps the employees enhance their good perceptions and feelings towards the firm in the long-run. Stewardship supports employee creativity by giving them a sense of security about their positions and role in the firm. Stewardship also promotes intrinsic motivation as the individuals take responsibility for their tasks in ensuring the success of the firm. However, it should be noted that stewardship is more of an underlying behavior or attitude-like notion rather than a leadership style. If an individual’s leadership style and stewardship conduct complement each other, then the organization will realize better