The Industrial Revolution And The Emergence Of Giant Corporations

752 Words Dec 13th, 2016 4 Pages
After the industrial revolution and the emergence of giant corporations in Europe Max Weber realized the old aristocracies could not provide the new kind of leadership that was necessary to lead these corporations in the 20th century. Weber’s bureaucracy helped to eliminate the absolute power inherited by privileged social classes. He envisioned an organization that was rational, logical, impersonal, formal, predictable, and systematic (Owens & Valesky, 2015).
Leaders try to create organizations that are based on their convictions, on what they perceive as right. Therefore if leaders believe that bureaucracies create efficiency and productivity, they will focus on creating a bureaucratic environment. If they subscribe to the ideas of Theory Y, which states that people at work will exercise initiative, self direction, self control, once they are committed to the objectives of the organization, then leaders will create an organization that supports high motivation levels and effort (Owens & Valesky, 2015). Environments such as theory Y encourage personal growth and development among employees and in the organization. The ability to solve emerging problems in an organizational environment inspired James McGregor Burns (1978) to developed the theory of transformational Leadership which is a “style of leadership where a leader works with subordinates to identify needed change, creating a vision to guide the change through inspiration, and executing the change in tandem with…

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