Leadership theories implied by the article
The article identifies three leaders John Boehner (House speaker),Eric Cantor(majority leader), and Bill Daley’s(Chief of staff) who use their leadership position to use certain theories in leading their followers. They use their intelligence and cognitive ability to note that a reform in taxes was capable of producing $800 billion in new generated revenues over the following ten years since it would encourage growth and close various loopholes. It was in response to an anti tax promise taken by house republicans. They thought that tax idea would raise revenues and thus not break the pledge. Tax reform was enough to conduct a grand bargain. The three leaders expressed use of trait theory in their leadership. Below is an explanation of trait theory.
Trait theory explains that people are supposedly born with or without qualities that contribute to success in their leadership roles. It assumes that effective leadership is brought by cognitive ability and personality among other inherited qualities. It adds that good leadership is a combination of disagreements, social life and drive and intelligence.
The leaders express use of skills theory since they understand that increase of taxes would increase revenues which would benefit other sectors in the economy. From their calculations they indicate that tax reform would contribute $1-7 trillion in spending cuts and increase of age among beneficiaries of Medicare from 65 to 67 among other cuts. Cantor and Boehner argued that reduction of deficits would also benefit from tax reforms. In addition they would also lead a grand bargain to increase in their borrowing limits. Below is a discussion of skills theory used.
Skills theory explains that effective leadership is not contributed by inherited characteristics but it is brought by learned skills and abilities. It argues that developed style, learned skills, and acquired knowledge are most important factors in effective leadership. It brings the important of training and development programs offered to leaders.
Situational theory is the core of these arguments among the three leaders. By this time America had experienced larger accumulated deficits, unemployment, among other problems expressed by the citizens. Obama among other leaders thought of cutting health care benefits for the old and increasing their ages, terminating Independent payment advisory board, hiking taxes, and deducting employer payroll tax holiday ,and discussing about Obama care.
Situational theory argues that different situations demand for different leadership styles. Therefore, effective leaders adapt their styles according to the prevailing circumstances of that situation. Primary factors such as competence assessment and commitment of employees are good determination factors of how leaders adapt to differing situations. It dictates which styles to be used by leaders either supportive or directive.
Boehner attempted to convince Obama that it was not among the best times in their country to increase taxes since they were facing great challenges in spending. He promised that he would be serious and confident to act as a bipartisan leader in case the White house will not act quickly.
Contingency theory explains that effectiveness of a leader depends on the match of the situation with the style used by the leader. The three leaders have tried to match the current situation of their citizens with their styles of leadership.
Transformational theory explains that leadership is a process of engaging with other people thus creating connections, which results in morality and motivation of their followers. It is joined to charismatic theory, which argues that leaders possessing qualities such as extroversion, clear values and confidence fit best in motivating other people. Transformational leadership enables leaders to pay attention to the needs of their followers as a way of trying to help them meet their full potential.
Transformational theory is greatly used by these leaders in that they attempted engaging Members of republican party and other members and explained the current condition of the country. Obama made them pledge that they would allow tax reform to gather enough money and increase their borrowing limits to decrease deficits from their budgets. Obama went t o an extent of calling other leaders at night to discuss tax reform issue. As a result his followers paid attention to his proposal and began giving ideas on what should be cut like eliminating payment advisory board.
President Obama was interested in transforming his followers to take his grand bargain of increasing taxes which would increase revenues. He called many meetings with other leaders like Boehner and insisted that he was ready to introduce another idea to increase revenues in the country. He bet to increase individual mandates and responsibilities among other entitlements which were geared towards reducing deficits. Although Boehner could not visualize how revenues could increase by 50% from $400 billion to $ 800 billion, without having them to break their pledges and increase taxes,Oboma explained it to him and made him change his attitude on this.
Servant leadership theory
The theory explains that all leaders must first become servants. In addition, they should consider needs of their followers and customers ahead of their personal interests to be extra effective. These leaders used this theory since they observed the needs of their followers such as lack of employments and searched for ways of solving the problem like reforming taxes to accumulate revenues for creation of additional jobs.
The inside story of Obama and Boehner’s second Failed Grand Bargain.