Introduction

Leadership directly affects the organization’s culture and directly affects efficiency and
productivity in the workplace. Leaders help themselves and others to do the right things. They
set direction, build an inspiring vision, and create something new. Leadership is about mapping
out where you need to go to "win" as a team or an organization; and it is dynamic, exciting, and
inspiring.

The Situational Theory of Leadership

The situational theory of leadership suggests that no single leadership style is best. Instead, it
depends on which type of leadership and strategies are best-suited to the task. According to this
theory, the most effective leaders are those that are able to adapt their style to the situation and
look at cues such as the type of task, the nature of the group, and other factors that might
contribute to getting the job done.

This model suggests that effective leadership is dependent on two key behaviors: supporting and
directing. Directing behaviors include giving specific directions and instructions and attempting
to control the behavior of group members. Supporting behaviors include actions such as
encouraging subordinates, listening, and offering recognition and feedback.

The theory identifies four basic leadership styles, including:

 Directing (S1): High on directing behaviors, low on supporting behaviors.

Directing means to define the duties of workers and supervise them.
 Coaching (S2): High on both directing and supporting behaviors. Coaching means the
leader seek opinions from the workers but decisions are still made by the leader.
  Supporting (S3): Low on directing behavior and high on supporting behaviors.
Supporting means the workers has more control and the leader takes part in the
decisions.
 Delegating (S4): Low on both directing and supporting behaviors. Delegating means
workers decide and have control with leader getting involved when the worker requires
input from the leader. 

Example of Leader:

Elon Musk has founded some of the most innovative companies in the world, including X.com
(which later became PayPal), SpaceX, and Tesla Motors. He has also founded lesser-known
companies like Neuralink (a neurotechnology company) and The Boring Company (focused on
infrastructure and tunnels for transportation). 

1. Elon Musk’s supporting & participating leadership style:

Elon Musk has a drive that cannot be unseen. While Elon hasn’t directly stated that he applies
any one theory of leadership, his leadership behaviors across a variety of situations are neatly
described by the above model.  

One example in particular is exhibited in an email he sent out to Tesla employees in response to
a recently reported high rate of injury at one of his Tesla plants.  In part, he said, “It breaks my
heart when someone is injured…I’ve asked that every injury be reported directly to me, without
exception…I would like to meet with each injured individual so I can understand, from them,
exactly what we need to do to make it better…Then I will then go down to the production line
and perform the same task that they perform…[Managers at Tesla] lead from the front line, not
from some safe and comfortable ivory tower” (Haden, 2017).

In this impressive email, Elon exhibited two of the four styles of leadership outlined in
Situational Theory of Leadership i.e. Supportive Leadership and Participative Leadership. 
First, Elon utilizes Supportive Leadership by connecting with his subordinates and their injuries,
stating he hurts with them and is concerned about their well-being.  He further engages in this
style of leadership by saying he wants to make their work safer.  This ties in perfectly with
Supportive Leadership, which requires a leader to attend to the well-being and needs of their
subordinates and make their work as pleasant as possible.

Second, Elon states he will meet with these injured employees and get input from them on how
to go about making their job safer, and then will perform the same task to fully understand the
employee’s perspective.  At this point, Elon shifts into Participative Leadership, which requires a
leader to involve followers in decision-making by consulting with subordinates to get their
opinions and input.  Elon appears to have understood that this situation of injured workers did
not call for directive or achievement-oriented leadership, but rather supportive and participative. 

Make it safe to fail. One of the many reasons Musk’s companies can innovate the way they do
is because Musk is a big believer in psychological safety. He knows that his employees need to
feel like they can fail without fear of repercussions or reprimands. That’s a valuable lesson for
any leader who wants to spearhead an innovative and boundary-pushing team.

2. Employee’s Empowerment:

Elon Musk’s Tesla has been following a policy of empowerment and culture. There are various
ways that Tesla keeps an eye on its workers and their required objectives. The idea of
empowerment in its employees makes it easier to be more innovative. The company's
measurement of its employee performance is based on its productivity and the number of cars
produced or the number of inquiries catered to and complaints handled. There is technological
excellence, and this gives Tesla a competitive edge. The employees are kept up to date so they
can exercise their productivity freely. If one was to consider Maslow's hierarchy, there is a
certain level of motivation required for employees to succeed. Therefore, in today's world, there
needs for the employee to be "externally motivated. Vroom's theory can also emphasize on being
successful by having the right type of access to machinery and tools."This can be seen by Tesla
and its management as they provide the technological advances to equip their employee with the
best.

3. Transformational Leadership style:

  Elon Musk is known for his aggressive attitude towards successful innovation, which can be
seen through his innovative products that he and his respective team have launched. The tesla
company has aimed to provide the most innovative products to its customers for which he uses
the transformational leadership style which emphasises on innovation and development of the
skills of the employees that helps the company to perform better and create a competitive
environment for the rivals by bringing in innovation within the company 

He believes there’s a better way to do everything, and he sets his sights on constant
improvement. He has big ideas and wants to unite his team around his vision and
objectives. Elon Musk does not have a democratic or aristocratic way of leadership. Instead, he
has an autocratic or transformational way of leadership. There is full disclosure of his goals
throughout the organisation, and he makes his learning environment known. He has a quest for
continuous improvement, and hence he has to correlate his employee's productivity with their
satisfaction levels directly. A transformational leader inspires his employees. However, this is
limited to his being and extends to challenging his employees on an intellectual level and setting
an example via his actions. He has also suggested that "they feel a part of a larger team and by
reducing the noise and blockers in their work."

4. Elon Musk’s Coaching behavior

Communication is substantial when it comes to good leadership. There needs to be an

understanding between the employee and the employer on what is required. There is a certain
level of autonomy within Tesla. The information is not limited to the management, and there is
an interconnectedness within the departments that paints a bigger picture than just a top-down
approach. A learning culture is implemented where change is embraced, and there is training to
cover up the shortcomings of the employees. Trusting the employee with responsibility is
another trick he has up his sleeve. They are then held accountable for their actions. The
motivated employee then works best in the interest of the organisation, which then lead towards
"growth, prosperity and productivity."