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Table of Contents
1. Introduction ................................................................................................................. 4
2. Literature Review ........................................................................................................ 5
2.1. Trait theory/ Great Man theory ............................................................................. 5
2.1.1. Great Man Theory .............................................................................................. 5
2.1.2. Trait Theory of Leadership ................................................................................ 5
2.2. Behavioral Theories .............................................................................................. 6
2.2.1. The University of Ohio Study......................................................................... 6
2.2.2. The University of Iowa Study......................................................................... 7
2.2.3. The Blake and Mouton Managerial Grid Model ............................................ 8
2.3. Contingency/Situational Theories ......................................................................... 8
2.3.2. Hersey-Blanchard Situational Leadership Theory ......................................... 9
2.4. Contemporary Theories ....................................................................................... 10
2.4.1. Transformational Leadership ........................................................................ 10
2.4.2. Transactional Leadership .............................................................................. 11
2.4.3. Charismatic Leadership ................................................................................ 11
2.5. The history of Margaret Thatcher ....................................................................... 11
2.5.1. Margaret Thatcher: Childhood and Education ............................................. 12
2.5.2. Margaret Thatcher Enters Parliament ........................................................... 12
2.5.3. Margaret Thatcher Becomes First Female Prime Minister .......................... 12
2.5.4. Margaret Thatcher’s Fall From Power and Death ........................................ 13
2.6. Main Events under the leadership of Margaret Thatcher .................................... 13
2.6.1. The Winter of Discontent (1978-1979) ........................................................ 13
2.6.2. Falklands War (1982) ................................................................................... 13
2.6.3 Milk Snatcher (1971) ..................................................................................... 14
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2.6.4 End the Cold War (1989) ............................................................................... 14
3. Margaret Thatcher Leadership Style Analysis .......................................................... 14
3.1. Traits Theory/Great Man Theory ........................................................................ 14
3.1.1. Great Man Theory ......................................................................................... 14
3.1.2. Trait theory ................................................................................................... 15
3.2. Behavioral Trait Theory ...................................................................................... 16
3.2.1. The University of Ohio Study....................................................................... 16
3.2.2. The University of Iowa Study....................................................................... 17
3.2.3. The Blake and Mouton Managerial Grid model ........................................... 18
3.3. Contingency/Situational Theories ....................................................................... 19
3.3.1. Fiedler’s Contingency Theory ...................................................................... 19
3.3.2. Hersey-Blanchard Situational Leadership Theory ....................................... 22
3.4 Transactional Theory of Leadership .................................................................... 23
4. Strengths and Weaknesses of Margaret Thatcher’s Leadership Styles ..................... 24
4.1. Strengths .............................................................................................................. 25
4.2. Weaknesses ......................................................................................................... 26
5. Lessons and recommendations .................................................................................. 26
REFERENCES .............................................................................................................. 27
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1. Introduction
When we talk about leadership, we nearly usually refer to it in the context of the
workplace. The value of leadership and competent leaders in society is grossly
underappreciated. Leadership is not restricted to the corporate setting. It should be
extended to society as well, because it began as a social phenomenon long before it
became a professional phenomenon.
Leadership in society is essential because someone must be able to structure human
society and help it develop and expand in a responsible manner. Humans have naturally
been separated into leaders and followers, and the leaders make and lead the way for the
followers while they accomplish the assigned responsibilities and contribute to the
change.
Leadership styles have clearly altered dramatically during the last decade. When we
look at leaders from the twentieth century, we find visionary, and charismatic leaders.
Leadership teachings of most of the twentieth century focused on directive, autocratic
(or at least top-down) management. The autocratic style was made famous by certain
military and political leaders.
Between November 1978 and March 1979, in a case of British society, this country
witnessed the most pervasive wave of strikes—including gravediggers, hospital
cleaners, truck drivers, … who rejected the Labour government’s attempt to impose
wage limits in the face of rising inflation (the inflation rate running at 24.24% in 1975).
Garbage piled up, bodies went unburied, and snow-bound roads went uncleared. It is
considered as one of the most terrible crises in Britain with the call “The Winter of
Discontent” (López, 2014).
The recurrent Britain situation felt as if there were no way back. However, between May
1979 and November 1990. A leader named Margaret Thatcher – the first female Prime
Minister of Britain in this period, changed everything. With a talent of leadership, a
woman with headstrong, obstinate and dangerously self-opinionated restored Britain’s
position in the world. Margaret Thatcher is also well-known with the name “The Iron
Lady” from Soviet Newspapers (John and Blake, 2012). As the nick name, her true
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leadership styles were all about authenticity, standing up for principles, even (maybe
especially) in the face of strong opposition.
2. Literature Review
To go deeper into how Margaret Thatcher managed her country during crisis and a
recovery process of Britain under the leadership of Margaret Thatcher, we should first
understand the notions of different leadership styles, along with information about
Margaret Thatcher and the major events mentioned in this assessment.
2.1. Trait theory/ Great Man theory
2.1.1. Great Man Theory
In the beginning, the assumption behind trait theory was that “leaders are born and not
made”. This concept was popularly known as the “Great Man Theory” of leadership.
This theory has been “focused on identifying innate qualities and characteristics
possessed by great social, political, and military leaders” (Northouse, 2019). The great
man theory was originally proposed by Thomas Carlyle in 1949 and the assumption
behind this theory is that “great leaders will arise, when there is great need”. The theory
also assumes that a leader cannot be a normal person and they are different from the
average person in terms of personality traits such as intelligence, perseverance and
ambition (Sadik, 2019).
2.1.2. Trait Theory of Leadership
A modification and more systemized version of the Great Man Theory is the Trait
Theory, which argues that leadership qualities or traits can be acquired. They need not
always be inborn. The trait theory of leadership states that there are certain identifiable
qualities or characteristics that are unique to leaders and those good leaders possess such
qualities to some extent. Thus, the trait theory indicates that leadership qualities may be
inborn or they may be acquired through training and practice (Chow et al., 2017).
According to the books “Fundamentals of Management” (p.429), and “Leadership:
Theory and Practice” (p.65-67), numerous studies and researches were conducted to
determine which traits were most associated with distinguished leaders, with the
majority of studies identifying the following eight traits:
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2.2. Behavioral Theories
Research on the behaviors exhibited by leaders was done in the 1940s, in addition to
studies on the characteristics of leaders. Kurt Lewin, a psychologist, and his colleagues
conducted the first comprehensive study on leadership associates recognizing three main
leadership philosophies—autocratic, democratic, and laissez-faire—in 1939. While the
characteristics theory makes the claim that "leaders are born, not made," behavioral
theories make the claim that particular leadership behaviors may be learned and
practiced through time. The behavioral theories focus on "what the leaders do," as
opposed to the trait theory's emphasis on "what the leaders are." Three main behavioral
studies of leadership have been discussed in this section. They are as follows:
2.2.1. The University of Ohio Study
The study conducted by E.A. Fleishman, E.F. Harris, and H.E. Burtt at Ohio State
University in 1945 is regarded as one of the most important investigations to emerge on
behavioral theories (Northouse, 2012). According to the study, the different leadership
behaviors consist of two kinds:
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• Initiating structure behaviors are essentially task behaviors, including such acts
as organizing work, giving structure to the work context, defining role
responsibilities, and scheduling work activities.
• Consideration behaviors are essentially relationship behaviors and include
building camaraderie, respect, trust, and liking between leaders and followers.
The findings of the study stated that the most effective leadership style is the situation
high initiating structure and high consideration behaviors (Northouse, 2012).
2.2.2. The University of Iowa Study
At the University of Iowa, Lewin, Lippitt, and White identified and studied the impacts
of three styles of leadership:
• Authoritarian Leaders: Authoritarian leaders provided clear expectations for
what needed to be done, when it should be done, and how it should be done.
• Democratic Leaders: Democratic leaders offered guidance to group members, but
they also participated in the group and allowed input from other group members.
• Laissez-fair leaders: Laissez-fair leaders offered little or no guidance to group
members and left decision-making up to group members.
The findings of this study suggests that in the long run, the most effective leader
behavior is democratic leadership.
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2.2.3. The Blake and Mouton Managerial Grid Model
Building on the work of the researchers at these
Universities, Robert Blake and Jane Mouton
(1960s) proposed a graphic portrayal of
leadership styles through a managerial grid The
grid depicted two dimensions of leader
behavior, concern for people (accommodating
people’s needs and giving them priority) on yaxis and concern for production (keeping tight
schedules) on x-axis, with each dimension
ranging from low (1) to high (9), thus creating
81 different positions in which the leader’s
style may fall.
According to Blake and Mouton, the most effective leadership is team leadership, with
the highest level of behaviors concern for results (production) and concern for people
(employee).
2.3. Contingency/Situational Theories
2.3.1. Fiedler’s Contingency Theory
Fiedler’s Contingency Theory, also known as Fiedler’s Contingency Model or Fiedler’s
Theory of Leadership, states that there is not one best style of leadership. Rather, the
most effective leadership style for any given situation is one that aligns with the situation
at hand.
The theory was developed in the 1960s by Austrian psychologist, Professor Fred Fiedler.
Fiedler determined that a leaders’ ability to succeed rests on two factors: Natural
leadership style and Situational favorableness. Leaders’ natural style can be assessed by
the LPC scale to see whether they are task or relationship-oriented. Meanwhile,
situational favorableness is determined by three variables: Leader-member relations,
Task structure and Position power.
He studied leaders’ personalities and characteristics and came to the realization that
leadership style, since it is formed through one’s life experiences, is near impossible to
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change (Team Asana, 2022). Therefore, when the leader’s leadership style does not
match the situation, they can either delegate to the right leader or change the situation.
In conclusion, when the leader-follower relations are good, the tasks are planned or
structured, and leader's position power is high, the most effective leadership is task
motivated leadership. On the contrary, when the leader-follower relations are weak, the
tasks are unplanned or unstructured, and the leader's position power is low, the most
effective leadership is still tasked motivated leadership. When the leader-follower
relations are moderate, the tasks are moderately planned or structured, and the leader's
position power is moderate, the most effective leadership is relationship motivated
leadership.
2.3.2. Hersey-Blanchard Situational Leadership Theory
Hersey and Blanchard developed four types of leadership styles based on the task and
relationships that leaders experience in the workplace. According to the study, these are
the key findings:
• The Hersey-Blanchard Model suggests no leadership style is better than another.
• The model suggests managers adapt their leadership style to tasks and relationships
in the workplace.
• The model's leadership styles are related directly to the different maturity categories
of followers or employees.
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2.4. Contemporary Theories
2.4.1. Transformational Leadership
Transformational leadership is characterized by leaders who inspires, motivates and
empowers followers to reach a common goal. According to James MacGregor Burns
and Bernard Bass, transformational leaders share four key attributes: idealized
influence, inspirational motivation, intellectual stimulation, and individualized
consideration. This creates a culture of excellence and high performance in the
organization. Numerous studies have found that transformational leadership is
associated with increased employee satisfaction, engagement, commitment, job
performance, and motivation. However, this style may not work for everyone and may
be more effective in certain industries or contexts. Despite its potential limitations,
transformational leadership continues to be a popular and effective leadership style in
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many modern workplaces. It prioritizes relationships, communication, and
empowerment to create a culture of engagement that benefits both employees and
organizations.
2.4.2. Transactional Leadership
Transactional leadership is a leadership style that focuses on clear expectations, rewards
for meeting goals, and consequences for not meeting them. It is effective in bureaucratic
and routine situations, positively correlated with job satisfaction and performance, and
effective in improving organizational commitment and reducing turnover. However, the
benefits are limited to consistent and fair rewards systems, and may discourage
innovation and creativity. One study by Judge and Piccolo (2004) found that
transactional leadership was positively correlated with job satisfaction and job
performance. However, the study also found that this effect was limited to situations
where the tasks were routine and predictable. In situations where the tasks were more
complex or required creativity, the effect of transactional leadership on performance
was much weaker. Another study by Podsakoff, MacKenzie, and Bommer (1996) found
that transactional leadership was effective in improving organizational commitment and
reducing employee turnover. However, the study also noted that this effect was largely
tied to the consistency and fairness of the rewards system.
2.4.3. Charismatic Leadership
Charismatic leadership emphasizes the leader's personal qualities to inspire followers to
achieve a common goal. This leadership style has been studied extensively, particularly
in terms of the leader's ability to influence and motivate followers, act as a role model,
and operate in a culture that values innovation and creativity. However, charismatic
leadership can also have limitations, such as a focus on personal goals and
organizational dysfunction. Despite this, charismatic leadership remains an important
area of study in modern leadership theory and practice.
2.5. The history of Margaret Thatcher
Margaret Thatcher (1925-2013), the United Kingdom’s first female Prime Minister,
served from 1979 until 1990. Nicknamed the “Iron Lady,” she opposed Soviet
communism and fought a war to maintain control of the Falkland Islands. The longest11
serving British prime minister of the 20th century, Thatcher was eventually pressured
into resigning by members of her own Conservative Party.
2.5.1. Margaret Thatcher: Childhood and Education
- Margaret Hilda Roberts was born on October 13, 1925, in a small town of England.
Her parents were middle-class shopkeepers and devout Methodists. Her father was also
a politician, serving as a town council member before becoming an alderman in 1943
and mayor of Grantham from 1945 to 1946.
- Thatcher matriculated at Oxford University in 1943, during the height of World War
II.
- After graduation she worked as a research chemist, but her real interest was politics.
In 1950 she ran for parliament in the Labour-dominated constituency of Dartford but
she lost that year and again in 1951, but received more votes than previous Conservative
Party candidates.
2.5.2. Margaret Thatcher Enters Parliament
- In December 1951 Margaret married Denis Thatcher, a wealthy businessman. Less
than two years later she gave birth to twins, Carol and Mark. Meanwhile, she was
studying for the bar exams, which she passed in early 1954. She then spent the next few
years practicing law and looking for a winnable constituency.
- Thatcher ran for parliament once more in 1959 and easily won the seat. Speaking about
the bill in her maiden speech, she focused not on freedom of the press but instead on the
need to limit wasteful government expenditures—a common theme throughout her
political career.
- By 1961 Thatcher had accepted an invitation to become parliamentary undersecretary
in the Ministry of Pensions and National Insurance. She then steadily moved up the
ministerial ranks, becoming secretary of state for education and science when the
Conservatives retook power in 1970.
2.5.3. Margaret Thatcher Becomes First Female Prime Minister
Thatcher was now one of the most powerful women in the world. At her first conference
speech, she chastised the Labour Party on economic grounds, saying, “A man’s right to
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work as he will, to spend what he earns, to own property, to have the state as servant
and not as master—these are the British inheritance.” Soon after, she attacked the Soviet
Union as “bent on world dominance.”
2.5.4. Margaret Thatcher’s Fall From Power and Death
After Thatcher was elected to a third term in 1987, her government lowered income tax
rates to a postwar low. It also pushed through an unpopular “community charge” that
was met with street protests and high levels of nonpayment. On November 14, 1990,
former Defense Minister Michael Heseltine challenged her for leadership of the party,
partly due to differences of opinion on the European Union.
Thatcher won the first ballot but by too small of a margin for outright victory. That night,
her cabinet members visited her one by one and urged her to resign. She officially
stepped down on November 28 1990.
In 2013, she died of a stroke at the age of 87.
2.6. Main Events under the leadership of Margaret Thatcher
2.6.1. The Winter of Discontent (1978-1979)
The Winter of Discontent was a wave of the most pervasive strikes in Britain in 19781979 due to the increasing of inflation rate running at 27% in 1975. James Callaghan,
Prime Minister and member of the “Labour” party during the Winter of Discontent, had
put restrictions against wage increases into place in an attempt to combat inflation - a
limit of 5% on wage increases. It is considered as one of the most terrible crisis in Britain
with the call “The Winter of Discontent”.
By having a negative public image by the Winter of Discontent, Callaghan losing the
seat of Prime Minister to Margaret Thatcher, a member of the Conservative party in
1979.
2.6.2. Falklands War (1982)
An event happened when Argentina’s military junta invaded the Falkland Islands, a
British colony. Under Thatcher’s leadership, on April 5, 1982, the British government
sent a naval task force 8,000 miles into the South Atlantic to take on the Argentine forces
in advance of an amphibious assault on the islands. The British fleet ultimately included
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38 warships, 77 auxiliary vessel and 11,000 soldiers, sailors and marines. The conflict
lasted 74 days and ended with the Argentine surrender on June 14, 1982.
2.6.3 Milk Snatcher (1971)
The program had its beginnings in 1940 when children and pregnant women were issued
milk to prevent malnutrition that might be brought about by wartime shortages. Thirty
years later with Britain mired in an economic crisis, Thatcher claimed that the free milk
was too expensive and proceeded to steer through legislation limiting it to children under
the age of seven in order to keep the promise of reducing taxes.
2.6.4 End the Cold War (1989)
The Cold War began just after the Second World War with the Soviet takeover of
Eastern Europe. Political leadership played a decisive role in bringing about such
dramatic change. Central to it was the triangular relationship of Mikhail Gorbachev,
Ronald Reagan and Margaret Thatcher. Margaret Thatcher played an important role in
the peaceful end of the Cold War in Europe. A staunch conservative, she balanced a
tough line on Communism with skillful personal diplomacy with President Reagan and
Soviet leader Michael Gorbachev.
3. Margaret Thatcher Leadership Style Analysis
3.1. Traits Theory/Great Man Theory
3.1.1. Great Man Theory
In consideration of what she had achieved, Margaret Thatcher adheres to the Great Man
Theory. Some even called her the Great Woman of her time (Winks and Thatcher, 1994).
Given that she is a woman, some might wonder how that is even possible. In fact, it only
demonstrates how much more she fits. “Great leaders are born with particular
characteristics that enable them to climb and lead”. Knowing Margaret Thatcher's
character and personality is essential to understand her policies and how they were
carried out. Margaret Thatcher is recognized for her starkness. In order to become the
first female prime minister and "play with the big boys," one must possess a great deal
of strength, fearlessness, and enthusiasm. Thatcher did not accept "no" as an answer;
she succeeded in a field that was predominately male. She was quite direct and did not
put up with being patronized (Samplius, 2021).
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In addition, as a woman doing politics, Thatcher is held to a different set of criteria.
Many anticipate that women will not be as productive as males. Even by those
expectations placed on men, she excelled despite all the odds, on behalf of them. She
accelerated economic expansion in Britain and produced numerous changes that altered
the Great Britain. Margaret Thatcher was a person who was destined to accomplish great
things and guide a population toward development and prosperity. As many agreed,
Margaret was definitely born to lead and deserved to do so because of their innate
qualities and talents (Cecilia, 2015).
3.1.2. Trait theory
It is evident that Margaret Thatcher portrayed most of the desirable traits for a prominent
leader as identified in the Literature review. The rationale and explanation for why she
possessed these characteristics are provided below.
(1) Drive: Britain’s first and still the only female prime minister woke up not late
than 6 in the morning and spent more than 18 hours at work. “How is it possible?”
people loved to ask Margaret. “My life is my job. Some people work to live, but
I live to work,” always answered Margaret Thatcher with a smile (BBC News,
2013).
(2) Desire to lead: "I fight on, I fight to win." 21 November 1990, after failing to
win enough votes to avoid a second round in the Tory leadership contest. She
resigned the next day. Even when towards the end of her career, she still fought
to lead with a high spirit, the same with her early politics days at Oxford (BBC
News, 2013).
(3) Honesty and integrity: Standing at the center of her leadership and her legacy
is the belief that the integrity of leadership is inevitably tied to the character of
the leader and to the power of the leader’s ideas (Mohler, 2005).
(4) Self-confidence: She is completely without self-doubt and without
uncertainty about the essential rightness of her party. She speaks out of her
experience as a woman and as a mother. As a result, many who disagree with her
political viewpoint can agree with a great deal that she says (Barnett, 1970).
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(5) Intelligence: Observers recount how Mrs. Thatcher overcame her outsider
status through a mixture of hard graft - she was, in Mr. Clarke's words, a "highly
intelligent workaholic" - and political calculation, enabling her to outmaneuver
the Tory establishment and oust Mr. Heath after his election defeats in 1974
(BBC News, 2019).
(6) Job-relevant knowledge: In her early political career, she went in to the final
selection of the Parliamentary Candidate as the favorite with the backing of the
Chairman. The Central Office Deputy Area Agent, who attended all the
interviews, described her speaking ability and political knowledge as ‘far above
those of the other candidates’ (Aitken, 2013).
(7) Extraversion: The Iron Lady was no shrinking violet. Thatcher’s extroverted
personality helped her bull her way through British sexism to become the
country’s first female Prime Minister (Walsh, 2012).
(8) Proneness to Guilt: Margaret Thatcher’s feelings of guilt for the decisions she
took about men’s lives in the Falklands conflict can be seen in her own hand
written account of the were at it is but published for the first time (Malvern,
2023).
3.2. Behavioral Trait Theory
3.2.1. The University of Ohio Study
Initiating structure leadership style
Margaret Thatcher's leadership style was highly task-focused and focused on goal
attainment, which would align with the initiating structure category of leader behavior.
She was concerned with accomplishing the task rather than being concerned about
people and interpersonal relationships. Thatcher, however, was not renowned for
cultivating close bonds with her supporters or showing much concern for their welfare.
She was regarded as a strong, unyielding leader who was prepared to push through her
plans and agenda despite opposition. She arranged her Cabinet in such a way that all the
key economic posts were occupied by her close associates or the convicted politicians
which prove the government Mrs. Thatcher formed a divided one.
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According to Gupta (2015) she also used fear as an effective weapon in dealing with her
colleagues, even embarrassing and humiliating them in front of civil servants and others.
This intimidating attitude was seen as a 'chosen weapon', a carefully designed and
premeditated project to be used against those colleagues having distant relationships or
conflicting views with the Premier. This can be considered a weakness in her leadership
style because it might have made it more challenging for her to build strong relationships
with her followers and to gain their support for her policies.
3.2.2. The University of Iowa Study
An autocratic leader
Margaret Thatcher was known as the "Iron Lady" because she demonstrated many
characteristics of an autocratic leader. Margaret Thatcher tends to be very authoritative;
her administration was characterized by three major crises in the first five years, earning
her the title of Britain's most disliked woman.
The inflation crisis came first, followed by the danger of worldwide humiliation from
the South American military dictator, and finally by the last great fight of the class war
in 1984-1985. However, she had created her own opinions and principles, determined
to put them into action, and focused on her commitment till the end as a “conviction
politician, not a consensus politician” despite the fact that not many people agree with
her decisions. "I am extraordinarily patient, provided I get my own way in the end." she
stated (Lucy Hutchings, 2013). She has proven this through setting out “Thatcherism”
which promotes free markets while limiting government spending and tax reduction and
combining them with both domestic and international British nationalism.
In addition, Thatcher liked having authority and being in charge, and she didn't want to
lose initiative in parliament or lose influence in the country, so she methodically planned
her meetings. Thatcher took the Prime Minister position very seriously, and during
debates she generally displayed her distinctive offensive or even hostile push and
tenacity. Thatcher’s qualities and leadership style indicate that she was an autocratic
leader
However, depending upon the circumstance and environmental context, she has been
able to adapt other leadership styles to achieve her goals.
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3.2.3. The Blake and Mouton Managerial Grid model
Margaret Thatcher leadership style is considered to be placed in the managerial grid
(9,1) as “Authority – compliance”.
(9,1) grid is defined as high concern for the result - low concern for people, giving
the instruction for the tasks, result-driven, people are the tools, controlling-demandinghard driving - overpowering that similar to autocratic leadership style of Iowa Study.
This is due to her leadership style was characterised by an authoritarian approach, often
taking on most of the decision-making responsibilities. With little or no input from other
group members, she tended to dictate government policies and methods.
There are several benefits to this leadership style, including the ability to quickly and
efficiently make decisions without a laborious democratic process that may hold up
results. This was particularly effective in high-pressure environments, where hesitation
or procrastination could be damaging or even dangerous. However, the disadvantages
to her included disgruntlement among colleagues who cane to resent that they have no
decision-making input, as well as the limitations it can have on new idea generation.
By using the authority power, she was a revolutionary figure who transformed Britain's
stagnant economy, tamed the unions and re-established the country as a world power.
Together with US presidents Reagan and Bush, she helped bring about the end of the
Cold War.
However, she shied away from using words like “compassion” and “caring” in the
speech she went on to deliver because her image was built as a “decisive, strong-minded
person” and “someone who is clearly going to be very hard to beat”. As the feature of
Thatcherism, she mainly focused on economic and military development of Britain
rather than pay attention to the benefits of British citizens. For example, Margaret
Thatcher opposed the idea of a unified tax-benefit system giving tax credits to the poor,
cutting milk of schoolchildren to reduce social benefits in order to decrease taxes and
her empathy did not extend to members of the community as LGBTQ+ (Wakefield,
2022), and rarely take real action to support women (Murray, 2013).
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3.3. Contingency/Situational Theories
3.3.1. Fiedler’s Contingency Theory
We will apply Fiedler’s Model to analyze two situations in which Margaret Thatcher
succeeded with her leadership style in one and failed in another. Moreover, we would
use the framework to point out specifically why there were such outcomes in two
situations and what she could have done better.
The first step in using the model is to determine the leader’s natural leadership style. To
do this, Fiedler developed a scale called the Least Preferred Coworker (LPC). According
to the interviews with Afternoon Plus in 1981 and Woman To Woman in 1985, as well
as the movie "The Iron Lady" in 2011, her sharing about the members of her cabinet had
led us to believe that Margaret Thatcher was most likely to have a low LPC score and
thus she was a task-oriented leader.
Regarding situational favorableness, there are three distinct factors that need to be
addressed: Leader-Member Relations, Task Structure and Leader's Position Power
(Northouse, 2012). This would be used to analyze two situations:
➢ Situation 1: The Argentine invasion of the Falkland Islands.
This war created two major problems for Margaret Thatcher: (1) the need to respond to
criticism against her government for not failing to prevent the disaster; (2) devising and
implementing a strategy to tackle the crisis (Domenico Maria, 2018).
• Leader-Member Relations: Poor.
At that time, Britain was suffering from political and economic decline which made the
nation too weak. The British conservative government under the Prime Minister
Margaret Thatcher lost popularity within both the British public and the conservative
party (Hamza, 2013). In order to reduce expenditure, a major review of the United
Kingdom's defense policy was introduced to propose extensive cuts to the British Army,
Royal Air Force and Royal Navy. This proposal was eventually approved by Margaret
Thatcher, leading to the invasion of the Argentina army towards Falkland Island
(Dastych, 2016). That was probably the reason why followers and British people didn’t
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trust her and she had to face many criticisms. “She had to first convince a collapsing
cabinet to go to war with her.” (Waldman, 2015).
• Task structure: Low.
According to Fiedler, when the tasks are ambiguous, with no clear solution or correct
approach to complete the goal, it is considered a low task structure (UȚĂ, 2021). This
pattern applies in this circumstance since there was no clear path to England's triumph
and the strategy changed within seconds as the battle progressed, necessitating constant
adaptation.
• Position Power: Strong.
Mrs. Thatcher sought to confront the situation utilizing the means allowed her by her
position of power as head of government (Domenico Maria, 2018). Since she was the
Prime Minister of the UK, she had all the authority and jurisdiction to make decisions
regarding the Falkland War.
As a result, based on Fiedler’s Contingency Theory of Leadership, we can clearly see
that this situation falls in the 7th category, indicating an unfavorable situation. Fiedler
also claimed that if the leader is task-oriented, he/she could be the best fit to tackle highly
favorable and highly unfavorable situations. Therefore, Margaret Thatcher, as a taskoriented leader, would be an ideal candidate for this circumstance.
Reality also proved Fiedler’s theory to be correct; with the leadership style of Margaret
Thatcher, the main operation to retake the Falkland Islands was completed with victory
on June 14, after 74 days of fighting. The victory was a triumph for Margaret Thatcher.
In the following days, she received congratulations from around the world. Her
popularity rose to become one of the most popular British Prime Ministers, and the
Conservative Party won the following year’s general elections (Dastych, 2016).
➢ Situation 2: The Community Charge/ poll tax decision.
The Poll Tax faced opposition from all sides: by its own party, opposition, and
widespread
public
disapproval
throughout
the
UK
(StudySmarter,
2021).
Implementation of the tax throughout the United Kingdom in 1989 and 1990 caused a
20
number of problems for Prime Minister Margaret Thatcher and eventually led to her
downfall and resignation (Knight-Rini, 2023).
(1) The need to respond to the national anti-poll tax movement, riots and protests;
(2) The Conservative Party’s members and the Westminster Council did not agree with
her tax policy, and they have warned her about the consequences (Travis, 2016).
• Leader-Member Relations: Poor.
At the time Margaret Thatcher introduced the poll tax policy, a lot of people, including
Party members were furious and discontent with her, and at one point, her own
Parliament turned on her (Kelliher, 1990).
• Task structure: High.
After receiving criticism from both the public and the Conservative Party, Margaret
Thatcher should have listened and proceeded to abolish the poll tax or adjust it to be
relatively fair for poor people. The task was fairly easy to carry out, and there were
precedents for changing tax policies, so the procedure was highly structured.
• Position Power: Strong.
Since she was still the Prime Minister of the UK for the 11th year, she had all the
authority and jurisdiction to make decisions regarding the Poll Tax policy.
According to Fiedler’s Contingency Theory of Leadership, this situation falls in the 5th
category, indicating a moderate situation. This kind of situation requires a relationshiporiented leader, stated by Fiedler in his study. Therefore, Margaret Thatcher, as a taskoriented leader, would not be suitable for this circumstance.
However, Fiedler suggested that when a leadership style does not match the situation,
there are 2 solutions: changing the situation to match the leadership style or replacing
the leader.
Because Margaret Thatcher did not try to change the situation by following the advice
of her followers, she could not shift the Leader-Member Relations category from “Poor”
to “Good”. As a result, she was forced to resign by her own party (Brazier, 1991).
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3.3.2. Hersey-Blanchard Situational Leadership Theory
Although Mrs. Margaret Thatcher sometimes displayed other leadership styles
throughout her time as Prime Minister, she primarily exhibited the "Telling" style, which
is characterized by a high degree of directiveness and a low degree of supportive
conduct. We will examine the contexts in which she successfully adapted her leadership
style, as well as those in which she did not, and provide recommendations for how she
might have improved her performance.
➢ S1 - Telling
Margaret Thatcher would be best described as adopting a S1 leadership style during the
invasion of Argentina (also known as the Falkland War).
Since the military forces and the UK management system were not really for the war
and they were attacked quite suddenly, they were both unable and unwilling (R1
followers) to partake in the war.
However, as a decisive leader, she was implementing a high-directive, low-supportive
style known as directing. Ultimately demonstrating military action that forced Argentina
to surrender, Thatcher coined the name “The Iron Lady” after her plans were successful.
The directive leadership approach focuses on goal achievement, which is important in a
high-stress environment like this war.
➢ S3 - Participating
Thatcher showed a “Participating” leadership style in her early college political days.
It's possible that the power dynamic between men at her institution and her status as a
new and young female leader contributed to Thatcher's more supportive behavior.
In this situation, the members of the Oxford University Conservative Association were
looking down on her leadership skills, but they had good ability. Therefore, the
followers were able but unwilling (R3).
She did not let them sway her away from politics but learned to adapt her leadership
style to her environment, which was a male-dominated area (Beckett, 2017). She was
one of the first and most effective female presidents of the Oxford University
Conservative Association (Oxford University Conservative Association, 2023).
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➢ A lack of S2 - Selling and S4 - Delegating
We can only see highly supportive behaviors of Lady Thatcher in her early political
career when all of the male politicians looked down on her and tried to sway her away
from politics at the University of Oxford. Later on, it's impossible to find examples of
Thatcher showing any kind of encouragement or delegation to her subordinates; her
behaviors were always very directive.
Once the tide turned and Britain once again faced rising unemployment and an increase
in economic disparity leading to social discontent, her forcefulness and self-belief were
viewed as intolerable egotism (Smith-Spark, 2013). Her former followers rose up in
rebellion because her “Directive” style of leadership was no longer seen as appropriate
(Majumdar, 2013).
All of these are indicators of a directive (S1) leadership style, which is not suitable for
the circumstances when the followers are not unable and unwilling. Meryl Streep's
portrayal of Thatcher in the 2011 film The Iron Lady perfectly depicted that aspect of
Margaret Thatcher, which enabled her to succeed despite her apathy toward the suffering
of others. This is exemplified by a scene in which the late prime minister snatched a
paper from a Cabinet Minister, one of her most trusted aides, and proceeded to publicly
shame the minister.
It is clear that Margaret Thatcher should have implemented more leadership styles like
S2 and S4 to adapt herself to each situation. Her leadership style was suitable at first
because the UK was in crisis situations. But as the situation evolves and matures, the
leader has to change her style. She should have sought opinion or provided controlled
direction, or just limited herself to monitoring and reviewing the process after delegating
the decision-making. After all, she should have never been in a permanent crisis mode,
requiring a "do as I say" leadership all the time. That's why many of the prominent
followers in Thatcher's Cabinet had left. In the end, the Party decided to turn on her and
caused her to lose the Prime Minister position.
3.4 Transactional Theory of Leadership
Margaret tends to make decisions on her own. In order to complete the task at hand, she
needed to make judgments quickly. Margaret Thatcher entered politics with the specific
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goal: “To change from a dependent to a self-reliant society – from a give-it-to me, to a
do-it-yourself nation. A get-up-and-go, instead of a sit-back-and-wait-for-it Britain”.
She took office at a time when the economy was struggling and public services were
being shut down by the trade unions and governmental spending has gotten out of hand.
She was able to take on the unions, privatize industries, and put Britain back on its feet
thanks to her leadership style. The British government's hierarchical structure, which
showed that she had control over those under her but was still responsible to
parliamentarians, provided clear evidence of this. Aggressive transactional leaders focus
on rewards and penalties to influence others. When colleagues' ideas or plans didn't align
with hers, Margaret Thatcher admonished them by hand-writing notes and comments in
the margins of their proposals and policies. She even went so far as to say, "Please
translate into English," indicating that the paper was very poorly written.
The core concept of transactional leadership is the interaction between the leader and
the followers, in which the followers’ consent to obey the leader and face the
repercussions if they do not. Because they disagreed with her government's economic
strategy, one of Margaret Thatcher's ministers was removed from office.
Through the changes she brought, Britain was altered. Margaret Thatcher was the first
female prime minister in British history breaking the glass ceiling of a male dominated
profession. Unions and education were reformed, financial markets were liberalized,
property ownership rose, industries were privatized, and employment were produced.
The economy was in considerably better position when she left it than when she arrived.
4. Strengths and Weaknesses of Margaret Thatcher’s Leadership Styles
STRENGTHS
WEAKNESSES
- Great communication
- Passion
- Too stubborn
- Determination
- Lack of compassion
- Confidence
24
4.1. Strengths
Great Communication:
- The thing about Margaret Thatcher is she changed her own voice as part of her image
makeover to appear more authoritative and assertive, and to be taken more seriously as
a politician.
- In each of Margaret Thatcher’s speeches, Thatcher was told to be herself and focus on
the authenticity of what she was saying. When delivering her speeches, Margaret
Thatcher took a strong and assertive tone, delivering her message with confidence and
authority. The style held people's attention and it made her very easy to understand. she
even hired a vocal coach to help her lower her pitch.
Passion:
- Margaret Thatcher had such great passion and love for Britain that she would not let a
piece of it be taken away from them. In Falklands War, Under Thatcher's leadership, on
April 5, 1982, the British government sent a naval task force 8,000 miles into the South
Atlantic to take on the Argentine forces in advance of an amphibious assault on the
islands. The result is, the 74-day Falklands War became Prime Minister Thatcher's
"moment" that led to swift British victory.
- Margaret Thatcher had a passion for her country and for privatization and freedom.
Her believe was that nations can only achieve prosperity and greatness by setting
individuals free. She believed in free men’s intrinsic freedom to choose their own
destinies, as well as free nations’ ability to oppose and defeat all forms of tyranny and
injustice. This passion allowed her to fight for many key policies and gave her the
strength to take up fierce fights, which she ended up winning.
Determination:
- Margaret Thatcher once said: “You may have to fight a battle more than once to win
it.” Her determination was key to her leadership. Lady Thatcher was happy to fight for
what she believed was best for the country. She was not afraid to take on long and
difficult fights with the Unions and with Europe. Her determination to stand up to
tyranny lead to the collapse of Soviet Unions.
25
Confidence
- Margaret Thatcher exuded confidence when she was representing her country on any
stage. This demanded respect and gave her a voice people listened to. Her confidence
was a key quality that allowed her to not only to bring about change in the United
Kingdom but in many respects influence policies across the world.
4.2. Weaknesses
Lack of compassion
- Thatcher was brave and resolute, but she was not magnanimous. She won famous
victories, but showed no generosity to the defeated. As a result, she failed to create
harmony out of discord.
- Her empathy did not extend to people in the communities devastated by her abrupt
restructuring of Britain’s industry, nor to the miners, gays and others who did not qualify
as ‘one of us’.
- In 1970, as a position of Minister of Education, Margaret Thatcher enacted policy to
cut the milk supply to children over the age of seven in public schools in order to save
£9million a year.
Too stubborn
- She had a love of political combat, a zealotry for the causes she believed in, a
reluctance to listen to advice, a conviction that she was always right and never wrong,
and a scorn for consensus that set her apart from almost all her predecessors.
5. Lessons and recommendations
Strengths can turn to weakness:
- Receiving the nickname “The Iron Lady” from a young journalist, Thatcher was fixed
upon her beliefs. This turned out to be both a strength and a weakness, and it was this
that led her political career to come to an end. Being inflexible can lead to tragedy since
it prevents you from hearing other people's useful opinions.
- Learning agility is one of the main problems leaders face as they become older. When
a leader is just starting out in their profession, they frequently absorb up information
26
through listening and asking questions. Nevertheless, as people get more certain of their
vision, the way to accomplishing it becomes more obvious; they forget that the path
must be continually refreshed. While we must constantly remain committed to realizing
our goal, we must also adapt our strategy to reflect changes in the external environment.
- Many leaders successfully employ their strengths and believe that the same qualities
can be applied in all situations. Our own strengths might become our weaknesses in a
variety of circumstances. Thatcher teaches us that learning agility must exist with
conviction and commitment. We start to sink into mediocrity and inefficiency when we
start to think that we have known the path forward.
The “convicted” leader
- There is no denying that Thatcher was a powerful leader who was clear about her
values, despite the numerous political obstacles she faced and the decisions she made
(such as privatization, education reform, and the Falklands War).
- She once said, “I am not a consensus politician. I’m a conviction politician.” When
asked why she dislike consensus, she replied: “If you look at the great religions – and
the Judeo-Christian religion is really at the heart – would you have those great guidelines
if Jesus had said, ‘Brothers, I believe in consensus?’ Of course not. You’d have nothing
of value.”
- Doing the right thing is one of the toughest things for leaders to accomplish. The
popular or simple approach is quicker to take. It might be difficult and unnerving to act
on something you firmly believe in.
- In this day and age, we need more “convicted” leader in our society. We have a lot of
politically correct leaders, but we also need people who will hold their ground and defy
expectations.
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