Leadership Skills Required For A Large Multi-Department Organisation - Essay Example

Critical evaluation of contemporary leadership skills required for a large multi-department organisation 1.0. Introduction The discussion in this paper revolves around contemporary leadership in an era when business environment is characterised by swift, theatrical, and tumultuous changes. Changes in organisations have really turned into an intrinsic and central element of organisational life placing too many demands on leaders for competence and possession of the right skills and expertise for competitiveness. This essay will discuss emerging trends that are impacting organisational life and then link them to the leadership’s demands of multi-departmental organisations. Since there are numerous emerging trends, those discussed in this paper include globalisation, networks, and diversity. While functioning within the changing environments, employees and leaders are faced with waves of changes in form of trends and tensions that present opportunities and threats. To analyse the leadership response to trends and tensions, the paper looks at transformational and transactional leadership, and the leadership qualities needed to overcome changes trends and tensions. The skills to be analysed will emphasise on building effective LMX, and becoming a transformational leader. The conclusion provides a logical summary of the contemporary leadership skills required for a transformational leader in a large multi-department organisation. 2.0. Demands placed on leaders by contemporary organisations 2.1. Environmental context and change According to Halinen and Tornroos (2005, p.1286), the current business world has changed significantly compared to a decade or so ago. Furthermore, the aspect of new economy and globalisation introduces continuous change, and this might indicate that organisations need to regularly monitor their strategies to incorporate change. Heller [Hel03] highlights that the new economy requires restructuring and reorganisation of former economy of primary extraction of resource and transformation of the industry. Leading within the environment context characterised by globalisation and new economy, Brooks, et al [Bro12] reveals that leaders are expected to be swift in identifying resulting global and local tensions to avoid accepting a traditional isolationist status quo expecting success. Additionally, leaders must learn to balance their responsibilities within a global society with national and global interests. In this case, multi-department leaders are expected to simultaneously make long-term investments while continuously achieving short-term results. According to Phelps & Wood [Phe06], global interests come with integration of global economic which involves orchestration of business processes from above by an emergent transnational class which neglects autonomous involvements by sub national opinionated coalitions reconciling between local and global welfare. In this case, the leader is expected to have core values like open-minded, courage, and integrity so as to keep up with fast growing business environment and reduce global tensions[Bro12]. Additionally, leaders in multi-departmental organisations are expected to be accountable, curious and learning, mature, and agility thinkers (Mendenhall, et al. 2013, p.37). 2.2. Structural context Daft [Daf10] highlights that within the current globalised business environment, contemporary organisations use numerous structures with the two most common being matrix and boundaryless structures. Matrix structures function by identifying specialists from numerous departments and assigning them work on one or more projects. For each team, a project manager is assigned to coordinate resources or functions allocations as needed to attain the project to completion in line with its goal (Mills 2007, p.455). Further, matrix structures’ different functions on projects include sales, accounting, engineering, marketing, human resources, and operations. Boundaryless organisations according to Summers, et al [Sum13] do not operate under horizontal or vertical limits and thereby operate under the unstructured design. In such structures, the chain of command is not considered neither is organisational hierarchy or departmentalism (Schermerhorn 2011). Additionally, instead of conforming into departments, boundaryless departments use modular, networked, or virtual organisational structures. Virtual structures are used by managers to allow outsourcing or in-sourcing thereby adapting to the new global economy arising from globalisation. As a result, cost effectiveness is promoted as qualified workers are available at low costs thereby placing the need for fewer employees. Some outsourced services include subcontractors and freelancers. 2.3. Transactional versus transformational leadership While the transactional leadership is founded on exchanges and reinforcement, transformational leadership stirs and stimulates followers (Aarons 2006). In transactional relationships, rewards and punishment govern people’s work especially since there is a present chain of command. According to Alice, et al [Ali03], transactional leadership assumes that the major role of the subordinate is to obey the manager’s instructions. The transactional leader only creates clear structures since managers are aware of what the followers require, and rewards linked to each order followed. Further, there is constant mentioning of punishments such that everyone understands what they are to do and the formal structures of discipline (Timothy & Ronald 2004). Additionally, transactional leadership operates from a responsive approach and uses responsiveness orientation in dealing with present issues. Each follower clearly understands the goals set for them and the promising rewards with their desired goals, while the leadership depend on the ability of the leader to emphasise subordinates for their triumphant achievement of the bargain (Aarons 2006). According to Pieterse, et al [Pie09], transformational leadership is an improved transactional leadership since the leader seeks to transform the organisation as the followers are being transformed. The transformational leader is always charismatic and working with such leaders can be a magnificent and inspirational experience since the leader puts passion and energy in all, and wants followers to succeed. Kuhnert & Lewis [Kuh87] conquers that followers of transformational leaders are not just compliant since the beliefs, needs and values of followers are shifted by charisma in the leader. Transformational leaders are mostly logical and begin with vision development which they use to excite and convert potential followers. The vision is then subjected to constant selling through commitment and energy since people buy to it gradually and not instantly (Aarons 2006). According to MacKenzie, et al [Mac01], constant selling of vision is crucial since the transformational leader is always reinventing based on the situation and the fact that they are flexible and adaptable. Further, reinvention of the leader makes them innovative and they pursue engendering follower innovation behaviour. 3.0. Skills needed to address contemporary issues in large multi-departmental organisation 3.1. Skills needed to build an effective LMX or Leadership Exchange theory LMX theory operates under the concept that within teams, relationships develop between managers and team members and as a manager each member should be treated the same way[Lun10]. Additionally, LMX theory explores the manner in which managers and leaders establish relationships with members of the team and how such linkages could result to success or failure of the people. Lussier & Achua [Lus121], since the relationship between the leader and each subordinate is independent, leaders with poor interpersonal skills will have poor relations with some team subordinates while having open and trusting relations with others. In order to become an effective LMX leader, it is crucial to understand the three stages of relationship development between managers and subordinates which involve role taking, role making, and routinisation (Lunenburg 2010, p.2). A good LMX leader must be in a position to best represent the team. Leaders must understand the criticality of relationships formation and demonstrate strong ability to assess the subordinates’ skills and abilities and place them in the right group. When people with the similar skills are placed in the same group, it is easy for the leader to work closely with each and identify whether or not they need support to be effective with their current level skills (Griffin & Moorehead 2010, p.333). The LMX leader needs communication skills given that they associate with each subordinate and high quality exchanges should be natured in order to build trust and loyalty. Additionally, since the leader is not expected to concentrate on differences, good communication skills are essential in building trust with both out-group and in-group members and facilitate uniformity (Lunenburg 2010). The major strengths of LMX theory is that it focuses on the concept of dyadic relationship for positive organisational outcomes. Additionally, the theory emphasises the importance of communication in leadership and the significance of having both out groups and in-groups. However, LMX theory lacks basic values of fairness, fails to fully-establish idea and theory, and lacks metrics to measure member-leader exchange. This is worse especially where the leader has to identify the skills of numerous members and classify them either as in-group or out-group since the leader may fail to achieve the right skills for the efficiency of the multi-department organisation. Further, the development of numerous members could translate into difficulty training and developing the needs of different members in the team. According to Griffin & Moorehead [Gri10], LMX could result to unintended consequences for inadvertently supporting the establishment of privileged workplace groups at the expense of non privileged groups, hence promoting discrimination and unfairness. In addition, the members in either group may have a hard time trying to change their opinion over time given that the choices of the leader are final for proper development of each team (Lunenburg 2010). 3.2. Transformational leadership According to Lievens, et al [Lie97], transformational leadership involves inspiring positive changes to the followers such that they can move to higher motivation and morale levels. The outcome of transformational leadership is an environment with shared responsibilities, encourage support for organisational interests over personal interests, influence business impact and performance, and promotion of team trust and respect. The main skills needed to become a transformational leader are rational recreation, charisma, character reflection, and inspirational (Lievens, et al 1997, p.417). Charismatic skills involve being a role model and always ensuring that followers have faith and pride in their leader, and lead in pursuing shared goals. Inspirational skills are essential for followers’ empowerment such that they can face challenging missions and achieve extraordinary results for their goals. Since transformational leaders desire to inspire positive change to followers, individualised consideration or character reflection skills mean supporting and encouraging others through constant and open communication such that there is free sharing of ideas amongst followers and that the leader directly identifies outstanding contributions by each follower (Daft 2010, p.434). Intellectual simulation or rational recreation revolves around a leader being in a position to defy status quo by encouraging followers’ creativity through exploration of fresh ways of acting and new learning opportunities (Kepner 2013). The main strength about transformational leadership is that it focuses on transformation and positively changing individuals (Northouse 2012). However, some barriers to achieving transformational leadership skills include too much willingness by the leader to get involved into each followers’ needs and the department size they are in charge. For very large departments, the leader will not manage to meet the needs of each member or may end up overworking self to satisfy such needs. Additionally, the extent of follower’s willingness to transform the manner in which they get things done is a barrier since lack of willingness to transform reflects transformational leader’s failure (Northouse 2012). Unintended transformational leadership consequences include the fact that charismatic people have had instances of overconfidence and ended up losing track of organisational goals to pursue followers’ development. In a multi-department organisation, all departments have shared organisational goals and failed contribution by one group would negatively impact organisational performance. 4.0. Conclusion The discussion in the paper confirms that multi-department organisations face numerous challenges that present tension and challenges to leaders and employees. As a result, leaders strive to match up the tensions and challenges by acquiring the best leadership skills, organisational structures and leadership styles. In order to acquire the best leadership skills, managers are expected to determine the situation presented to the organisation and their market. Different situations call for different leadership styles but transformational leadership that borrows from transactional leadership should be used to assist followers to accept transformation. Additionally, leader-member exchange theory offers a strong foundation for leaders to identify followers’ abilities and plan for their development and training to improve their contribution to organisational goals. For the transformational leader, the essential skills needed to sustain high productivity and competitiveness includes charisma, inspirational, intellectual simulation, and individualized consideration. Additionally, leaders must not just possess great skills but must also understand and avoid any unintended consequences that may arise from their leadership style or skills for the success of multi-departmental organisations. 5.0. Reference List Aarons, G. A. (2006) Transformational and Transactional Leadership: Association With Attitudes Toward Evidence-Based Practice. Psychiatric Services, 57(8), pp. 1162-1169. Alice, E., Mary, J.-S. C. & Marloes, V. E. L. (2003) Transformational, transactional, and laissez-faire leadership styles: A meta-analysis comparing women and men, Psychological Bulletin, 29(4), pp. 569-591. Brooks, H., Barrows, D., Chen, H. & Kilanchenko (2012) The Global Economy, New York, The New York Times. Daft, R. 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