Organizational Leadership Changes Due to Globalization - Example

Discussion on the Impact of Globalization on Leadership Insert Name Insert Institution Discussion on the Impact of Globalization on Leadership Introduction This paper discusses the influence of globalization on organizational leadership and by giving an example of Sir Richard Branson. Presently, the term leadership is admirable among many but its description is quite extensive. An extensive type of description is that leadership is just the individual influential capabilities and the individual susceptibility to external parties influence. It can be described it two status; one, the hazardous view of leadership where the leaders use the opportunity to practice their power and authority to directly influence the activities of their subjects. This is without listening to the ideas from the other parties but oneself. Two, considering collective practice, much can be achieved effectively. However, it is important to consider effective leadership as linked to particular mission, strategy, inspiration, direction and transformation while effective management is linked to conducting transactions, making plans, guiding the activities (section 4, n.d). Most employees consider themselves as working in organizations with appropriate and effective leaders who propel the correct characters. Leaders have a responsibility of developing an organizational culture of involvement by affecting all factors directly or indirectly. The indirectness is through the provision of required resources to employees for the achievement of their various duties. Directly through having value on the employees and creating avenues for career advancement (Right Management, 2009). Leadership style is the way a leader co-ordinates a particular social group, with boundaries, and that regularly work together to attain similar objectives and goals (Robbins and Barnwell, 1994, pg. 4 in White, 2012). A leader should actually work as shown in the picture below. Picture in White, 2012 Organizational Leadership changes due to globalization The target of global effective leadership is the ability to enable others lives quality lives and access resources. Global leadership problems do not depend on the antagonistic perception between globalization and diversity but is because of outside parties influence on resources, lifestyles and facilities. The fact that many people inhabit the world, gives it the characteristic of diversity which has existed for long. The current fields of business and economics show the human population that, the world is experiencing a new era known as globalization. Therefore, appropriate and effective leadership must be naturally respectful and broad on the ideas of globalization and diversity. In that way, the leaders will consider the ideas as ways of solving problems in leadership (Tarapoverela). Organizations around the world vary in many ways from staff, administration, culture, and structures. This also applies to leadership that needs distinctive experience; know how, skills and gives specific challenges. For a long time, organizational leaders have created unique leadership practices, duties and identities that go with the particular organization and their distinctive ways of leading. However, globalization is creating a lot of pressure on these traditional ways of leadership. As many organizations go global, the respective leaders need to coordinate and regulate high complexities and dynamisms. They are required to perform carry out new tasks that differ from their previous ones. New organizational designs must be created for improved coordination and regulation across all organizations. The organizations have to come up with new quality service standardization ways of the diversity, while maintaining the consumers. In addition, they need to create new ways of organization, leadership, and management. All these changes affect leadership as in the past; leaders were only needed to be professional. Presently, they are required to show business and management skills. Therefore, globalization is a potential threat to the leaders’ professionalism through transformation. Actually, globalization is forcing leaders to adapt to new demand resulting to situations described by scientists as role ambiguity and role conflict. Most leaders have been operating in chronic ambiguity but globalization causes an exacerbation on this ambiguity. Thus leading to a negative type of ambiguity that develops change resistance among many organizational leaders. On the other hand, globalization can also result in positive effect of creating new avenues for the entire organization. Globalization has forced organizations to transform their leadership roles and develop strategies that will ensure they remain successful and effective (University of Oxford, 2011). Currently, there is excitement and transformation in the general global business. At the same time, the situation is challenging because of the existing multicultural, complexities and changes. The way in which people operate their work has changed drastically. The virtual way of conducting activities is on the rise where one on one interaction is minimized as people i.e. leaders and subjects, operate from different location but still experience effective results. Regardless of the main location of a particular organization, they still operate on global platforms incorporating international staff and serving global consumers. Furthermore, organizations have to reorganize themselves in order to counter the challenges of competition, failure and overtaking in the global environment. The challenges affect leadership and management in the organizations. Therefore, leaders are faced with multicultural and change management responsibilities imperatively. With these responsibilities in mind, leaders have the ideas and tools to effectively manage cultural diversity, counter changes in organizational culture and lead people towards the attainment of particular (Carnegie Bosch, 2012). Globalization challenges in leadership Globalization has led to various challenges and changes within the perspective of leadership around the world. Some of the challenges on leaders include (Central American Leadership Initiative, 2006): They are required to: Bring different people together and simultaneously maintain cultural identity, develop new business and leaders’ generation that know the world’s diversity and global competition. Create appropriate avenues, maintain democracy and also utilize significant resources. Carry out their activities in conditions of transforming rule of laws and at the same time deal with poverty. Create equal opportunities in education, law enforcement and observation of rights and working activities in general. Understand the negative and positive factors within their leadership location and globally, create economic success and be a listener of the people. Work towards reduction or elimination of corruption and advocate for high population literacy levels. Counter situations of international issues and events. Ensure organizational values and cultures are not lost in the current event of globalized technology, information, and competition. Bring back the values of the society in the globalized and materialistic world. Work efficiently with people who are illiterate, despaired, and corrupt. Share local vision with the globe; involve the poor with the aim of creating economical and social enhancement opportunities that are presented by globalization. Sir Richard Branson as a global leader Sir Richard Branson is one of the most successful, enduring and intriguing entrepreneur in the world. He is the founder of Virgin Group; the background established by Branson is one to reckon with in terms of leadership and resource use and distribution. Extremism is seen in Branson‘s entrepreneurship, the management and leadership style brought forth by this leader is interesting as well as exciting. The style he brings to business is not like that used by many or acquired from books (Walenius, 2011). 2 Leadership is a crucial and interesting thing for management of the Virgin Group. Dynamics in leadership is seen in the chair of Sir Richard, being vocal and flamboyant type of leader. Inspiration is a mission brought by the leader as he urges his workers to work at their best abilities therefore bringing the best out of them and profits to the group. The belief pushed through by Branson is that contribution determines rewards this means the better the contribution rewards become better also. The idea of bringing the best from employees is from the lowly ranked to top executives this promotes the ultimate achievement of the company’s goals and objectives as everybody feels as a part of the company. The managerial staff is given the philosophy and urged to share it with their juniors. When this is passed through coerciveness at work can be achieved and people are on the same page. The type of leadership Branson brings is that of freedom for highly ranked individuals, this allows him to just give them direction then they can carry out their work at own control. Micromanagement is not required in such a situation as freedom at work allows excellence of such people as they work with passion. Leadership, management style and vision that Branson brings to the business world have brought him to the limelight and centre of discussion amongst businessmen worldwide (up success free style guides, 2009). Complexity is seen in the organizational culture of the Virgin Group. It serves as core to over a hundred companies that are run individually and function in industries that are unrelated. The philosophy of inspiring workers and innovation to bring out the best is used by the managerial staff of these companies. Contribution by all employees is achieved through this method and companies can run smoothly as they do not feel as if they are being ordered therefore boosting their morale. Efficiency and innovation can attain achievement from employees who are motivated and for Virgin group that is the main policy, products are created are employee contribution and innovations. Competition amongst employees is viewed to be the idea promoted by the Virgin Group; this management style is to increase productivity and quality service to its clients. Contribution of fresh and creative business model is the driving force among the employees of the virgin group, as they wish to see the firm succeed. Distinction is present in leadership, management is there in Virgin Group as top managers, and executive staff avail transformational leadership worldwide (up success free style guides, 2009). The personality and leadership The leader is the figurehead of the organization; Branson serves as a spokes person and entertains clients who make him the figured of the Virgin Group and the brand. The launch of virgin cola brought controversies amongst industry players, Branson walked to Times Square with a tank showing his boldness and no fear of intimidation. As clearly seen, Branson is an exception as it not been observed in the recent past. Such stunts make him to be seen as courageous and the brand will stick to the minds of the people through the unfamiliar marketing strategy he used. Effective leader has several characteristics and personal traits. Passion is the most crucial character; this is the driving force for any goal for achievement. Many people in the world regard Branson as a passionate leader as they see the way he addresses employees as well as clients and how he carries out himself. Giving birth to companies and holding of hand has been talked about in the website of the Virgin Group, the meaning of this is the support nature brought about by Virgin Group contrary to other companies (Walenius, 2011). Courage is the second trait that should be posses by a leader. Courage involves taking of risks and initiatives that have not undergone trial by anybody else. The courage observed from Branson is the redemption of virgin Atlantic financial records through sale of virgin records, is one of my admiration. Bank switching was carried because of Virginia records poor advice and support. The risk of all time undertaken by Branson is launching Virgin Galactic a space tourism a field thought to be profitless. The driving force to such courageous risk is looking for profit. Cooperation between Branson and scaled composites in development of spacecraft was a risk that could have led to losses. The idea Branson has is the distribution of risk, as he does not carry out risky business all by himself. Before embarking on large risk taking Branson begins with small and manageable ones. The connection between the companies Branson owns is loose and is perceived to be a cushion in risk management as risk is minimized on each firm (Walenius, 2011). Thirdly, knowledge of competition in the prevalent environment is important for a leader. Sir Richard is fully aware of his firm and operations. Spoke and hub approach should be eliminated in airlines as observed by Branson according to an interview with the times paper. The concept brought by many airlines is that of focus on direct flights to busy airports and population will reflect on the brand. Creativity is a factor that should be put into consideration by any firm, Branson idea of using touch screen in ordering food and plane comfort ability can be seen as creativity. Cost reduction in such areas is what many firms are still working on but Branson took the initiative long time ago putting him ahead in the game. Having insight on a situation is a cofactor in speeding decision-making and Branson posse’s insight to various situations through his space tourism venture (Walenius, 2011). Intentions and characteristics Sir Richard Branson determination to carry out things the right way is the motivation he has. The philosophy he brings to business is to go into any business with an aim of making money in an achievable manner. Environmental research is one of Branson’s to the environment. Goal, according to a CBS interview he says he is engaged to the environment. Although he his driven by urges to make money, Branson system is capitalistic in nature. He notes that he did not want to be a businessperson or entrepreneur but sets high ant unachievable goals to many and tries to achieve them. Branson is charismatic and adapts to situations as seen in the battle with British airways (Walenius, 2011). Style of Leadership According to Sir Richard Branson liking people is one the characteristics a leader should have. He defines management style and good management as a derivative of humility and friendliness. Image is everything in business and Branson has always protected and promoted the image of Virgin group through avoiding bad reputation. The leadership style brought forward by Branson is based on three simple rule; having fun at work, smiling which makes everything possible and easier and lastly belief on employees, your own ideas and colleagues. Branson was taught to be independent during his early age, an example is when he was thrown out of the car and told to find his own way home when he was only six. Secondly, in a bold move he tries to ride a bike through a distance of 300 miles, through such experiences and events Branson learns the virtue of endurance and leadership qualities. The success of Richard is through trial and error as he founded his business at 16 years of age and has been learning management skills throughout. Time management is an effort that Sir Richard likes to encourage. On a normal day he divides it into three, trouble shooting, new projects and promotion of current businesses. This provides a stepping-stone towards achievement of his dreams. According to many papers, Branson is the best in PR preparation and handling issues on personal relations. He usually leads all the PR activities of the company (Walenius, 2011). Work delegation is a skill Richard has imposed to the virgin group. Setting up business plan and drawing of big picture is what Branson spent most of time helping the employees to achieve the same. The ultimate event that takes place after he has worked out the future plan and laid down the goals and objectives is to step back and delegate the duties to the managerial staff giving them total freedom the fore achieving the best. He is very vocal on the policy that the company has to continue even with his absence. The thorough nature Branson has during hiring of employees gives him the right people for the job. Hiring is not complete without setting up strategies that will retain the employees and get the best out them always. Branson’s management style is unique as when people fail at a task he switches them to another where they can give the best. He rarely fires people as he considers it a less option compared to taking a person to where he/she can perform to full capabilities. Virgin Group is a vast company therefore the need for a central management group established by Branson known as Virgin management limited. The role of the group is to aid in management of the many companies and ease managerial staff of the companies numerous tasks (Walenius, 2011). Sir Richard participates in all what he does and a high degree of consideration is seen in him. He is also involved in setting up of new firms as well as giving support and encouragement to his employees. An interpersonal relation is the main aim of Branson as he falls under the category of consultative and participative leaders. Conclusion The variety of literature shows that a one for all leadership approach is not appropriate for effective results. Instead, leadership methods must be created considering political, economical and geographical factors. Leaders need to work towards properly understanding the variations in culture and leadership before venturing into the globalized world if they are success oriented both locally and globally (Martin, 2007). Leaders should also be capable of leading in situations such as; when roles are not clear i.e. them & their subjects; when hierarchy in authority in unclear; when culture acts as a shaping factor and when the leadership process involves the active participation of the subjects. The charismatic nature of Sir Richard Branson allows many people to follow and listen to him. The derivative of these traits is that Branson is a transformative and charismatic leader in the current business world. References CarnegieBosch. (2012, November 12-15). Leadership and change management in a multicultural context. Retrieved http://cbi.tepper.cmu.edu/brochures/CBI_Multicultural.pdf Central America Leadership Initiative. (2006, February 7-12). Leadership. Retrieved http://www.centralamericaleadership.net/files/reports/3.pdf Martin, A. (2007). The changing nature of leadership. Retrieved from http://www.ccl.org/leadership/pdf/research/natureleadership.pdf Right management. (2009). Organizational effectiveness: Discovering how to make it happen. Retrieved from http://www.right.com/thought-leadership/research/organizational- effectiveness-discovering-how-to-make-it-happen.pdf Section 4 (n.d): Leadership and Leading. Retrieved from http://labspace.open.ac.uk/file.php/5623/E838_1_Section4.pdf Taraporevala, P. Diversity: Hampering World Leadership in an Era of Globalization. Retrieved from http://www.oxfordleadershipprize.org/submission/2010/2010%20OLP-Finalist- Persis%20Taraporevala.pdf University of Oxford. (2011). The Challenges of Leadership in globalizing Professional Service Firms. Novac Druce Centre Insights. No.5. UPX success free style guides. (2009).Management and leadership of Richard Branson at Virgin Group ltd. Retrieved from http://www.upxsuccess.com/leadership_richard_branson.html Walenius, M. (2011, July 15). The leadership style of Sir Richard Branson. Retrieved from http://michael.walenius.com/?p=141 White, L. (2012). Organizational leadership and Performance. University of New England. Read More