Organisational Leadership and Performance - Assignment Example

Organisational Leadership and Performance Student’s Name Course Tutor’s Name Date: (Word Count: 3,060) Option B. Discuss the way leadership has changed within the context of a globalised environment, over time. With reference to the readings of the unit, profile the leadership and communication styles of a good leader you admire. Introduction The globalised environment has not only opened up business opportunities for companies, but has also challenged leaders to adopt more diverse leadership approaches in response to the increasing cultural diversity of the global workforce. This paper will discuss how leadership has changed in the global business environment and will specifically use Virgin Atlantic’s Chief Executive Officer – Sir Richard Branson as an exemplar of a leader worth emulating. The paper commences with a general introduction of leadership in the global context, and will narrow down to the changes that leaders in the globalised business environment have had to make in order to competitively position the organisations they lead. In summary, the writer argues that strategic flexibility is an aspect that leaders need to adopt not only in how they relate with the workforce they lead, but also in how they communicate to their juniors. The writer notes that while not all leaders appreciate the need to change in order to conform to the globalised environment, most of those who resist change register poor performance outcomes than those who are flexible enough to adopt changes. Leadership in the globalised environment Even before global integration took place to become what is now commonly referred to as globalisation, scholars and analysts generally agreed that leaders are defined by the functions and responsibilities that they have. Dalglish and Miller (2010) for example state that the tasks and functions of a leader include “creating a vision, direction or goals...; communicating with followers...; motivating and empowering...; affirming/reaffirming values...; aligning people (i.e. the management of meaning and achieving workable unity)...; serving as a symbol...; the management of trust...; and the management of self” (p. 6). In other words, Dalglish and Miller (2010) are referring to the fact that effective leaders have multiple roles to play. For example, leaders focus the attention of the workforce to a compelling vision that they have in regards to where the organisation should be in the future. Additionally, they communicate effectively to their followers and by so doing, they are able to make and pass meaning. Moreover, they lead by integrity in addition to being reliable, and through such an approach to leadership they are able to inspire trust in their followers. Finally, and as indicated by Dalglish and Miller (2010, p. 6), they use positive self-regard and self-awareness to manage themselves, and through self-management, they are able to present themselves to their followers and the external stakeholders as a symbol, representing the organisation. The qualities and roles of effective leaders aside, it has been noted that the twenty-first century has brought changes that have challenged the traditional notion of a good or effective leadership (Dalglish & Miller, 2010, p. 10). For instance, the global environment has presented the need for leaders to be more flexible in their decision-making especially when handling employees from different cultural backgrounds. A case in point is that what may inspire employees in the US may be completely uninspiring for employee in other countries. As such, an effective leader in a global context needs to understand the strengths and preferences of his followers depending on their different cultural backgrounds. As will be illustrated hereunder, the Virgin Group has managed to succeed in a global context, something that is often attributed to the good leadership skills of Sir Richard Branson. In Branson’s own words (and he never attended any business school hence his definitions may not specifically be supported in theory), “globalisation is the process by which geographic constraints on economic, social and cultural arrangements recede, thus increasing our [sic] global interdependence” (Branson, 2007, p. 39). The operative word in Branson’s definition of globalisation is the interdependence that economies, societies and cultures have in the contemporary business environment. As such, it can be argued that a good leader should remain aware that business decisions made in one part of the world may affect (and draw reactions) in another part of the world. As such, the leader should adopt a leadership style that considers the common values, interests and circumstances of his global followers. Richard Branson – the exemplar global leader Richard Branson is the leader and founder of the Virgin Group. Branson is well known for “his business exploits, unique personal style and quest for high-risk adventure” (Mills et al., 2006, p. 485). Branson has led the Virgin Group since 1973, during which time the group has diversified to more than “200 privately held companies” (Mills et al., 2006, p. 485). By 2006, the Virgin Group was making more than $5 billion worth of sales annually and was employing 24,000 people in its United Kingdom and 26 international business locations (Hobbs, 2007). Among the most cited reasons for Virgin Group’s success is Branson’s leadership style, which has been described variably as charismatic, transformational, or a mixture of both (Hayes, 2006). Understanding Branson, is to say the least, an impossible task especially if one’s sources are secondary materials such as books, magazines and Internet sources; however, from the same sources, one can clearly tell that Branson’s leadership style has clearly led his businesses to success, even though there have been challenges that he acknowledges have threatened the business during its years of existence. As Daft (2002) notes, leaders need to influence their followers positively towards attaining their organisational objectives, and this is something that Branson has clearly done. A look at the Virgin Group’s success and Branson’s influence in the same as narrated by Hayes (2006) reveals several trends in his leadership style. The trends include: ability to overcome challenges and setbacks; Branson’s self-belief, determination to succeed and his ability to influence his followers to share in the same; Branson’s recognition and appreciation of his own strengths and weaknesses, and his ability to hire a team that compliments his strengths while filling up for his weak points; his sense of responsibility, and his principles of fairness and equity in handling employees; and his loyalty to all stakeholders (internal and external) of the Virgin Group. Among the most admirable traits in Branson is his flexibility and ability to act out of his character especially if his actions are meant to guarantee the success of the Virgin Group. Although defined as a shy person, Hayes (2006) notes that Branson is not afraid to act out of character if his actions can guarantee the success of his business. For example, he has at some time in the past been involved in lobbying governments, something that he admittedly says he would never do were it not for his business’s sake (Hayes, 2006). When asked to comment about his successes at the helm of the Virgin Group, Branson is cited to have responded that the success is “based on developing good ideas through excellent management principles” (Hayes, 2006, p. 5). A firm believer in people and the potential they hold, Branson has been portrayed as a leader who has the ability to influence people and create purpose in them. Among his core beliefs that may be seen to contribute to his leadership approach include “helping people achieve things they did not know they were capable of as well as being a catalyst for the success of others” (Hayes, 2006, p. 7). Among some of the other admirable leadership traits that Branson has taken and that seem to inspire similar traits in his followers include his flexibility. As noted by Hayes (2006), Branson “becomes who he needs to be depending on the situation” (p. 8). Such kind of flexibility could be interpreted to mean that business requirements are the best pointers that Branson uses to decide how he should appear and lead his followers who not only include Virgin Group’s staff, but also the shareholders, the customers, and the general public who closely watch the business operations of the Group. Another admirable leadership trait in Branson is his ability to select a management team that is just as flexible as he is. According to Hayes (2006), Branson selects the management team based on the needs and context of the business, and they (members of the management team) too know that their services would be terminated if found to be no longer adding value to the business. The flexibility of both the leader and the management team working under him is especially relevant to the contingency leadership theories, since they argue that effective leadership styles depend not only on the leader, but the situation and the followers too (Mills et al., 2006). In other words, the leader and his followers need to be flexible in order to respond appropriately to the different situations as and when they emerge. Another argument closely related to the top management selection criteria is advanced by Zaccaro (2001), who notes that top management composition can impact the performance and strategic direction of an organisation profoundly. Specifically, the structure of the team, the processes they are charged with, and incentives they are provided with have the potential to encourage the team’s autonomy and trust in the business. Branson seems to have realised this and is known to give the senior staff at Virgin Group a shareholding stake in the business’s success. Branson further strikes the writer as a leader who recognises the value of group dynamics. Although he is the ultimate decision-maker, Hayes (2006) notes that Branson listens to the advice of his team, and is open to criticism and challenges. Arguably such an approach to leadership creates cohesion in the team and a sense of ownership in the collective decisions made. In other words, when decisions are implemented, employees of the Virgin Group do not (in most cases) feel that the decisions have been imposed on them; rather they appreciate their active role in making the same decisions they are meant to implement. As Peterson et al. (2003) note, employees are more satisfied in their jobs if their contribution in decision-making is appreciated, and this ultimately affects organisational performance. In the same light, one can posit that Branson’s approach to allow his followers some decision-making prerogative has led to their enhanced job satisfaction, and hence has contributed positively to the successes witnessed at the Virgin. Overall, Branson seems to have attained what Mintzberg (2004) terms as earning leadership from one’s followers. According to Mintzberg (2004), good leaders earn respect from those people working under them. As a firm believer in equality and fairness, Hayes (2006) observes that Branson encouraged a flat-like non-hierarchical human resource structure in his businesses. In his own words, Branson (2012) seems to emphasise the great value he attaches on his followers by asking, “What is a company but a collection of people?” (p. 14). Branson further emphasises his point by stating that “...people are not just crucial to a business, they are the business” (Branson, 2012, p. 14). Arguably, his decision to adopt an inclusive and considerate leadership style coincided with the paradigm shift witnessed in the early 1980’s where transformational leadership was touted as a more befitting approach than transactional leadership. Transformational leaders are defined as those people who inspire followers to rise above their own personal gains for the interest of the organisation, and who are capable of having an insightful and extraordinary impact on their followers (Robins, 2003, p. 252). Interestingly, Richard Branson is cited as one example of transformational leaders, owing to his abilities of being attentive to the development needs and concerns of his followers; helping his followers to look at existing or old challenges in new ways; and his ability to excite, inspire and arouse his followers to action. Based on the above definitions, Branson seems to fit more in the transformational leadership category, going by his approach to leadership and the circumstances surrounding the businesses that the Virgin Group is involved in. According to Bass (1985), transformational leadership is best suited for organisations that are undergoing change and distress, as it reflects the social values that assure the concerned stakeholders of the business’s longevity or steadfastness. Considering that the Virgin Group hopes to continually change as it seeks to attain continual growth, it is therefore possible that Branson made a deliberate decision to use the transformational leadership style in order to inspire trust and loyalty from different stakeholders. Hayes (2006) for example cites a moment in time when Branson gave his personal number to employees of Virgin Atlantic airline and encouraged them to call him with suggestions and ideas on how best to improve the airline. Overall, Branson seems to fit into the team leader definition as advanced by Blake and Mouton’s “influential managerial grid” as cited by Mills et al. (2006, p. 491). Following the provisions of the grid, a team leader is one who has great concern for both his business’s performance and the people working under him/her. The leader “works to motivate followers to reach their highest levels of accomplishment, is flexible, responsive to change, and understands the need for change” (Mills et al., 2006, p. 491). Such a description fits well with the documented leadership portrayed by Branson, and it is for that reason that this paper brands him a transformational team leader. Communication styles of a good leader Barrett (2006) defines leadership communication as “the controlled, purposeful transfer of meaning by which leaders influence a single person, a group, an organisation, or a community” (p. 5). From the above definition, it is clear that communication should be used by leaders to transfer meaning for purposes of influencing. As further indicated in Fig. 1 below, effective leaders need to possess core skills in strategy, writing and speaking since such skills are critical to effective communication at both the managerial and corporate levels. Above that, the leader needs to expand his/her communication skills to include coaching, mentoring, managing meetings, managing teams, emotional intelligence and cultural literacy. As indicated in the outer circle in Fig. 1, the leader also needs to develop corporate communication skills which include image and reputation management, crisis communication, media relations, change communication, and employee relations. Fig. 1: Leadership communication framework Source: Barrett (2006, p. 6). Going back to the Branson example, his open communication strategy as evident elsewhere in this paper (Branson gave his personal phone number to his airline employees to suggest their ideal improvements for the airline hence requesting honest opinions from them), his use of the digital media to communicate with employees, customers and the media, and his numerous appearance in TV shows, radio interviews, magazine and newspaper articles, and the numerous public relations exercises he has been involved in are example of his approach to leadership communication (Hayes, 2006). From his communication approach (not just in written or spoken communication, but also in how he projects himself), Branson has arguably succeeded in projecting a positive image and/or positive ethos of himself to his followers inside and outside the Virgin Group. In a CNBC interview conducted by Hobbs (2007), Branson for example admits that he is the face of Virgin. This then means that although the bulk of the work is done by his followers (employees) in the organisation, the business is judged based on Branson’s perceived character, which is construed from the messages he sends in written, spoken, or in behavioural forms. As Barrett (2006) notes, the appeal of a business depends on whether the person sending messages to both internal and external stakeholders is perceived as confident, trustworthy, knowledgeable and/or believable. The audience’s perceptions regarding the integrity of the message sender also serves as a persuasive force for or against the business he/she represents. Fig. 2: Branson's ethos as reflected in some of his famous quotes Source: The Life and Works of Sir Richard Branson (2012). Just how does Richard Branson communicate, and does it fit into any theoretical communication style? Well, it has been noted that Branson’s style of communication is informal – he has a dislike for formal meetings, does not have a boardroom, and rarely sees the need to hold board meetings. He prefers face-to-face communication, but oftentimes uses telephone conversations, and his presence in the social media is also impressive. His web-log at is quite busy and his interactions with the staff and general public are impressive. Asked how he raised work standards at Virgin without criticising people, Branson said that people are aware of the rights things to do and hence a leader should concentrate on motivating and directing them instead of criticising them or imposing directions on them (Hobbs, 2006). He also said that each of the Virgin businesses is given the freedom to follow its own path and the directorship of its managers, who informally report their progress to Branson (Burns, 2008). His communication style, though hard to fit into one theoretical description, compliments his business’ need for flexibility, speed, creativity, efficiency, and need to be adaptable. Conclusion Globalisation has presented the need for flexibility, and ‘new ways of doing things’ into business organisations. As illustrated in this paper, the Virgin Group under the leadership of Richard Branson has managed to embrace globalisation with all its opportunities and challenges. As a leader, Branson has been seen to play a critical role in the success of the Virgin Group; something that his transformational leadership style and his informal communication approach get credit for. Notably, this paper has established that a leader’s ability to consider both the business’ and followers’ needs is a critical aspect of effective leadership since the business cannot succeed without the workforce, and the workforce would lose out if the business failed. In the same light, a leader must inspire trust and loyalty from his staff and other stakeholders based on the ethos that he presents in verbal and non-verbal communication. As indicated above, at the core of a leader’s communication approaches should be strategy, written and spoken skills for communication. Such are vital in leading global (or even domestic-based) organisations to managerial and corporate success. Thus, it is worth noting that as illustrated in Branson’s case, transformational leadership and open, non-hierarchical systems may be the desirable approaches that current and future leaders may need to adopt in order to increase their potential to handle the complexities and challenges of globalisation. However, and as Branson’s approach has indicated, businesses need not follow strict rules on how to attain success in the global environment. Each leader may therefore need to chart a path for his/her business depending on the unique traits of its operational context and the needs of its employees. References Barrett, D. J. (2006). Handbook of Business Strategy. West Yorkshire, England: Emerald Group Publishing. Bass, B.M. (1985). Leadership and performance beyond expectation. New York: Free Press. Branson, R. (2007). Globalisation laid bare: Lessons in international business. London: Gibson Square. Branson, R. (2012). Like a virgin: secrets they wont teach you at school. London: Random House. Burns, P. (2008). Corporate entrepreneurship: building the entrepreneurial organisation (2nd edition). Basingstoke: Palgrave Macmillan. Daft, R.L. (2002). The Leadership Experience. (2nd edition).Fort Worth, TX: Harcourt College Publishers. Dalglish, C., & Miller, P. (2010). Leadership: understanding its global impact. (1st edition). Prahran, VIC: Tilde University Press. Hayes, J. (2006). Leadership. Centre of Excellence. Retrieved September 19, 2012, from http://www.centreofexcellence.ie/Sectors/sfa/SFANCEDocLib.nsf/441763b04b0320b68025722e003fb55a/bc12f53469df45728025722e003f060f/$FILE/Leadership.pdf Hobbs, S. (2007). Richard Branson. CNBC Business. Retrieved September 20, 2012, from http://www.cnbcmagazine.com/story/richard-branson/236/1/ Mills, A. J., Mills, J. C. H., Bratton, J., & Forshaw, C. (2006). Organisational behaviour in a global context. Toronto, ON: University of Toronto Press. Mintzberg, H. (2004). Managers not MBAs. London: Prentice Hall. Peterson, R.S, Smith, D.B., Martorana, P.V. & Owens, P.D. (2003). The impact of CEO personality on top management team dynamics: one mechanism by which leadership affects organisational performance. Journal of Applied Psychology, 88 (5): 795-808. Robins, S. P. (2003). Organisational behaviour: Global and southern African perspectives. Durban: Pearson South Africa. The Life and Works of Sir Richard Branson. (2012). Branson quotes. Tangent LLC. Retrieved September 20, 2012, from http://mkfca.wikispaces.com/Branson+Quotes Zaccaro, S. (2001). The nature of executive leadership. Washington, DC: APA. Read More