Leadership Changes in a Globalized Business Environment - Essay Example

Leadership Changes In a Globalized Business Environment Name Course title Date Introduction In the current business environment, the performance, growth and development of an organisation is attributed to the management and leadership skills employed. The management bears the responsibility of devising strategies that will lead to achievement of goals and objectives. Furthermore, they lead employees towards the mission and the vision of anorganisation as they aim to acquire larger market share. It is a major desire for an organisation to be influential in the market with notable impacts in the society. Therefore, it requires visionary, informed, creative, innovative and qualified leaders to steer a team that is able to achieve goals within the set period (Zhu, Chew, & Spangler, 2005). The leaders must understand the business environment, its needs, the resources available, the market potential, unutilized resources as well as opportunities available for them to make informed decisions. Since productivity of an organisation is considerably affected by the decision made by the management, caution should be taken when decisions are made. On the other hand, impacts of leadership skills are depicted by the performance of the organisation in the market as well as its competitive edge. Hence, it is of importance to invest in management team that possess the leadership traits that are in line with the organisations core values, and guidelines for efficient and effective operations. Leaders influence their followers given that followers copy and adapt to the mode of leadership style when executing, conducting and approaching issues in the organisation. Furthermore, since change is inevitable in the business environment that is ever growing, it is advisable for organisations to adapt and incorporate different strategies of changes for achievement of maximum benefits. Over the recent years, globalization has affected the business environment both internationally and locally (Tarabishy, Solomon, Fernald, & Sashkin, 2005). This paper seeks to discuss the way leadership has changed within the context of a globalized environment over time as well as analyses a leadership profile and communication styles of a global leader who has achieved greatly in business. Importance of leadership In the current globalized business environment, there exist many definitions of a leader. Most of them converge to the definition that a leader is somebody who has the capacity and capability to visualize strategies on how to achieve goals and objectives at the same time influencing others towards the same. Trends have shown that successful organisations have remarkable leaders with a thorough knowledge and understanding about business practices in a globalized environment (Bhaskaran & Sukumaran, 2007). Moreover, evolution continues to be experienced in business environment due to technological growth in additional to development of new business trends and strategies. Therefore, leadership has a key role to play in the development of the business environment by being the chief initiator, influencer, motivator, and implementer of goals and objectives in any given organisation (McShane, & Von Glinow, 2000). Management Vs. Leadership Judge, Bono, Ilies and Gerhardt (2002) state that, although there is a difference between management and leadership, an organisation that integrates the two approaches reaps maximally in business market. Management is static and directed by written laws while leadership is dynamic and open-minded. Therefore, to realize efficiency and effectiveness there requires a balance between the two aspects. Realization of goals and objectives in an organisation requires implementation of management strategies combined with leadership strategies. Leadership theories In response to this, several leadership theories and models help in understanding of the complex leadership topic. Theories helps explain why things happen in a particular manner while models interpret representation design of elements in a certain concept as well predicting future occurrences. The available theories include Great Man theory, Trait theories, Behavioural theories, Contingency theories, Influence theories, and Relational theories. In analysing the theories, Great man theory holds that leaders are born and not made. The leaders are perceived to be unique people with heroic character traits and are mostly men. This theory claims that in any organisation there is a great man who determined how things took course by use of abilities, qualities, and traits that are inherited (Bhaskaran & Sukumaran, 2007) note that). On another note, trait theory that was invented by researchers between 1900 and 1940 stresses that leaders are born with certain characteristics that helps fit in their positions. This theory separates leaders from followers claiming that effective leaders possess some traits that fit a particular situation for achievement of a specific goal. Therefore, this theory employed a certain model to identify a leader based on these traits dominance, approachable and social, achievement-oriented, self-acceptance and control as well as organisational abilities. Moreover, evolution continued and behavioural theories were developed that were based on determining leaders from analysing individual behaviours. These theories helped to single out leaders in a group on how they conducted themselves in different situations as well as how they responded. However, it worth noting that different environments requires different behavioural conduct when identifying the leader. More evolution continued to be experienced and between 1960 and 1970, contingency theories were developed. They alleged that leadership styles depended on the situation and surrounding environment for effectiveness and efficiency to be realized. Therefore, it concludes that leadership must analyse the goals and objectives set, the followers and the environment they are in so that strategies can be set and implemented (Marc 2006). Moreover, evolution introduced influence theories explaining that leadership is dependent on the influence one has on his or her followers due to personality and qualities possessed by a leader. Charismatic leadership is a good example that is based on these theories depicted by people like Obama, Martin Luther King and Gough Whitlam. In addition, authentic leadership that views leadership as a stewardship role and service to their subjects based on ethical and moral values commitment is another example that borrows from influential theories. They have a vision that they push everybody and causing remarkable influence in their environment. Finally, evolution led to establishment of relational theories that looks into relationship between leaders and their subjects in addition to how they affect each other. These theories dictate that all participants in leadership contribute towards the achievement of visions and goals. Therefore, they concentrate more on developing teams with nurtured communication and interrelationship skills in the business environment. Hence, examples that embrace these theories are transformational and transactional leadership. Transactional style of leadership involves transactions carried out by leaders and their followers while transformational style focuses on bringing change in an environment. Currently, all the above discussed leadership concepts and models have been experienced in the globalized business environment in different places (Drucker, 2006). Organisational cycle Furthermore, understanding the organisational cycle helps to determine how to structure leadership and management goals in any business organisation. Every organisation goes through four stages in achieving a complete cycle namely birth, youth, midlife and maturity. Therefore, at the birth stage an organisation is young and headed by a small number of individuals who are entrepreneurial and purpose driven with an urge to achieve at all means. During the youth stage, the organisation is growing sustainably with teamwork being embraced in additional to emergence of procedures, tasks, responsibilities and systems during operation (Bhaskaran & Sukumaran, 2007). At this stage, selected individuals are closer to the top management. Moreover, during the midlife stage, the organisation has expanded significantly and policies and practices have been established. Intense creativity and flexibility are reduced and the organisation work to satisfy customers’ needs and demands; more focus is on the customers. Finally, the maturity stage the organisation has grown extensively and it has complex procedures and systems that dictate that decision-making be reviewed slowly and keenly. Comprehensive teams are employed to deal with organisational issues and downsizing discussions are among top agendas during management meetings. Whenever an organisation understands its stage in the development cycle, it works to accomplish the needs and demands of that stage. This affects how leadership approaches are tackled and how they change in the globalized business environment without conflicts of interests (Kuratko, 2012). Organisation theory In addition, Tarabishy, Solomon, Fernald, and Sashkin (2005) claim that leadership change has been realized due to understanding of organisation theory that existed from 1900 up to now. The importance of understanding these theories help to realize effectiveness and the efficiency in managing the operations of an organisation. The theory is subdivided into four categories with different time spans; that is Classical (1900 to 1930), Neo-classical (1930 to 1960), Modern (1960 to 1975), and Post-modern (1975 onwards). During the classical period contributions to the theory were received from Max Weber, Frederick Taylor and Henri Fayol. Their theories focused on the industrialized environment and pushed for achieving a formal scientific approach towards management issues within organisations operating through closed systems. They wanted to improve the productivity of workers as well as the equipment used in the organisation during operation. More so, they worked to achieve standard strategies to be used within all organisation regarding issues such as managerial authority, division of work, fair remuneration, equity, and stability of tenure. On the other hand, Neo-classical period contributors included Elton Mayo, Chris Argyris, Mary Follett and Abraham Maslow. The period was referred as depression period where theorists claimed that developing relationships between management and their workers could result to improved productivity and work satisfaction. This period was different from the former one because it viewed organisations as machines that required input to receive outputs and were directly proportional. Furthermore, as evolution entered the modern period the chief contributor was Chester Barnard who claimed that effective leadership in management was attainable through structure as well as communication. Its emphasis was contributions of human behaviour in achieving effectiveness and efficiency in organisations. Lastly, the post-modern period which were are experiencing at the moment took over from 1975. Its key contributors are James March, Gareth Morgan, Herbert Simon, Jeffrey Pfeffer and Tom Greenfield. This period of organisation theory focuses on organisation’s political nature, rationality limits of decisions arrived at as well as conflicting interests of decisions made. Moreover, the approach of this theory explains why organisations have different designs that are funded by their preferences and interests (Judge, Bono, Ilies & Gerhardt, 2002). Communication needs Communication is important in any environment because they help present ideas either formally or informally stressing on the core points of the message. Developing relationships in business environment is critical to achievement of goals and objectives and require mutual understanding. Therefore, in a globalized environment that contains individuals from different cultures require good leadership skills to establish performing teams that interact effectively. Analyses have shown that managers face different challenges in multicultural environments when striking a balance between individual culture and organisational culture. Therefore, communication in a business environment is guided by the organisational culture that sets the standards for all the organisation’s members including the management team. Organisational culture is the established norms, beliefs and practices in any organisation that determine how different operations are approached and handled. It helps the management to develop strategies that are not contradicting with the organisations core values, principles and practices. Therefore, it empowers teamwork development and creates a favourable working environment to achieve set goals. Statistics have proved that organisations that embrace empowerment organisational culture are more productive and successful in the market (Kuratko, 2012). Furthermore, in organisations there are different initiatives that management have undertaken to promoting the effectiveness of the organisational culture on working environment. These initiatives includes embracing standard language, integrating technology, developing flexible working schedules as well as introducing corporate social responsibility in the business operations. This has helped the globalized business environment to grow rapidly and face existing business challenges in a more mature manner. Therefore, it is justified to acknowledge that effective leadership has helped achieve these significant steps in a competitive market (Judge, Bono, Ilies & Gerhardt, 2002). Conflicts resolution On the other hand, due to the intense growth in the business environment there arise conflicts among the members in an organisation. The manner of resolving conflicts determines the future of an organisation. Therefore, it requires leadership that does not favour nor discriminate but allows justice to prevail no matter the relationship whatsoever. There are five conflicts styles namely competing; where one loses and the other wins, collaborative; where both parties agree to achieve a win, compromising; where both parties wins and loses simultaneously, avoiding; where both parties work for the other to lose in additional to accommodating style; where one offers to lose for the other to win. Studies have shown that organisations where discrimination and favouritism is encouraged achieve minimally than where justice prevails. Such strategies have helped the evolution of business environment that was formerly crowded with nepotism, ethnicity, racism and status quo (McShane, & Von Glinow, 2000). Steve Jobs Case Study In the current competitive market, an organisation is required to gain competitive advantage for it to be considered influential. Achieving this can only be through its leadership given that they influence future anticipation, strategies development in additional to change initiation to improve the performance. Therefore, it is of importance noting that I do consider strategic and transformational leadership being an asset to an organisation that requires considerable investment by investors. Some of the well doing companies in the global market possess creative, unique, farsighted and knowledgeable individuals who crave to achieve impressive results with remarkable impacts in the society (Zhu, Chew, & Spangler, 2005). Therefore, in technology field that is growing rapidly I admire Steve Jobs. Technology is a basic component in the world we are living today and it requires everybody to be technology literate. The technology evolution will greatly change the way of operation in businesses, homes and personal lives. Over the past few years, technology has skyrocketed to height never thought of, courtesy of tireless developers, inventors, manufactures, designers among others. There are reputable personalities who have contributed significantly in the these field such as Steve Jobs; the founder of Apple products, Mark Zuckerberg; founder of Facebook, Larry Page and Sergey Brin; founder of Google, Bill Gates; Microsoft founder and Jack Dorsey; founder of Twitter. These among other technologists have revolutionised the technology world and created endless impacts and opportunities in the current world. Entrepreneurship approaches, strategies and policies determine the success of any given organisation and they need to be analysed critically for maximum benefits to be achieved (Walter, 2011). Steve Jobs was an American born inventor, entrepreneur and marketer who lived between February 24, 1955 and October 5, 2011. He was the co-founder and Chief Executive Officer of the legendary Apple Inc. that was founded in 1976. He is respected over his significant contribution in the personal computer revolution in additional to his reputable career in consumer electronics in different fields of technology. Moreover, the current overwhelming smart phone technology owes him great courtesy for his influential contribution in its production. Furthermore he contributed to Pixar Animation Studios, owned by The Walt Disney Company, where he served as a top official, Macintosh as well as LaserWriter. These companies have left landmarks in the market through products and services they offer (Blumenthal, 2012). Steve Jobs in conjunction with Steve Wozniak founded Apple Inc. in a small garage store in Silicon Valley so that they may manufacture computers. He experienced various difficult challenges but he never gave up on his dream about computer technology. He once presented his idea of developing personal computers to Hewlett Packard but it was rejected because it was not viable. Moreover, the company he had founded, Apple Inc. once fired him for being too visionary. However, he did not surrender but pursued his visions and ambitions by starting another company, NeXT Inc. later, when management in Apple Inc. could not handle its operation and struggled to the point of going bankrupt, he was recalled (Blumenthal, 2012). He made transformation to the company to become a top profitable company globally even currently. His unique leadership traits earned the company competitive advantage by producing a wide range of gadgets such as iPods, iPhones, iPads, MacBook computer series as well as iTunes. Furthermore, the current smart phone technology that has taken the world by storm owes him courtesy due to his significant contribution during its production (Walter, 2011). Conclusion In can be concluded that, evolution has been experienced in the globalized business environment that have affected the leadership in organisations. As the business market has grown, the management needs and leadership strategies have been developed aided by various theories. Moreover, organisational goals, objectives, and strategies determines the kind of leadership to be embraced and the changes to be made along the way. Likewise, the organisation development stage is a key factor to determine leadership evolution. Analysis of Steve Jobs shows the importance of understanding business goals and displays remarkable leadership skills. Therefore, it is justified to concluded that Steve Jobs was a visionary and innovative leader who predicted the future market needs in technology field. He displayed a good example of effective transformational leadership in technology field. References Zhu, W., Chew, I. K. h. & Spangler, W. D. (2005) CEO Transformational Leadership & Organizational Outcomes: The Mediating Role of Human-Capital-Enhancing Human Resource Management. The Leadership Quarterly, 16(1), pp. 39-52. Tarabishy, A., Solomon, G., Fernald Jr., L.W. & Sashkin, M. (2005) The Entrepreneurial Leader‟s Impact on the Organization‟s Performance in Dynamic Markets. Journal of Private Equity, 8(4), pp. 20-29. McShane, S. L. & Von Glinow, M. A. (2000) Organizational Behavior. Burr Ridge, IL: McGraw-Hill. Judge, T. A., Bono, J.E., Ilies, R. & Gerhardt, M.W. (2002) Personality & leadership: A Qualitative & Quantitative Review. Journal of Applied Psychology, 87(4), pp. 765-780. Boehnke, K., Bontis, N. Distefano, J., & Distefano, A. 2003 Transformational Leadership: An Examination of Cross-national Differences and Similarities. Leadership and Organization Development Journal, Vol.24, no.2, pp. 5-17. Bhaskaran, S & Sukumaran, N 2007, “National Culture, business culture and management practices: Consequential relationships in Cross Cultural Management” An International Journal, Vol.14, No7, pp54-67. Marc, J. (2006) “Globalization, Power, and Survival: an Anthropological Perspective”, Institute for Ethnographic Research, Anthropological Quarterly, 79(3), pp. 484–486. Kuratko, D.F. (2012), Entrepreneurship: Theory, Process, Practice, 9th Ed, Mason,Ohio: South Western Cengage Learning, Drucker, P. F. (2006), Innovation and Entrepreneurship, New York: HarperBusiness, ISBN-13: 978-0060851132. Blumenthal, K. (2012), Steve Jobs: The Man Who Thought Different, New York: Square Fish, ISBN-13: 978-1250014450. Walter, I. (2011), Steve Jobs, NewYork: Simon & Schuster, ISBN-13: 978-1451648539. Read More