Leadership in the Global Context - Literature review Example

LEADERSHIP IN THE GLOBAL CONTEXT [Insert student’s name] September 25, 2013. LEADERSHIP IN THE GLOBAL CONTEXT Introduction Leadership is defined as a way of influencing people in order for them to produce change or achieve goals. Hence from the above definition, it is evident that leadership is important in creating organizational change. Additionally, it is evident that due to the fact that leadership is influencing, it is communicative in nature. Transformational leadership is one of the leadership styles that has been developed in the global world. Transformational leaders in most cases try to shape the meaning of the followers, particularly their works meaning. Transformational leadership emerged during the awakening of globalization. According to Cheney, George et al (2011, p. 185), in the 1980s, the global economy was emerging and as a result the pace of change of increasing. American feared being overtaken as an economic power while japan was increasingly emerging as a world power. This made US organizations to realize the necessity of change in order to compete successfully. Hence, transformational leadership fits the notion that there is need for leadership to change the organizations particularly for the global economy as well as the emerging forms of competition. The current global business environment is not only evolving, challenging and exciting but also marked by multiculturalism, complexity and change (Cheney, George et al, 2011, p. 189). Consequently, most organizations are involved in challenging processes such as absorbing competitors or being acquired by other companies or in some cases being responsible for complicated reorganizations globally (Beechler & Baltzley, 2008, p. 16).The mentioned situations are likely to result into management and communication challenges and this can only be addressed if change management and cross-cultural management strategies are imperative. With the mentioned combination of the strategies, management have adapted tools and concepts with an aim of bridging the cultural differences, maneuvering the dynamics of organizational culture as well as aligning and engaging people in order to achieve organizational objective in a global context. For globalization Montgomery (2008, p. 41), argues that leaders have adapted a global mindset, facilitated organizational change, negotiated conflicts, worked as equals with people with diverse cultures, motivated employees, establish learning systems, understood their own assumptions and values, participated in multicultural teams, as well as demonstrated their respect and knowledge of other countries. However, according to Montgomery (2008, p. 67), the key to international leadership is a mixture of managerial competencies and personal characteristics. According to Regester & Larkin (2008, p. 46), the determinant of global competencies is psychological profile particularly of personality characteristics which entail self-confidence, emotional stability, intellectual capacity and openness to experience. Managerial competencies that are needed in the global business context include: cultural sensitivity, ability to handle stress, relational abilities and linguistic ability (Kramer, 2005, p. 23). Due to the fact that the global market is characterized by integrated entity, emotional intelligence and cultural intelligence have been adapted by most leaders so as to succeed in the global world (Beechler & Baltzley, 2008, p. 34). Kramer (2005, p. 23), leadership has changed by adapting competent communication entails communicating a vision as well as influencing others towards attaining an organizational objective. In order to successfully offer leadership skills in a global environment, Stogdill (1999, p. 43), leaders have built awareness. In the global changing business environment leaders have become not only to be open to knowledge but also developed new skills that have helped them in global competitive world. Consequently, leaders have focused on understanding the cultural attributes of the people they are working with in addition to their expectations. The attributes have been evident in areas such as how organizational problems are solved, the role of the senior management, the relationship between the employer and the employees, time management and how to ensure efficiency among other areas (Beechler & Baltzley, 2008, p. 102). Montgomery (2008, p. 90), in his study points out that in most cases, in global management, tradition prevails over logic, hence global leaders have focused on learning history and values of the people/employees to avoid cultural conflict. Additionally, in the changing global business context, the leaders have developed alliances with other leaders from distinct cultural backgrounds who are in a position to provide different perspectives for the purpose of comparison. Consequently, the leaders have become culturally intelligent so that they are in a position to adapt their behavior in order to suit different global context and circumstances without necessarily altering their leadership styles. According to Beechler & Baltzley (2008, p. 117), if leaders are strongly aware of the requirement of the changing global business context, they will be in a position to determine whether the employees are from collectivist vs. individualistic culture or if they can perform better in bureaucratic vs. autocratic environment or if they are motivated by incentives and not punishment (Regester & Larkin, 2008, p. 46). Hence, to be a successful global leader in regard to the changing global market, leaders have concentrated on spending sufficient time with their employees so as to understand their comfort level as well as give them the opportunity to share their concerns in order to survive in the competitive environment. In the changing global business environment, it is important for the leaders to have developed effective communication skills (Stogdill, 1999, p. 18). They have appreciated the need understand the cultural attributes of the employees and adapted their environment and change their communication styles in order to suit the demands of the global organizational environment. According to Montgomery (2008, p. 67), apart from the importance of using clear language, modern leaders to determine how much information is required to be imparted in order to attain the required organizational objectives and goals. Hence, in the changing globalized environment, leaders have adjusted their communication styles in order to take into account the culture of the people. According to Stogdill (1999, p. 23), the notion of globalization can be linked to interdependence, with the existence of easy and fast movement of information, capital as well as people, distributed units are no longer isolated as before. Kramer (2005, p. 16), interdependencies result into complexities, hence global leaders has attended to as well as managed complex systems of technological and human interactions as compared to domestic leaders. Stogdill (1999, p. 22), in his study too identifies a number of capabilities and skills required by leaders in the changing global context and categorizes them in six headings: global perspective, ability to motivate people, entrepreneurial behavior, business savvy, strong character, as well as the ability to use personal influence. However, (Senge, & Peter, 1990, p. 187) have highlighted five key categories of leadership skills that are required in the changing world. Apart from creative problem solving skills, social judgment skills as well as social skills, global leaders have demonstrated four distinct types of knowledge: knowledge associated with people, organization, task and business. Nonetheless, Beechler & Baltzley (2008, p. 89), have not only approached but has also desired competencies mainly from a company perspective as well as identifying eight desired developmental dimensions needed for global leadership: ethnocentrism, openness, flexibility and being able to change their leadership style on the basis of the context/situation. The mentioned are some of the attributes that leaders have demonstrated in the changing global world in order to deal with emerging technologies and diverse cultures. Additionally, leaders have concentrated on having sufficient knowledge on global structure of the company as well as global professional contacts (Stogdill, 1999, p. 66). Kramer (2005, p. 56), in his study however identified end-state skills which entail sensitivity to cultural differences, business knowledge, courage, insightfulness, ability to bring out the best in employees, risk taking and commitment to success. Additionally, leaders in the changing global context have learned to demonstrate the mentioned by seeking opportunities using feedback, being flexible, and openness to criticism as well as being culturally adventurous. Stogdill, (1999, p. 32), in his study however emphasizes that global leaders are characterized by self-awareness. Self-awareness means that a leader has deep understanding of his, emotions drives and needs, reactions to problems and sources of frustrations, in addition to strengths and weaknesses. Beechler & Baltzley (2008, p. 56), maintains that a leader in the changing global context are currently aware of their own defensiveness as well as their operations prior to realistically assessing the problems or the required resources in dealing with the same. Self-insight have enabled the leaders to be in a position to not only listen to others but also assess the value of what they have to offer in terms of leadership in the changing global context. The mentioned is further related to value diversity and openness. Stogdill (1999, p. 33), also emphasizes that self-awareness is fundamental not only to social awareness but also to self-regulation, which in turn are important for social skills which re needed for effective relationships management in the changing global context. Elaborating on the social judgment skills, Kramer (2005, p. 67), points out that as a result of changing global context, leaders now see things in a big picture or perspective as it is one of the key component of leadership competencies according to most scholars. Perspective taking capacity is essential in two distinct ways. First it can be defined as the ability of a leader to extend a given context beyond a particular situation or problem, which mainly has a positive impact on the learning capacity (Rhinesmith, 1993, p. 78).The mentioned have not only assist in observing but also accurately profiling the culture of others across the globe. Secondly, leaders have acknowledged that any solution is not only implemented but also distinctly applied in social contexts. Additionally, leaders in the global context have demonstrated social judgment skills which entail social perceptiveness, self-objectivity, monitoring social systems, awareness of different dynamics and settings and, sensitivity to relevancy of the organizational goals in the changing global context. Therefore, from the discussion, it is evident that it is important for leaders to understand facts about different nations as well as cultures, business procedures in addition to local information on practices and customs, both from business and social perspective. Profile of a global leader and the communication styles The world leader I admire most is Michael T. Duke who is the president and chief executive officer of Wal-Mart store, Inc. as a CEO, Mike leads a strong management team that ensures realization of the organization’s mission. Under the leadership of mike, the international business of the company has grown. Mike has a built an internal management team an aspect that has contributed to expansion of Walmart into emerging and mature markets in a complex global environment (Forbes, 2011, p. 23). Mike is a transformational leader and he relies on rhetorical skills in order to create meaning and articulate vision for the followers. The leaders focus on the process of communicating the message to its targeted audience. According to Rhinesmith (1993, p. 17), the communication style is essential in distinguishing whether the message of the leader will be endorsed as well as remembered. Consequently, every leadership dimension such as intellectual simulation, charisma and individual consideration are positively correlated in one way or the other with the communication competence construct (Senge, & Peter, 1990, p. 169). Hence, Mike exhibits communication competence which is a prerequisite for effective leadership. According to Kramer (2005, p. 73), people who are viewed as emergent leaders have proven to be having good communication skills. In regard to the mentioned, it can be concluded that effective transformational leadership is partial dependent on the ability of the leader to not only construct messages but also to engage in communication. The leader is said to be exhibiting transformational leadership because he is not only portraying inspirational motivation and charisma but also individualized consideration and intellectual stimulation. Mike has idealized influence on his followers. According to Birchall, Hee, & Gay (1996, p. 19), idealized influence is defined as the charismatic actions of the leader that are mainly centered on beliefs, values in addition to sense of mission. Due to the fact that Mike is regarded as a transformational leader, as he motivates his followers i.e employees to perform extremely well than they initially intend to. This makes the followers not only to trust but also to respect as well as identify with the leaders in addition to organizational goals and mission. Kramer (2005, p. 56), defines inspirational motivation as the ability of the leader to articulate not only values but also goals an aspect that makes the followers to transcend their own self-interests. Furthermore, studies have proven that inspirational motivation enables leaders to experience meaning as well as challenges for engaging in shared goals and undertakings in addition to future opportunities and work (Rhinesmith, 1993, p. 53). Consequently, Mike as a transformational leader have demonstrated optimism, confidence and hope to the followers, making them to be optimistic, hopeful and confident too. We have also pointed out that Mike Has intellectual stimulation which refers to the encouragement of the transformational leader to the followers so that they could think of new approaches/methods of solving problems (Stogdill, 1999, p. 71). Rhinesmith (1993, 67), intellectual stimulation enables transformational leaders to promote the necessity to think differently as well as promote organizational culture whereby other employees are encouraged to question old beliefs, assumptions and paradigms. It is argued that the mentioned approach stimulate the innovativeness and creativity of the followers (Kramer, 2005, p. 45). It is important for a leader to be a cross-culturally competent communicator so as to be in a position to establish an interpersonal relationship with the foreign internationals via effective exchange via non-verbal and verbal levels of behavior (Rhinesmith, 1993, p. 25). Mike is a cross-cultural communicator as he exhibits competence, entailing communication skills, relationship skills as well as personal traits like inquisitiveness. Birchall, Hee, & Gay (1996, p. 34) points out that cross-cultural communication competence is not only about knowledge of the language and culture but also behavioral and affective skills such as charisma, empathy, human warmth as well as the ability to manage uncertainty and anxiety. Mike being a culturally competent leader has skilled actions, sufficient knowledge and is motivated and hence can competently interact in the global context. The Walmart CEO as a transformational leader depends on rhetorical skills so as to create vision in addition to creating meaning for the followers. He uses symbols, metaphors, language, vivid images and non-verbal behaviors with an aim of influencing the followers. Consequently, crafting as well as communicating n inspirational vision is essential to the organizational success (Nardon & Steers, 2008, p. 72). Additionally, the CEO uses his leadership skills by promoting beliefs and values that do not only reinforce commitment but also provide guidance for the daily activities so as to establish a meaningful framework for the organization’s mission. Kramer (2005, p. 45), in his study points out that while the message of the leaders is critical, the communication process is important. Additionally, the style of communication is significant factor in distinguishing whether the messages will be endorsed and remembered. This is where the communication competence and the art of rhetoric is significant in the language of leadership (Birchall, Hee, & Gay, 1996, p. 67). According to Kramer (2005, p. 61), a transformational leader ensures that there is morale among the employees. The leader goes to the organization in order to find the key concerns of the employees and strategize ways of improving the same. As a leader, the Walmart CEO has not only ensured that employees work to develop their talents. Additionally, transformational leaders ensures that employees work towards attaining promotion because transformational leaders encourage them to develop as a person. Birchall, Hee, & Gay (1996, p. 56), is a global leader as he further find time to not only encourage the employees during tough times but also congratulate them in case of success and acknowledge in case of important events in their lives. As a leader, the CEO has retained the employees in the company. This is because he takes into consideration the needs of the employees. This kind of leadership ensures that there is lower turnover an aspect that results into lower training costs (Corporate Leadership Council, 2003). The mentioned is essential in circumstances whereby training is expensive especially among countries that depend on employees having certification on the areas that they train them on. Consequently, transformational leaders inspires the employees to work to the company’s advantage. As the employees re likely to feel the sense that they are working to the company’s advantage and in the process willing to cut costs, share ideas, take office suppliers and take part in the decision making process for the purpose of improving the company’s performance (Senge, & Peter, 1990, p. 187). Due to the fact that transformational leaders always seek opinion of the employees, there is information flow from bottom to top particularly in the management chain (Regester & Larkin, 2008, p. 49). This results into money saving ideas or establishment of new product line that can be profitable to the company. According to Kramer (2005, p. 56), if front line employees are motivated, they are not only likely to be productive in their positions but also be in a position to generate more idea power for the company. Corporate Leadership Council (2003), a transformational leader is good for the company. This is because they give the employees time to air their concerns. The leader further works directly with the employees making him an admirable leader in the global context. This enables him to keenly pay attention to the employees’ problems and find solutions for them hence developing an effective personal relationship (Regester & Larkin, 2008, p. 40). Time spend with workers listening to the needs of the employees make the leader to have a better understanding of the workplace. Birchall, Hee, & Gay (1996), as a global leader understands the needs of the employees and hence have successfully strategize how to successfully provide for them. Consequently, employees are in a position to get more recognition because the leader can see their accomplishments. Moreover, transformational leaders are usually capable of standing in front line for the employees when they can. Instead of implementing all the ideas that is sent to them, they will consult with the front line employees too and find ways of assisting them (Senge, & Peter, 1990, p 161). In conclusion, however, in the global context, it is important for organizational management to focus on cultural assimilation by ensuring that employees are provided by support and feedback, cross-cultural information, fostering an open culture, appropriate levels of oversight, diverse leadership teams and small group loyalty, and therefore providing access to internationally experienced role models, mentors and coaches. References Bartlett, C.A. and Ghoshal, S. (2002), “What is a global manager?” Harvard Business Review, Vol. 70 No. 5, pp. 124-32. Bennis, W.G. & Thomas, R.J. 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