Contemporary Leadership Challenges - Essay Example

Contemporary Leadership Challenges Institution Date Introduction Leadership is an important success factor in today’s business environment. Leaders provide the guidance that enables the factors of production to be easily brought together to produce the organizations products. Leaders in contemporary organization must realize the importance of the leadership role and its contribution to guaranteeing organizational success. They must also be aware of the challenges that make contemporary organizational leadership more complex. Moreover they must possess the necessary leadership competencies and theories that ensure success in a competitive business environment. This paper discusses the importance of leadership in contemporary workplaces. It starts by outlining why leadership is more critical to organizational success nowadays. Secondly, it discusses factors that contribute to the contemporary leadership challenge. Thirdly, it explores how managers can use leadership theories to enhance their leadership competence in contemporary workplaces. In addition, the paper recommends strategies that leaders can use to overcome the leadership challenges. Finally, the paper concludes by illustrating why leaders need to be aware of contemporary leadership challenges and leadership theories. Why is Leadership so Important? The ability to influence followers has become more important in contemporary management contexts. Leaders need to be more than people who just give orders and expect them to be followed (Fallon, 2014). Due to changes in the business environment, organizations require leaders who can be able to bring out the creativity of their employees and leverage their potential to make the organization they lead competitive (Kultalahti and Viitali, 2015). Leaders should be able to effectively delegate tasks and inspire their followers to complete these tasks to the best of their ability. According to Eberhardt and Majkovic (2016), organizational success in a competitive business environment is dependent on leadership competence. Leaders should be effective to ensure that the organizational goals are met and exceeded. Leaders are important as they formulate and communicate the strategic direction if the organization (Yukl 2010). There are also responsible for motivating employees to dedicate themselves to the realization of the organizational goals. The constantly changing business environment also makes leadership an important success factor in organizations. Leader s in past workplaces focused on flexibility and speed (Eberhardt and Majkovic 2016). However, these areas of focus are no longer important as technological changes, global focus and changes in the social political spheres force leaders to focus on agility and resilience (Judge and Robbins 2015). Businesses face multiple challenges and it is important that they survive the challenges and recover quickly. Emotionally intelligent leadership is needed to guide the organization through shifts and be able to excel despite the myriad challenges. Leadership is needed to ensure that businesses stay on top in their industry section in spite of challenges from various sources. Factors that contribute to the contemporary leadership challenge Businesses have always needed leaders to inspire, motivate and encourage employees to achieve the organization’s goals. However, several factors have resulted in a dramatic change in the business environment where leaders are expected to inspire commitment to organizational goals (Fallon, 2014). Some of these factors are discussed in the section below. Changing nature of work The changing nature of work continues to throw workplace leadership challenges never experienced before. Decades ago most work in organization was industrial in nature (Fallon, 2014). Most employees were engaged in relatively unchallenging and repetitive tasks. Organizations could motivate them to increase the pace of work through monetary rewards. Speed was the most important measure of performance during this era. In contrast, the nature of work in today’s workplaces demands for creative employees able to complete complex mental tasks as part of their work. Creativity is the new measure of performance and leaders are supposed to inspire their followers to become more productive (Yukl 2010). Technological Changes The lightening pace of technology change is one of the greatest challenges of contemporary leadership. Technological tools that were relevant and useful two years back have become obsolete. Many leaders find it hard to stay in front of technology. Older leaders feel uncomfortable around new technology, but they have to lead increasingly tech-savvy generation Y employees (Kultalahti and Viitali, 2015). However, these leaders can use the gen-y employee to help the organization stay current in terms of technology. Globalization forces Globalization expresses itself as both a leadership challenge and an opportunity for businesses. Globalization has opened up new markets that offer new investment opportunities to businesses (Fallon, 2014). However, this also means that leaders have to be aware of what is going on in these markets. Today, businesses are affected by global events more than ever before. For example, the protest against Nike’s poor labour relations in their apparel shops affected many clothing chains around the world (Proquest 2007). It is imperative for leaders to be aware of global changes and successfully manage their impact on the business. Changing demographics Changing demographics in the workplace and the market are also a major course of concern for organizational leadership. In the US, disposable incomes among Generation Y, Latinas, and African Americans has increased greatly (Fallon, 2014). This means that the workforce and its leadership should be able to handle the needs and preferences of the changed market. The changes in the market affect hiring practices as the workforce has to consist of members from these demographics to tap into the diverse market. Organization are forced to hire across ages, genders and race to ensure positive reaction from the market (Judge and Robbins 2015). However, managing diverse workforces is also a challenge for contemporary managers. Changing Motivation Systems For many years, money remained an effective motivator for employee performance. However, the power of money as a motivator for employee performance has started fading in recent times (Avalio, Walumbwa and Weber 2009). Today’s workplaces are increasingly populated by Generation Y employees who argue that making a difference in the world is more important than money. Generation Y employees assert that they are motivated by factors such as autonomy in their work, noble organizational goals and a fulfilling job to commit to the organization’s goals (Kultalahti and Viitali, 2015). These new aspirations make contemporary employee motivation more difficult than in earlier times. Customer Motivations and Needs Success in business environments is dependent on identifying what customers want and fulfilling this need. However, finding what customers want and need is not straight forward and easy (Connely et al 2016). Many CEOs struggle in finding out what customers really need. In addition, the leaders have to contest with changing customer needs. Failing to keep up with customer needs can result in the failure of the organization. An effective leader should listen to customer voices through all channels available including social media, customer surveys, personal visits and trade show. These activities should be done regularly to ensure that the organization is up to date with the most current customer needs and requirements. According to the CEO of Nautilus, Leader can learn a lot about customer requirements by seeking continuous feedback of customer needs and requirements (Avalio, Walumbwa and Weber 2009). Attracting and Retaining Talents The challenge of attracting and retaining talented individuals has increased in recent times. Culture and company leadership are important consideration for young talents who are no longer attracted to mere industry leadership (Nazari and Ahadi 2016). Companies with poor employee culture and bureaucracies can no longer hide their poor employer track records. Information on organizational culture and employee treatment is available from websites such as glassdoor and Rate my employer. Today, organizations have no choice but to hire able leaders and enhance their organizational culture. Otherwise, poor leadership and organizational culture will be exhibited by the organization’s employees on various forums (Fallon, 2014). Organizations can create a strong culture of respect and collaboration within the company. This impression will be communicated outside the organization by employees who are impressed by their leadership. To solve this problem, Yukl (20) advises leaders to treat their employees like volunteers whose commitment is not related to the salaries or benefits they receive. Van Wart (2013) points out that employees make choices everyday to show up for work, solve organizational problems and the amount of effort they will expend towards the realization of the organizations goals. According to Allio (2012), the culture and leadership of the organization affects these choices more that wages or salaries. Leadership Theories for Effective Leadership The charismatic leadership style The charismatic leadership theory is one of the leadership theories contemporary leaders can apply to improve their leadership style. According to Judge and Robbins (2015), employers are more likely to be motivated to pursue the organization’s goals by a leader who has strong forces of persuasion, personality and is eloquent in communication. Leadership charisma conjures enthusiasm among followers and inspires them to dedicate their efforts towards realization of the stated goal or vision (Yukl 2010). Fortunately, leadership charisma can be learnt as seen in the case of many politicians. Charismatic leaders lead by example and will take the role of their followers and therefore eliminate any impression of hypocrisy. However, charismatic leaders may use their leadership charisma to pursue their own goals at the detriment of the organization. Transactional vs transformation leadership Transactional theories are increasingly becoming unsuited for the work environments discussed earlier. Transactional leadership focuses on day to day task where measures of performance are speed and flexibility. Transactional leadership is weak as it uses rewards in exchange for performance. However, rewards have been shown to be ineffective as motivational tools in contemporary business organizations (Fallon 2014). In contrast, Transformational Leadership, focus on the long-term goals and visions of the organization by inspiring subordinates to give their best to the organizations by providing incentives, inspiration and opportunities for professional and personal development (Yukl 2010). Transformational leaders are also visionary leaders who are able to create and articulate credible, realistic, and attractive visions for the organization. Visionary leaders are able to articulate their visions both verbally and through their leadership behavior. Authentic leadership theory is another important leadership theory that is applicable in the contemporary workplace (Gardner et al 2011). Authentic leaders are those that inspire following because people consider them as ethical people. Authentic leaders are trusted by their followers who have a positive expectation that the leaders will not behave opportunistically. According to Gardner et al (2011), it is important to obtain the trust of employees through exhibiting competence, loyalty, openness and consistency. Behavioral Theories of leadership identify three leadership styles that are used by leaders in different contexts. These leadership style include autocratic, democratic and Lissez-faire leadership (Yukl 2010). Autocratic leaders make decisions without considering the input of their followers. On the other hand, democratic leaders allow for a level of follower input in decisions. Democratic leaders are more suited in leading in contemporary workplaces where employees are motivated by being involved in decision making (Avalio, Walumbwa and Weber 2009). Contingency theory of leadership is based on the assumption that there is no single correct type of leadership for all leadership situations. Proponents of this theory call for leaders to use leadership styles that are suited to particular leadership contexts (Yukl 2010). For example, the autocratic leadership style should be preferred where quick decisions are to be made. In contrast, democratic leadership is needed where the full support of the team is needed. Transformational leadership style has been mentioned repeatedly as the most suitable leadership style in contemporary workplaces. Transformational leaders hold most of the leadership qualities praised in other leadership theories (Avalio, Walumbwa and Weber 2009). There are charismatic and visionary leaders who are also able to authenticate their leadership among followers. They also lead by example and represent the role models contemporary employees find inspiring. Strategies to overcome challenges in leadership: Use Inspiration not Coercion One of the most important tips to contemporary workplace leaders is to use less coercive power. An effective leader should exhibit behavior that offers enough reasons for the subordinates to do what the leaders wishes (Yukl 2010). The leader must ensure they he/she does not mistreat or disrespect his/her superiors. In practice, the leader should treat his employee the same way he/she expects to be treated to the boss he/she reports to. It is important to avoid scolding employees as this kills their confidence (Judge and Robbin 2015). However, it is also important to be a bit strict in leadership practice to ensure that followers listen and follow guidance. Open communication Effective leaders should be aware of the employment related needs of their employees and be able handle them (Avalio, Walumbwa and Weber 2009). While effective leaders should create an environment where employees work autonomously, it is important to identify and react to their needs (Zapata-Cantu 2016). Leaders should ask their subordinates to communicate their grievances. By allowing open communication about problems, the leader avoids a situation where employee bad-mouth their own organization and tarnish its reputation. Leading by Example According to Eberhardt and Majkovic (2016), inspiration is all about leading by example. Leaders should show their subordinates the kind of attitude and behavior they should exhibit towards their work. Employees at P&G reported that they felt motivated to perform beyond expectations when supervisors occasionally accompanied them to the field and assisted in making sales. Bosses need to guide employees on what is wrong or right in various situations they encounter in the workplace. Plan Intelligently Effective leaders know how to lay out long-term plans that can provide a objectives for subordinates (Yukl 2010). In addition, leaders also develop contingency plans that they can fall back-on once the initial plans fail. Why is this knowledge important? In a changing business environment it is important for business leaders to identify why effective leadership is needed in contemporary organizations. Some of these challenges include an ever changing business environment that constantly throws up leadership challenges. In addition, leaders work in workplaces affected by fast-changing technology. Moreover, the natures of work and employee motivation factors have changes over time. These dramatic changes in the work environment mean that leaders have to be aware of how leadership theories can assist them overcome the challenges. The knowledge gained by learning how leadership theories apply to contemporary organizational leadership challenges will enable make them better leaders in their organizations. This paper suggests that leaders in contemporary organizations should practice transformational leadership where they will employ their visionary leadership, charisma, authenticity, and leadership by example to inspire employees to commit to the organization’s objectives. References Allio, R.J., 2012. Leaders and leadership-many theories, but what advice is reliable?. Strategy & Leadership, 41(1), pp.4-1 Avolio, B. J., Walumbwa, F. O., & Weber, T. J. (2009). Leadership: Current Theories, Research, and Future Directions.Annual Review of Psychology 60 (2009), pp. 421-449. doi: 10.1146/annurev.psych.60.110707.163621. Connelly, B., Dalton, T., Murphy, D., Rosales, D., Sudlow, D. and Havelka, D., 2016. Too Much of a Good Thing: User Leadership at TPAC. Information Systems Education Journal, 14(2), p.34. 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Upper Saddle River, NJ: Prentice Hall Zapata-Cantu, L., Cantu Delgado, J.H. and Gonzalez, F.R., 2016. Resource and dynamic capabilities in business excellence models to enhance competitiveness. The TQM Journal, 28(6). Read More