Organisational Development and Behaviours That Calls for Sustainable Leadership - Coursework Example

Sustainable Leadership Name: Institution: Course: Lecturer: Date: Table of Contents 1. Executive Summary.....................................................................................................3 2. Introduction..................................................................................................................4 3. Organisational Development, Behaviour and Leadership.......................................4 4. Resource Based View of an Organization..................................................................5 5. Organisational Culture in a Dynamic Environment.................................................6 6. Ineffective Management in a fast changing Environment........................................8 7. Management of Business Environment......................................................................8 8. Leadership Models and Theories in a Changing Environment.............................10 a) Contingency Theory...................................................................................................11 b) Path-goal theory.........................................................................................................11 c) Transformative Leadership.......................................................................................11 d) Charismatic Leadership............................................................................................12 e) Leadership – Member Exchange theory..................................................................12 9. Eco-leadership............................................................................................................13 a) Eco-leadership Discourse............................................................................................14 b) Connectivity, Interdependence and Ethics................................................................14 Executive Summary Sustainable leadership is key and major determinant of the firm’s success. It is always important to instil sustainable management within a firm which act as a signal to stakeholders. The stakeholders in this context include investors, employees, consumers as well as vendors. In their quest to sustainable leadership, leaders must be ethical. Ethics goes beyond environmental concerns. It embraces innovative and new business model which recognises the interdependence of stakeholders. Productivity within the firm reduces when stakeholders get worried and insecure about the firm’s operations instead of embracing available opportunities. In such a case, confidence is the key. The concept of hiring and retaining the right talent is vital to a sustainable business model. Commitment to socially responsible practises and environmental consideration ensures satisfaction and royalty. A sizeable number of global firms operate in a multi-directional communication. Firms no longer exercise traditional concepts of selling but rather build relationship and partnership with customers for sustainable success. However, engagement extends beyond consumers to the overall stakeholders. Mutual partnership between the firm and stakeholders focuses on critical issues which are social, financial and environmental in nature. Sustainable leadership stand at this intersection where culture and brand prevails. Leaders must possess the ability and comprehension to lead stakeholders and respond to concerns such as social, financial and environmental issues. Introduction Organisational leadership crafts vision, goals and objectives to guide the firm. In this context, a leader influences the others to act collectively with a view of making things happen amidst immense changes and challenges. The principle of sustainable leadership entails comprehension of interrelations between systems, business transformation, nature protection, future aspirations and leading by example. This paper focuses on organisational development and behaviours that calls for sustainable leadership. The paper also discusses theories that influence leadership as well as concepts of eco-leadership in Unilever. Organisation Development, Organisation Behaviour and Leadership In a bid to ascertain the best and sustainable leadership to employ in an organization, it is paramount to put into account three important factors; these are organisation development, organisation behaviour and overall leadership (Beer 1980, p. 80). Organisation development can be defined as a well articulated and systematic approach adopted by a firm with an aim of improving the firm’s effectiveness. The approach must be in a way that aligns to the business strategy, people as well as processes. In order to obtain the desired level of performance as well as competitive advantage, it is quite inevitable for the firm to undergo significant change (Cummings & Worley 2005, p. 112). Organisation behaviour delves more on the interrelationship exhibited by people within a firm particularly through teams. This has been an ongoing study aimed at creating a more efficient and effective business organisations. The key idea of organisational behaviour is to embrace scientific approach in the overall management of workers (McCann & Sweet 2014, p. 375). Today’s world has experienced an increase in population, high advancement in technology, increased demand of products as well as changes in tastes and preferences, a boost in transport and communication means as well as global interrelations (Flamholtz & Brzezinski 2016, p. 18). The resultant effect of these factors is an emergence of businesses with complex environment and constant change. In order to cater to the complexity and the ever evolving business variations, business effectiveness has to be there. Thus, business effectiveness necessitate managers to leverage as well as have personal traits, capacities, skills and mindsets to facilitate flexible cum dynamic work practises within a loosely structured, cross-cultural as well as cross-disciplinary teams. Different theories show casing complexities within the business environment have been developed. According to theories, the intervention of an external manager may not be fully sufficient in regard to countering the challenges inherent in complex and the ever changing environments. However, successes of dealing with such environment would be bestowed on thorough comprehension, strengths and capability geared at facilitating mutual interaction between organisation’s stakeholders (Nelson and Quick 2006, p. 54). Resource Based View of an Organisation A firm will never operate in absence of resources. While considering organisational development and sustainable leadership, the availability of resources must be put into consideration. In the short-term, the organisations competitiveness was far much based on the quality and pricing of products. However, in order for an organisation like Unilever to thrive in a complex and fast changing environment in the long-run, there is a need for continued use of resources. Generally, it is the responsibility of the management to foster social as well as technical competencies within the stipulated timeline aimed at achieving the needs of new and shifting markets. The Resource Based View theory has been widely used as a key framework entailing what constitute major resource mixes required for generating as well as maintaining firm’s competitive advantage (Wilson 2013, p. 30). The Resource Based View theory advocates thorough comprehension of the firm’s capacity to respond to evolving challenges and the opportunities. One of the most important features of the theory is its recognition of the organisation’s dynamic capabilities that are based on her unique, emergent as well as innovative resource mobilisation. Moreover, there is always a need for stakeholders’ collaboration in creating a unique and strong resource advantages that are free to imitate. The approaches suggest that for an organisation to be able to adopt such changes, it must embrace a culture of change readiness. This is only fostered by trusted organisational leadership with collective goals and adequate resources to deal with high change environments (Schilling & Steensma 2001, p. 1155). Organisational Culture in a dynamic environment One of the most crucial fundamental roles related to leadership in the ability to manage change. Leadership is more concerned with guiding the team through an impending shifting environment. Sustainable leadership should determine transformational pace as one of the main ingredients of change management. Internal factors determine the magnitude of transformational pace. Leadership will check on the internal measures within the firm affecting the change process. This includes the level of experience of the employees, the history of change, resources available as well as how fast the intended change is needed (Alvesson & Sveningsson 2015, p. 87). Effective leadership should measure the magnitude of change based on both internal and external factors. Moreover, leaders should ascertain the competitive level of the firm. For instance, internal measures assists in assessing the need for team development, the level of communication within the team and how fast a team can adopt change (Glisson 2015, p .247). There is also a need for the management to constantly consider the external factors which will influence organisational change. Leadership should therefore find out what the competitors are doing, how the future look like as well as who are the potential competitors. This comprehension is normally based on experiences, skills and capabilities of knowing what the future bestows and how the firm will be affected. The information is derived from literature, communicating to external stakeholders as well as analysing the data. This calls for consideration of numerous scenarios and then developing strategies to guide the firm to achieved the desired results via various assumptions (Alvesson & Sveningsson 2015, p. 98). The ability of the firm to obtain the results in the long-run and amidst change is more emphasized through resource based theory. According to the theory the culture of the firm should yield value via incorporation of economic, environmental as well as social dimensions in the main business decisions. This is always referred to as corporate sustainability. Corporate sustainability emphasise on the efficient use of the firm’s resources to generate wealth which eventually leads to a healthy economy, society as well as natural environment (Zaccaro, Foti & Kenny 1991, p. 312). The achievement of the aforementioned goals demands contribution of the firm. In fact, this has well been illustrated by history. However, in the recent times, there has been a widespread support to a more collaborative, involving, multicultural as well as diversity-sensitive approaches towards business participation aimed at achieving the main goals. The underlying developments has also emphasized on the need to develop leadership and managerial professionalism which cope with both complexity and dynamism. The resultant leadership should collaborate well with the diverse number of organisational stakeholders (Hogan & Coote 2014, p. 1617). Ineffective Management in a fast changing Environment Company values and culture stipulates alignment between managers’ altitudes in managing resources particularly natural and people based. This shows accountability levels that must be exhibited by the leaders. The main focus herein entails accountability level that should be embraced in respect to negative externalities resulting from ineffective management of people especially in a fast changing environment. In actual terms, the occurrence of such externalities revolves around community health, skill depletion and the general welfare (Bass 1985, p. 27). An environment where culture is embraced to deal with negative externalities requires the following; first, innovative ways of leadership geared at dealing with complexity as well as people management in the ever changing context. Secondly, a firm should come up with new mindset as well as skills regarding people-management supporting the intense process of social-capital building. Thirdly, diversity management should be recognised as part of risk towards sustainable business practice. The diverse culture of a number of successful firms has been exercised on compliance approach. The approach is associated with non-discrimination via Equal Employment Opportunities. This has led to development of diverse skills and widespread of benefit across all levels of employee and thus creating a conducive workplace responsible for meeting stakeholders needs (Tideman, Arts & Zandee 2013, p. 19). Management of Business Environment The rising complexity and change variations within the organisational circles put into focus the ability and capability of people to manage as well as process the changes. Such business variations call for a steadfast decision-making process. The decisions made require implementation within a fast and competitive ecosystem geared at meeting stakeholders’ interests (Bennett & Lemoine 2014, p. 315). There are critical organisational variables inherent in dealing with such advanced changes. This includes leadership as well as management practices which facilitate and develop the following; First, human capability as well as motivation. This should be done to individuals, groups and teams in order to respond to such frequently changing needs. Secondly, there should be a culture that supports both individuals and group to harness their innovation, project management, net-working and prompt response to stakeholders’ interests. Thirdly, there should be resilient as well as coping behaviours that deal with typical shifts in the business circles. Fourthly, there should be learning cum reflective behaviours supporting groups to gain influence from different personalities as well as from skill sets and experiences exhibited. Fifth, there should be organisational communication as well as communication systems which support decision-making process, options and diverse alternatives that facilitate strategy-implementation as well as adaptations to complex business environs (Adler, Baets & Konig 2011, p. 163). Just like a human person, organisations are prone to challenges throughout their ‘lifespan’. According to Peter Drucker, there are future challenges that will continue to face organisational leaders and managers. This includes the following; 1. The impact of demographics – this is a situation where old workers work far beyond their retirement ages. 2. Strategic goals of the organisations will be based on global competitiveness rather the domestic market. 3. The global markets will be highly considered at the expense of the domestic market. 4. The future business world will experience widespread alliances, partnership as well as joint ventures ideal for successful competition. 5. There will be firm’s decentralisation requiring team development within an increasingly doubtful market. 6. There will be an increase in number of knowledgeable employees that will call for autonomy and who will prosper on continuous learning process. 7. The continual change will become the norm. This means that the management will advocate change as an opportunity and not a threat. 8. There will be a development of knowledge societies within the developed countries. This will consist of business, the government as well as the private sector (Lin and Wu 2014, p. 411). In the present business-world these challenges are present and are directly affected by the need to have a more developed human person. The business mergers and alliances is necessitated by the need to set directions, obtain lacking knowledge as well as growing need to foster thorough comprehension around challenges and solution among the stakeholders (Benn & Bolton 2011, p. 45). Leadership Models and Theories in a Changing Environment According to Forbes, leaders are responsible of building relationships. Leadership focuses on people. These are the stakeholders who assists them achieve their vision. Leaders lay more emphasis on who are the stakeholders and hence dedicate their time in meeting their needs. On the other hand, managers have group of people working for them. A manager is responsible of coming up with systems and processes. This shows a distinction between leadership and management. However, a successful leader must assume the qualities and traits of a manager in order to have influence. The role of a leader towards change is paramount particularly to today’s ever changing business world (Akbari & Land 2005, p. 87). According to research, successful leadership is associated with unique traits. The leadership traits describe leaders as being honest, bright, and confident and with vigour. Moreover, the leaders are described as ones who fully understand the situation they want to control or change. Such observed leadership have a direct connection to leadership traits. However, the traits are not the sole determinant of leadership behaviours. Leaders must be in a position to fulfil the requirements of the assigned tasks (Peters 2015, p. 15). Contingency Theory The exploration of leadership led to the development of theories. The theories focused on task-related behaviours as well as people-related behaviours. Nevertheless, it is important to note that neither traits nor leadership behaviours were adequate to describe effective leadership. This is because traits may dictate certain individual preferences but may fail to fully explain adoption of stipulated behaviours. On the other hand the behavioural theories may fail to put into account contextual factors with an example of cultural constraints and circumstances (Shaw, Park & Kim 2013, p. 576). Contingency theory perceives leadership as being task-related and or people-related and therefore very hard to influence depending on how a leader relates with his members as well as position power. Alternatively, leaders should have high comprehension of the disposition and possess skills to vary situations in order to succeed (Latham 2014, p. 55). Path-goal theory Path-goal theory perceives leadership as the one that motivates the employees through reward-mechanisms when the stipulated goals are obtained. In this context, the leaders offer support to staff to attain the goals through setting motivating tasks assignments as well as getting lid of impediments to easily attain the set objectives (Alanazi, Alharthey & Rasli 2013, p. 36). Transformative Leadership Transformative leadership emphasize on two leadership aspects; that is, transactional and transformational aspect. In transactional leadership, a leader conducts a deal via relationships that enable change. On the other hand, in transformational leadership a leader inspires or gives hope by re-setting future course and leading by example into the future (Holmberg 2014, p. 66). Transformational leadership is coupled by the following features; first, the leader must be charismatic in which he assumes and uses power effectively. Secondly, a leader must be able to exercise individual consideration. This recognises unique differences in his followers’ skills, abilities as well as desire to growth. Thirdly, the leader must have thorough knowledge, skills and abilities to induce change required within the organisation. Such leadership should change the perception of the subordinates, beliefs as well as instil values and problem solves (Geparth, Savall, Zardet & Bonnet 2014, p. 17). Transformational and transactional leadership must instil motivation that inspires followers. Moreover, such leadership should lead by example. The leaders should uphold ethical behaviour in order to command respect and trust of the employees. Charismatic Leadership Charismatic leadership tend to understand the extent of charisma exhibited by followers in terms of performance, trust as well as loyalty. Charismatic leaders encourage the followers to perform or conduct themselves in a certain way. They inspire their followers to perform better. This is achieved by instilling enthusiasm for a stated objective or vision (Avolio & Yammarino 2013, p. 127). Leadership – Member Exchange theory This theory focuses on the interrelationship between the leader and the followers. In this case, mutual desires for the parties in taken into consideration. High profiled exchange relationships are termed are the ones possessing optimal level of trust, respect as well as obligations. High exchange relationships in teams reduce conflicts amongst the followers and the leader (By & Burnes 2013, p. 13). Eco-leadership The main challenge that faces Unilever is to realise connectivity and interdependence. In order to be successful, Unilever should liberate creativity as well as distribute leadership. In addition, the organization should properly address issues pertaining to social-responsibility and sustainability (Liu 2015, p. 22). According to the company’s CEO Mr. Paul Polman, the sustainable living plan of Unilever is based on radical attempt of such a size as well as impact, to come up with a long-term plan which addresses environmental sustainability while at the same time protecting social interests. The CEO asserted that people are on the opinion that firms spend more by doing what is right. That is contrary to the truth since doing the right thing ignites innovation as well as lower costs. The Company’s sustainability is compelling. Customers and retailers demand it as it ignites product innovation. Moreover it is used as an avenue of growing global markets and saves money. The four qualities of eco-leadership includes the following; connectivity, systematic ethics, leadership spirit and organizational belonging. Connectivity - eco-leadership derives it foundation from connectivity. This entails full recognition of the network society as well as the firm’s interdependence with the surrounding environment. The core activity of eco-leadership is to address the relationship between the organization and the network (Stacey & Griffin 2005, p. 57). Systematic Ethics - in the context, eco-leadership advocates acting ethically within human realm whilst protecting the natural environment. The leadership addresses systematic as well as structural ethical issues which are beyond the firm’s values and leadership-morality (Miles 2013, p. 210). Leadership Spirit - eco-leadership recognises human spirit. The values of eco-leadership go beyond material gains. It put into consideration mythos and logos, creativity, innovation, imagination and interrelations. It is greatly concerned with human relationships as well as interrelationship between humans and the environment (Shields 2014, p. 328). Organizational Belonging – eco-leaders locate, choose and commit their firms to place and space where they belong. They strive to develop relationship ties. In this context, space constitutes local habitat as well as the community. Space refers to the network and the global flows that the organization inhabits. Belonging is to partake in both the joys as well as challenges that are pertinent in the environment and to assume responsibility. Eco-leadership Discourse Eco-leadership is the new response to prevailing complex, global, interdependent as well as digitalized firms. Information Technology acts as the organization mirror. Presently, organizations work within vast networked and virtual spaces. There is an emergence of new form of operations that calls for fresh form of leadership (McKimm & O’Sullivan 2015, p. 269). The organization metaphor shifts from machine focus. This demand obtaining leadership tools, diagnosing and fixing a challenge and maximising efficiency in the ecosystem where leaders strive to perform their roles within interdependent arrangements of connecting networks (Conger & Hooijberg 2014, p. 47). Organizational eco-systems put together technology, people, machines, virtual and real space, texts, systems and processes as well as the natural environment. It is the duty of eco-leaders to think spatially whilst working across the networks to make an influence rather than exert a top-down control. Eco-leaders must create connections as well as spaces which act as an encouraging factor. They should take a leading role, use talent and creativity to deal with firm’s complexity (Cletzer 2016, p. 71). Connectivity, Interdependence and Ethics Eco-leadership focuses on both internal and external organizational ecosystem. The leaders build networks, bridges, silos as well as create organizational architectures which encourage leadership to thrive. Edge leadership entails shifting knowledge and creativity into the centre or core of the business. This creates adaptive organizations that easily deal with any emerging change (Goswami, Li, Beehr & Goffnett 2014, p. 11888). Eco-leadership focuses more on the external environment. This includes stakeholders, competitors, and the political and environmental tendency. This ensures that the firm is able to deal with changes in the external circles. Eco-leadership is guided by ethics social-responsibility as well as sustainability. This cares for people and the natural environment. Eco-business ensures that ethical stance is embraced. This is not only humane but also good for the firm’s performance. 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