Leadership in the New Era - Coursework Example

Leadership in the New Era

Introduction

The highly globalised world has resulted in more sophisticated consumers, increased mobility of labor force and stiff competition in both local and international environments. Never has the role of leadership and management received more attention than in today’s business environment. As companies recognise the rapidly changing and complex environment, they observe that it is no longer sufficient to make incremental changes and that there is a need to transition the supervisors, workers and management to leadership roles to encourage subordinates and co-workers to be more accountable over their actions (Seteroff 2003:19). This is often very challenging in companies with a high bureaucracy, consisting of a steep cultural framework. Currently, the leadership dilemma involves how to motivate the highly diverse workforce at all levels for the purposes of improving processes and ensuring the success of the organisation in the highly competitive markets. Firms are beginning to recognise the need for situational application of a mix of management application and leadership theory. Also, organisations are taking steps to cross-train the workforce to support matrix organisations and other ‘soft’ management approaches such as mentorship for the purpose of improving the overall performance of the organisation. Organisations, taken as single entities, are viewed as being capable of learning. Therefore, when management takes on a leadership approach to achieve cooperation workforce and to aid the firm in adapting to the changes, then the organisation increases its chances of remaining in a successful competitive position.

Grave’s Value System Theory

The highly competitive environment calls for managers to become adaptive and to shift to adaptive leadership to enable the firm to withstand the external threats in the environment. The adaptive manager needs to be updated concerning the changes in the market (Seteroff2003:20). Also, the manager should be ready to incorporate latest technologies and techniques to existing processes. The adaptive leader must broaden their horizon beyond the industry in which the organisation is positioned and seek to adapt actionable academic research as well as borrow from other fields to remain competitive. The present challenge that organisations grapple with is on how to achieve the management-leadership balance that is needed in the organisation. Whereas Grave’s value system theory is not known, it is one of the frameworks that seek to guide organisations on how to invest on human capital to ensure that they remain competitive. Grave’s value system has been in operation in various disciplines such as politics, economic development and health. The theory argues that there are patterns of human thought that react to major events, for example, the information age. These patterns develop into currents that flow within cultures thereby influencing how one perceives various factors such as business, the family or their very existence. The theory describes ways of conceptualising reality that are evident in history and continue to re-emerge. The theory argues that one should relax when faced with a crisis and should avoid favouritism when selecting specific models for leadership and organisation.

Capable managers are able to use implicit theories on a daily basis to realise their goals. When this is done exceptionally well, the managers are identified as charismatic leaders. According to Grave’s value system theory, every human being has a value system that influences their behaviours, including their response in the organisation. The theory identifies eight levels of human existence. The first level is the reactive level in which the individual is dependent on outside support for survival and exhibits an inwardly pointing worldview of the environment (Vievolve 2016). This level is only seen in children and individuals with degenerative conditions such as Alzheimer’s. The second level is the tribal level in which the individual follows a strong leader or symbol (Vievolve 2016). In today’s society, this level is evident in some family units, football supporters and in highly competitive corporate teams. The third level is the egocentric level that tends to be individualistic. The core values in this level include immediate gratification, power and avoiding shame. The next level is the absolutist level which is a strong community level approach. The absolutist level has a strong level of right versus wrong and tends to advocate for order. In cultural terms, the judicial level develops at this level as its core values include justice, security and morality (Vievolve 2016). The materialist level is another individualistic level that exhibits strong personal drive. This level is very aspirational and responds well to the motivation to succeed. The materialist level is upwardly mobile and enjoys success (Vievolve 2016). The sixth level identified by Grave is the personalistic model that focuses on involvement and gaining consensus. The personalistic model consists of core values such as fairness, equality and freedom from exploitation. This level seeks peace with the inner self and with others in the society. The seventh level is systemic and tends to see the world as facing imminent danger (Vievolve 2016). The major driving force in this level is the pursuit for knowledge. The eighth level is holistic and sees the world as being in danger of geo-political collapse. This approach strives to eliminate war, poverty and hunger and recognises the need to sacrifice self and others for the overall survival.

The systems theory argues that all human beings have beliefs, values, dreams and aspirations. The value system governing an individual is a dominant factor that influences how they respond to certain life conditions. In the organisation setting, a manager may respond to an external threat based on their value systems, beliefs or intuition (Burke et al 2012:2). According to Graves, an individual’s ability to influence the next level depends on their personal willingness and flexibility. More evolved levels such as the systemic levels can aid their teams in moving to a higher level that can help an organisation to adapt to the conditions in the environment (Vievolve 2016). There is no level that is superior to the other and each level provides the frameworks that enable an individual to meet their needs. Some levels are individually oriented such as the egocentric level whereas others are more community oriented such as the absolutist level. Management needs to recognise the different levels at work within an organisation and should adjust their approach for purposes of establishing a rapport with the individuals working on every level (Vievolve 2016). According to Graves, individuals opt for a higher level is they feel that their current level does not provide the answers that they need to face a current life condition. Also, factors such as tension and stress can influence an individual to go back to their earlier level. For example, individuals in the level blue (absolutist) view people in the level purple (tribal) as being in need of saving. The blue sees the red (egocentric) as bad and identifies the orange (materialist) as being arrogant.

Leadership Styles & Behaviours

There are various leadership styles and behaviours that organisations utilise. There is situational leadership that is based on the diagnosis of forces facing a particular organisation and the leadership style that fits that organisation (Bertocci 2009:41). Situational theories focus on interactions among the subordinates, leaders and forces within the organisation. There are four situational leadership models that are considered such as the path-goal model of leadership (Bertocci 2009:41). This approach argues that leaders can increase their effectiveness by utilising the task-reward techniques. The leaders must identify each motivational need of the workforce to be able to utilise the task-reward technique effectively. Also, effective leaders should clearly communicate the path or behaviour best suited for the firm and what actions the employees must complete to receive their rewards (Bertocci 2009:41). Organisations succeed or fail depending on the type of leadership in place. Appropriate leadership can be influenced by culture, for example, in a society where that believes in the basic goodness of human beings, participative management can be an effective approach (Punnett 2015:24). Hierarchical societies are likely to consist of authoritative leadership styles in the organisation structure.

Different cultures have diverse concepts of leadership. Leaders can be born, elected or trained. Leadership can be autocratic, democratic, collective or individual (Punnett 2015:24). In the HSBC Bank Oman, the leadership style and management of the organisation is more diplomatic. Leadership adhere to traditions which limit the organisation. Management in HSBC is casual, helpful, willing to compromise and fair (Ahlstrom & Bruton 2009:130). However, management can also be ruthless. HSBC’s history is based on survival as it was one of the first banks in China (and Asia) prior to the communist revolution. After losing its major market in China, the bank aggressively expanded its operations to other regions around the world including Oman. HSBC organises itself into five major geographic regions with five key lines of business such as corporate investment banking, private banking and other activities (Ahlstrom & Bruton 2009:130). The firm adheres to a modified global strategy, meaning that it allows some variations in its actions to suite the national culture of the region its operating (Ahlstrom & Bruton 2009:130). However, there are certain standards that the firm adheres to.

HSBC Group corporate culture is shared and shaped in various regions around the world by about 312,000 employees. The culture emphasises bottom-line concepts, for example, outstanding customer service (Pride et al 2009:205). Furthermore, the company communicates on the need to get involved in societal issues such as climate change and environmental concerns. In HSBC, employees know that they will receive their regular pay while they volunteer in local environmental projects (Pride et al 2009:205). The company has a strong, positive, corporate culture that seeks to enhance employees’ loyalty and the resultant success of the organisation. Personal values can significantly affect leaders. This is because values shape decision and behaviour and are a method of creating value. HSBC is a UK based company and therefore the national culture of the leaders significantly affects their coping skills in the face of life’s conditions. In today’s technological era, leadership is based on green intelligence that is level five of the value system structure. The degree of complexity in the environment is governed by digital technology. The coming mechanisms for leadership involve responding to human needs, developing self-managing teams and meeting the corporate social responsibilities of the firm. The organisation consists of Social/Communitarian Network Systems and seeks to liberate the societies from greed and dogma. The green MEME is the outcome of the success or failures of the five MEME’s that have dominated until the last century (The Spiral 260). Green exists when blue and green complete their lifecycles.

HSBC can be categorised as Orange/Green based on the value system theory. The organisation is currently shifting from orange to green. In orange, the firm’s leadership focuses on achievement. Whereas the orange/green is still entrepreneurial, the leadership finds itself unwilling to fully commit to green. At this stage, the risks are taken on the basis of capital and other concepts but not on feelings (The Spiral 262). Leadership has already experienced the materialistic phase and finds it wanting. Therefore, the organisation gets involved in ecological and societal movements for the success and prosperity of the group. Factors such as gender equality are a fact and the workplace is team-oriented (The Spiral 262). The organisation shares a common vision, a factor that leaves the organisation vulnerable to collective guilt. However, the green approach makes the company more empathetic to the needs of the customer thereby enhancing great customer relations (The Spiral 267). Green believes in diversity and therefore focuses on bringing people together so long as they are willing to share a common experience (The Spiral 268). As green intensifies, it seeks to categorise people on the basis of shared responsibilities rather than on hierarchies. In this case, individuals benefit through the elevation of the group as a whole

The GREEN Intelligence Organization Framework

In HSBC, the organisation utilises casual leadership. This approach is a transformation from the authoritative structure that was present in the information era. The present life conditions involve high technological advancements, globalisation, intense competition and increasing demand for value. The command-control approach in management has become less and less viable and the top-down leadership model less competent. In the present environment, the traditional communication strategies in organisations have paved the way for a more conversational approach (Groysberg & Slind 2012). Leadership in the new era seeks to have a conversation with the workforce and to establish practices and cultural norms that promote a conversational capability throughout the organisation (Groysberg & Slind 2012).

Leadership Issues in an Organisation

Competitive pressures rising in every part of the globe is a major challenge facing organisations. Companies operate on a global economy; therefore, organisations are exposed to various external forces that can significantly affect their operation. The situational leadership theory argues that any situation plays a significant role in determining the leadership qualities and the leader for that situation (Northouse 2010:46). Based on the theory, the leader qualities of an individual are themselves the product of a previous situation that defined them as individuals. In contrast to previous theories such as the Great men and Trait theory, situational theory, human progress is unconnected to great individuals. The leaders appear at critical moments and devote themselves to aiding the organisation. According to the theory, leaders emerged and developed as a result of social, cultural and economic conditions.

Situational leadership theory approach is based on the idea that employees move forward and backward along the developmental continuum, which includes the relative competence and commitment of subordinates. For leaders to be effective, they need to identify where subordinates are on the development continuum and adapt their leadership styles to mirror the developmental level of the subordinates (Northouse 2010:93). In a given situation, the leader is expected to determine the nature of the situation and the level of expertise that employees have in solving the situation. Once the leader identifies the developmental level of the subordinates, then he/she should adjust their leadership approach to meet the development level of the followers. The leader should adapt their styles to the prescribed styles depicted in the model below. According to the theory, there is a one-on-one relationship between the development level of subordinates and the leader’s style, for example, if the subordinates exist at level (D1), then the leader should have a high directive/low supportive leadership style (Northouse 2010:93). The situational approach is a practical and credible approach to leadership. The model is frequently used by training leaders. However, the model lacks a strong body of research to support its theoretical basis.

The situational approach in leadership is presented in the Blanchard (1985) model called the situational leadership II model. The dynamics of situational leadership are best understood when the model is separated into two parts: leadership style and development level of subordinates (Northouse 2010:90). The model relates to the amount of direction and control (directive behaviour) exhibited by the leader and the supportive behaviour that the leader provides (Northouse 2010:91). The model also includes competence and commitment of a follower in a given task. When engaging in a one-way communication, the leader uses directive behaviour to inform the follower concerning their role and duty while providing close supervision. The leader uses supportive behaviour to engage with the followers while providing support and encouragement (Northouse 2010:91). The development level of the follower consists of the followers’ job knowledge and skills and level of commitment. The more competent and committed a follower is the more responsible they are at directing their behaviour.

Situational leadership theory identifies four leadership styles that can be utilised depending on the situation. The styles include Directing (S1), which is located at the high directive/low supportive behaviour. At this stage, the leader provides specific instructions to the follower and strictly supervises the follower. The second leadership style is coaching (S2). Coaching exists in the high directive/high supportive behaviour level in which the leader explains their decision and is open to suggestions from the followers. The supporting leadership style (S3), exhibits high supportive/low directive behaviour. The leader interacts with the followers and makes decisions together with the followers. The leader also supports the follower towards task accomplishment. The delegating leadership style (S4), exhibits low supportive/low directive behaviour. At this stage, the leader places the decision-making responsibility to the follower (Northouse 2010:92).

HighSituational Leadership Model II (Northouse 2010:90)

Low Directive Behavior High

High

Moderate

Low

D4

D3 D2

D1

Developed Developing

Based on the value system theory, leadership tends to adapt to the conditions in the environment. The current issue in the environment involves intense competition. There is increasing demand for organisations to meet the expectations of the current and future customer. Also, the banking industry is under constant threat of new regulations. Competition from both local and foreign banks that have saturated the market coupled with the continuing volatility and uncertainty characteristic in the industry leaves the organisation under a constant threat to change. The organisation can be described as existing at the orange level while constantly transforming to green. At the orange level, the organisation faces challenges such as the constraints presented by rules and regulations (Memenomics56). Orange acknowledges the role of technology and seeks to utilise this technology to its advantage. Therefore, changeability of technology and innovation are the hallmark of this MEME. Once orange has achieved its goals and material fulfilment, it seeks to achieve internal fulfilment through social contributions (Memenomics59). Orange seeks to establish a bond with its human element and therefore seeks a more confrontational leadership to tackle the issues in the environment.

Leadership in the 21st Century

The present challenges in the environment demand for more effective leaders who will aid the organisation in transition and in adapting to the complexities in the market. Currently, there is no general consensus concerning the term leadership and scholars from various disciplines have come up with their own definitions. Recent research yielded more than 750 definitions of the term within the past 75 years (Bertocci2009:5). Although leadership is difficult to describe, it is easy to recognise. For example, in the present environment, key people such as Nelson Mandela have been identified as contemporary leaders as they exhibit the attributes and behaviours that are identified as leadership skills. Webster’s New World dictionary defines leadership as “The position or guidance of a leader and the ability to lead” (Bertocci2009:5). The definitions of leadership have been constructed within the frameworks of theory, for example, the great man theory identifies leaders and influential individuals who are naturally born leaders and exhibit great personal charisma, intelligence, wisdom or political skill. The trait theory of leadership identifies leaders as individuals who possess core traits that make them effective leaders such as the achievement drive, self-confidence and motivation (Bertocci 2009:19).

Current theories such as the transformational leadership theory identify leaders as individuals who empower followers to engage in pursuing a collective purpose. According to Burns (1978), leaders and followers should raise one another to higher levels of motivation and morality (Bertocci 2009:49). A key point to note is that the definition of leadership is constantly evolving. Also, in all definitions, leaders are identified as agents of change and exhibit some form of influence over the followers. From my perspective, a leader is an individual with a unique character, personality traits and ability that makes them effective at compelling others to achieve a collective goal. Leadership values can be developed through training and experience and its effectiveness depends on the relationship between leaders and followers and the circumstance involved (Bertocci 2009:7). Based on the value systems theory, a leader responds to the changes in the environment based on their personal value systems. The theory argues that leaders should not be reactive to change but rather, they should anticipate change. Also, the leader is expected to engage in team building and should identify that different MEME’s exist in the organisation. In the present environment, leaders need to understand that the environment consists of multiple futures and realities and only ‘spiral leaders,’ can effectively lead their organisations in the constantly changing environment.