The Impact Of Globalization cheapassignment help
Technology has greatly influenced how organizations do their business. The introduction of cheap telecommunication technologies and development of faster and cheaper transport systems has led to a sharp increase in multinational investment. This is because multinational organizations are able to easily monitor performance and co-r-ordinate the functions of branches spread over different countries. However, Gatignon & Kimberly ( n.d) noted that though immense opportunities lie in the global market, challenges and risks abound in equal measure. In addition, Gatignon & Kimberly (n.d) stated that:
Unlike government leaders who have a choice on whether to venture into global markets, business leaders do not have that luxury. Good, competitive business leaders recognize that the global market is one big stage, and they are the main actors. In addition, business organizations have a responsibility to build economies through multinational trade. They have a responsibility to produce goods or provide services that suit customers’ needs. In doing this, organizations must ensure a sustainable exploitation of resources as well as sustainable economic development.
Gatignon & Kimberly also noted that business leaders are faced with the challenge of managing widely spread enterprises operating in different countries with differing business environments. In addition, venturing into international markets requires restructuring an organization’s supply chain and better evaluation of financial and geopolitical risks. (p. 1)
We can, therefore, deduce that despite the many risks and challenges, organizations have no option but to venture in global markets in order to remain competitive. In that case, it is the duty of an organization’s leadership to ensure that strategies to counter these risks and challenges are put in place. According to PricewaterhouseCoopers (2008):
To achieve success, an organization must be structured such that is flexible, easily adaptable to change, more networked as well as being less hierarchal. (p. 6) This restructuring is the duty of its leaders who must have the ability to foresee changes in business environments, show authenticity in leadership and encourage social responsibility. (p. 22)
To survive in the existing and future global environments, leaders must align their style of leadership such that it fits into the demands of the existing business environment. In fact, despite the differing opinions on leadership, there exists a common stand that approaches to leadership have been changing over the years. Traditionally, leadership was associated with control and command. The days of rigid bureaucracy where the status quo was the order of the day in organizations are being overtaken by a new approach of leadership which is seen to be democratic and where leaders and junior staff belong to a team.
In fact, Bratton, Nelson, & Grint (2005) noted that terms like subordinate and junior employees are being replaced by friendlier ones like team member or associate. This rapid change is being fuelled by globalization, which has brought with it new challenges. Leaders have to make tough choices on not only how to do business, but also with whom. Globalization has increased business opportunities for organizations. Nowadays, businesses can explore international markets as well as source for cheaper resources.
However, globalization has also created competition for skilled labor as well as unique talents. Organizations poach for these talents all over the world to enhance their performance. For this reason, it is easier to replace non-performing individuals with talented and creative ones. A leader in a particular organization can, therefore, only choose between performing and quitting. With globalization, change is happening very fast and as such, leaders have to adapt quickly so as to remain relevant. Indeed, agility has been identified as an essential quality for leaders in the prevailing global business environment.
What this means is that those leaders who have the ability to foresee changes in the business environment and create efficient strategies to counter these changes have a better chance of succeeding (PricewaterhouseCoopers, 2008). In addition, globalization is creating a need for leaders to be authentic in developing strategies. They must be able to create clear visions and make their followers part of these visions. In the existing environment where numerous challenges exist, leaders must exude boldness and be able to withstand pressure by taking firm stands.
As opposed to the traditional dictatorial style of leadership, it is being realized that the best way to keep an organization moving forward is by leaders building trust with their associates as well as showing confidence in them. It is also imperative that an organization’s leadership maintains frequent, genuine and clear communication with the rest of the team. Due to the fact that globalization has led to a decline in the pool of unique talents and skilled labor, leaders are now seeing the need to use their employees’ abilities in the best way possible. As opposed to the previous leadership style of control and command, leaders are know taking time to study employees as well as liaise with them in the quest to fit them in roles in which they are best suited.
This strategy and new approach by leaders is proving very effective in promoting growth. As noted by Bratton, Nelson, & Grint (2005), this strategy has been used by the popular chairman of the Virgin Group, Richard Branson, who has led the organization since 1973, making it one of the most respected brands in the world. Richard Branson has been able to achieve this by utilizing the talents of his managers. Bratton, Nelson, & Grint (2005) stated that:
Richard Branson manages his vast business conglomerate remotely from his private boat, by using modern telecommunication technologies to keep contact with managers located in different buildings across London. According to Branson, this gives the managers independence in making decisions regarding the projects he assigns to them. This way, Branson is able to make the best use of their talents. (p. 4)
Finally, globalization has further increased the demand for sustainability. In addition to looking at the best way to utilize resources available within the organization, leaders also need to be concerned with how organizations exploit natural resources and the impact of their activities on the environment. The days where organizations were only concerned with reaping maximum profits with little care for the impact of their activities are long gone. The current business environment demands social responsibility from an organization. In fact, customers are nowadays very concerned with an organization’s social responsibility.
Similarly, employees are getting more concerned with an organization’s social responsibility. PricewaterhouseCoopers (2008, p. 16) noted that when applying for jobs, employees will look out for companies which value their services. This is determined by how well a company trains, develops, deploys and remunerates employees. To be successful, leaders must balance profit making with social responsibilities like philanthropy, sustainable exploitation of resources and environmental conservation, if at all they are focused on building strong brands (Gitsham, Wackrill, Baxter, & Pegg, 2012).
In an attempt to fit into the current description of leadership, some managers may realize that behavior change may need to go hand in hand with a change in organizational culture. However, such changes may not always be welcome as some people within an organization may resist change in favor of established ways. For that reason, it is important that leaders understand the nature of change, its purpose and ways of managing the effects of change. It is the duty of an organization’s leadership to properly manage change or transitions. This can only be done by introducing change gradually while making other employees understand the need for change as well as helping them understand and be part of visions.
- With reference to the readings for this unit, profile the leadership and communication styles of a global or national leader you admire.
As stated earlier, Yukl (2002) defined leadership as the process of making people understand what should be done, how to do it effectively as well as facilitating their efforts with the view of achieving shared objectives. However, many leaders fail to recognize this, leading to their complete failure. While a poor leader while take an organization to higher heights of success, a bad leader only pulls down an organization, sometimes bringing it to its knees. Good leaders are good at team building and lead by example. They are examples of good morals and integrity in addition to being fair. Bad leadership on the other hand is characterized by lack of consultation, which leads to making of poor and rushed decisions. Bad leaders also often desire to get credit for success.
For this reason, they will want to make all the decisions and be in charge of any given work. While good leadership is characterized by constant, clear and honest communication while bad leadership is characterized with the exact opposite of that. In other words, there is a lot of bureaucracy and no sense of employees being a team. With bad leadership, employees become disoriented because they lack space for growth and development. They also lack a purpose or goal because in most cases, they do not understand nor own a leader’s vision. Instead of working towards achieving a set objective, some will try to sabotage a bad leader’s ideas in an act of rebellion.
To be a good and effective leader, one must allow his followers to explore their talents. Sharing ideas and visions and making others understand them is crucial for the success of a leader and an organization for that matter. By allowing employees to enjoy some degree of freedom in making decisions, a leader is able to utilize the unique talents they posses. Such leadership, which offers motivation to develop as well as work independently towards a common organizational objective, is the epitome of good, effective leadership.