Globalization Effects on Leadership, Changing Global Market Factors - Coursework Example

Globalization Effects on Leadership Name: Institution: Date: Introduction Globalization has had a share of great implications across the globe and nations. In this case, it has affected and implicated on the ways individuals relate with each other, nations interact, business conduct their operations as well as on how nations and businesses are led. This is especially based on the fundamental changes in structures and operational basis that increased globalization has caused across the world market. One of the most distinct and visible implications of globalization is the emergence of multinational organisations. Traditionally, as Pendse and Choubey (2006) stated, organisations served in their traditional domestic markets often within a limited geographical area or region. As such, challenges in communication transfer, transportation and cultural diversities made expansion onto global regions a difficult and impossible ordeal for many business ventures. However, with increased globalization, this phenomenon changed. Today, as evidenced by a series of emerging and growing multinational organisations, geographical or cultural differences no longer hinder business development. However, this growth has caused a drastic change on leadership approaches applied by organizational managers across the globe. This essay develops an analysis of these leadership style and approaches changes in the light of increased globalization and multinational ventures expansion. Changing Global Market Factors The global market is changing. In this regard, in order to evaluate aspects and areas through which globalization is changing, Bensoussan and Fleisher (2013) recommended the adoption of the STEEP (Social, technological, economic, environmental and political) analysis on the global market. In this regard, the arguments stated that these five areas represent the major pillars of globalization and their nature and extent of change serve as ideal globalization spread and influence metric across the globe. Therefore, this analysis evaluates how globalization has changes these macro economic factors on multinational organisations. Social Effects A society social analysis implies on the society’s lifestyle as well as their cultural practices. On one hand, an evaluation of the global social living standards as Stanford, J. (2009) argued, evidences rising living standards as well as improving quality of life. In this regard, increased business ventures and the discovery and exploitation of natural resources to meet societal needs have significantly improved living standards and quality of life. On the other hand, an evaluation of cultural practices evidences changing cultural practices. In this case, increased interactions among people from diverse cultures have played a direct role in enhancing culture changes. In this regard, increased globalization has led to an emerging cultural approach regarded as cultural integration where societies adopt and incorporate foreign cultures into their practices. Moreover, besides integration, there has emerged the global concept of cultural diversity, where besides the existing culture changes and differences, societies and business partners resolve to respect the differences. Technology Analysis The technology industry is classified as one of the most dynamic and drastically changing industries in the market. As such, it is highly volatile and often changes to incorporate new developments upon new innovations. Changes in this industry have implicated on business a lot. On one hand, technology changes have facilitated real time communication against geographical barriers, thus enhancing the development of relationships and connections between partners. Moreover, the innovations have not only enhanced the development of formal communication channels but also the informal channels such as the social media. Moreover, it has significantly contributed to increased transportation efficiency through time and costs significant minimization. Therefore, these developments implicate and require changes in which organisations were traditionally led in their absence to incorporate the new changes for increased business performances and success. Economic Analysis The global economic are changing. In this case, as already evidenced under the social analysis, there are increased and improved living standards. This can be deduced form the growing GDPs across the globe. Despite the 2008 global financial setback, a majority of the nations as Levine (2009) evidenced are recovering and recuperating from this challenge to register steadily growing GDPs as well as per capita incomes. As such, increased per capita incomes imply an increasing earnings and disposable incomes across the labour market. Consequently, this has a significant implication on the nature and kind of motivation strategies developed to motivate the employees. As such, organizational leadership trends are required to incorporate and implement these changes. Environmental Analysis Unlike in the past where the environmental conservation and protection role was a reserve of the governments, this scenario has changed and shifted in the modern day society. In this regard, nations and foreign markets have encountered increased environmental lobby group emergence. This as Boatright (2011) described have emerged due to the increased natural resources and environmental exploitation activities exhibited by multinational organisations. Consequently, as a measure to counter this environmental and raw materials acquisition challenges, organizations resulted to the application of corporate social responsibility programs. The execution of these programs requires a re-evaluation of organisations operations models and subsequently necessitating leadership style and approach changes. Political Analysis Finally, under the globalization aspects that necessitate leadership change in organisations is the political changes. In this case, changes in the social set ups, cultural integrations’ and increased communication and information flow through technology changes have a direct input on political changes. As such, these factors have led to increased civic education and liberalization. Therefore, through these changes, there is the emergence of increased democratic governments across the globe. Moreover, in a bid to regulate and protect local industries, global governments have established barriers as well as formed trade regional blocs to control business. In order to mitigate these changes, global leadership structures in business have to change. Leadership Changes As already evidenced by the STEEP analysis above, globalization has caused tremendous changes in the existing business macro-environmental. As such, business managements and leadership structures have changed in a bid to ensure synergy between the leadership approaches and the changed and new macro environmental conditions (Zajda, 2005). This essay section evaluates the various practices that have changed in business leadership and their actual change stimulant causes. Participative over Autocratic Leadership Leadership has many diverse approaches and styles. One of the traditional approaches in leadership was the autocratic leadership style. Under the autocratic approach, leaders were entrusted with making and developing the absolute final decisions for the well being of their organisations. In this regard, the autocratic traditional leadership approach was based on the trait theory that argued that leadership traits wee inherent. Therefore, under this structure, only those in leadership were perceived to posses unique traits to develop appropriate decisions on their organisations behalf. Moreover, one of the major causes of the autocratic leadership approach in organisations was information challenge. In this case, due to the then existing poor communication channels it was hard for organisations to disseminate information to their respective managers to enable make them strategies informed and rational leadership decisions. Therefore, decisions were made at the centre where the information was relatively available. However, increased technology as discussed has changed and transformed this phenomenon. Through increased technology developments, information flow was enhanced. Therefore, it become relatively easier for organizational managers to share information’s seamlessly and in real time through the emerging changes such as cloud computing as well as use of other communication avenues such as emails. As such, increased technology developments led to the adoption of a participative leadership approach in organisations. In this regard, managers and organizational representatives in various and diverse geographical regions regardless of time zones are involved in the decisions making process. Thus, a majority of the leadership decisions developed today are as a result of increased consultations and participation of the involved stakeholders. Besides involving the managers, technology developments have enabled other stakeholders’ involvement and participation possible. For instance, prior to launching new products or enacting major organizational rebranding changes, consumer base surveys are a common scenario today. Through these surveys, consumers inputs and opinions are incorporated and included in the overall strategic decisions made, thus promoting the concept of participative leadership in the new globalization age. Ethical Leadership Traditionally, leadership was based on rules and regulations. In this case, leaders were obliged to follow definite rules and regulations. During this traditional period, leaders, especially organizational leaders applied the utilitarian ethical approach. As Nantel and Weeks (1996) argued, under the utilitarian ethical approach, the ethical nature and acceptability of an action was purely based on the outcomes of such an action. Therefore, despite the other indirect implications of leadership actions the overall implication on organizational success was paramount. This was based on the adoption of the capitalist business model where profits and increased returns on investments were paramount. As such, issues such as social implications or impacts of such leadership decisions on the environment were disregarded. However, as argued under the environmental analysis and implications of globalization, increased exploitation of natural resources and environmental pollution led to the emergence of society lobby groups. In order to mitigate these challenges as already argued, organisations adopted the CSR approach. This approach adoption led to an ethical perception on the leadership. As such, it led to the application of the virtual ethical perception by business leaders. Through a virtual ethic perception, the leaders perceive actions ethicality and appropriateness not based on the shorter direct gains but based on both the short and long term direct and indirect implications. Through the adoption of this changed ethical approach in management, organizational leaders changed their perception on business operational models. This has led to the eventual establishment of social enterprises that are based on a pure virtual ethics leadership model. Moreover, organizational leaderships changed their pre existing profit oriented strategic objectives to incorporate the aspects and components of sustainability through society empowerments’ as well as production models change to reduce environmental pollutions as well as the evaluation and eventual use of alternative renewable production raw materials. Inclusivity Traditionally, as Maccoby (2008) discussed, organizational leaders were the ultimate and only decisions makers. However, this was only applicable and successful due to the localized nature in which organisations operated in. As already argued under globalization analysis, it is evident that organisations operated in isolated domestic markets. As such, the markets often possessed shared beliefs, practices and cultures. Therefore, the leaders often possessed the cultures and beliefs of the market and consumer base, thus acting as their agent. In this regard, the cultural uniformity enhanced reduced resistance to developed leadership decisions. Therefore, there were minimal consultations between the leaders and the market on key social decisions. However, as evidenced under the social analysis section, this has changed over the years. In this regard, modern organisations in the market serve multi cultured markets as well as large geographical areas. Evidently, the consumer base as well as the organizational HR workforce posses differing cultural beliefs and practices. For instance, employee motivational strategies acceptance varies across cultures. On one hand, the European and western culture supports increased financial remunerations. On the contrary, the Asian culture advocates and recognizes increased social recognition and relationships establishment. Moreover, cultures have ethical diversities that lead to the acceptance or the rejection of practices. In order to succeed in these changing market structures, organizational leaders resulted to the modern inclusivity leadership. In this case, such leaders seek the representation of the diverse market cultures. Through this diversion seeking process, organizational leadership structures across the globe have significantly changing representing increased cultural diversity recognition, where the use of expatriates has been significantly reduced and limited to only in situations of spreading an organizational culture or in the events of the lack of such skills in the foreign markets. Increased leadership inclusivity across the globe, has enhanced increased marginalized societies empowerment through their empowerment to influence the nature and type of products supplied to their needs. Practical Application This essay as already established develops an argument on the changes in leadership styles and practices. Based on this analysis is draws on the example of Richard Branson. He is the founder of the now famous Virgin group of companies. Since the inception of the Virgin Group of companies, the group has expanded its control and market influence through increased market diversification (Grant, 2010). As such, it continues to dominate industries such as the air transports trough its Virgin airlines company, as well as the entertainment industry through the Virgin Music venture among others. All these success can be drawn from the leadership traits as exhibited by Sir Richard Branson. This essay section evaluates the various leadership traits and their importance possessed by Sir Richard. Risk Taking One of the most elaborate traits by Sir, Richard is his risk taking culture. In this case, he has over the decades undertaken numerous risks trough innovation. In this regard, instead of abiding by the existing business rules o reduce on loss likelihood, he ventured in innovative business ventures some of which led to huge losses such as the failure of his first venture the Virgin record label which he was eventually forced to sell. However, as demonstrated by his personal mantra of ‘be bold-challenge yourself’ he has increasingly challenged and proved that through risk taking and innovation leadership can be a success. Team work One of the key issues he has demonstrated and often argued upon is use of team work as a leadership strategy. In this case, through shared responsibilities there is increased success rates increment. Sir Richard has walked the talk in this scenario. This can be evidenced in the management structures adopted in all the Virgin Group companies. In this case, instead of single handed managing the ventures, he develops a team of qualified staff, equips and mentors them and once satisfied of their competency entrusts them with the ventures management (Branson, 2014). This offers him enough time and energy to focus on new ventures and a major explanation for the ever groping nature of the Virgin Group of companies. Talent and Entrepreneurial Drive A critical analysis of Sir Richard leadership trends demonstrates an integration of training and charisma. In this case, although he has the required experience in leadership, his ability to motivate and influence employees is phenomenon. As such, it can be deduced that despite possessing train and leadership qualifications, leaders should posses the ability to socially interact with the employees, motivate and influence them in order to increase success rates probabilities in an organization. Based on the above Sir Richard Branson traits analysis, it is evident that he has indeed incorporated the new globalization regulations and influence on business and organisations leadership trends. For instance, his ability to use teams and train them to run organisations ensures the incorporation of increased management diversity as well as representation and inclusivity of the various market segments. Moreover, his trait in risk taking and innovation is congruence with the changing technology and envirionmental factors that call for the development of unique business structures and models seeking to resolve these challenges. Finally, the component of increased talent to social interactions and employee motivation adheres to the need for increased employees and the market participation in leadership. As such, through the interactions, it is relatively simple for him to gather and acquire the employees as well as the consumer needs and inputs in the ongoing organizational processes. Therefore, bases on these reviews, he serves as a new age and modern day organizational ideal leader example. Conclusion In summary, this essay evaluates the extent and nature to which globalization has led to organizational leadership aspects, strategies and approaches changes. As such, the essay offers an initial background analysis on the various aspects in which globalization has led to macro environment changes. On one hand, a social setting analysis evidences increasing cultural integration and diversity as well as improving living standards and quality of life. Moreover, a technology analysis establishes increased ease and reduced time and costs on business communication and transportation aspects. Further, an economic analysis establishes rising GDP levels as well as increased environmental concerns revelation under the environmental factors analysis. Finally, an evaluation of the political changes demonstrates increased democratic states as well as government’s regulations in the market. In addition, the essay evaluation on the changes in modern day organizational leadership establishes increased participative leadership approach use as opposed to the traditional autocratic approach. Moreover, it reveals that modern day leadership applies the virtual ethic approach as opposed to the traditional utilitarian ethical perspective application. Finally, the evaluation establishes that modern day leadership has increased inclusivity through cultural diversity representation in leadership positions. Finally, a practical example evaluation of Sir Richard Branson establishes the application of these factors. In this case, through his key leadership traits on risk taking, innovation, use of teams as well as social interactions, the essay evaluation affirms that the traits are in congruence with the new age leadership dimensions. References Bensoussan, B. E., & Fleisher, C. S. (2013). Analysis without paralysis: 12 tools to make better strategic decisions. Upper Saddle River, N.J: FT Press. Boatright, R. G. (2011). Interest groups and campaign finance reform in the United States and Canada. Ann Arbor: University of Michigan Press. Branson, R., (2014). Richard Branson: Nice Guys Can Finish First, Entrepreneur Retrieved from http://www.entrepreneur.com/article/217309 Grant, R. M. (2010). Contemporary strategy analysis and cases: Text & cases. Hoboken, N.J: Wiley. Levine, A. (2009). The Global Recession and Jewish Law. American Economist, 53(1), 6-15. Maccoby, M. (2008). NASA researchers learn leadership as a way of being. Research Technology Management, 51(6), 66-67 Nantel, J., & Weeks, W. A. (1996). Marketing ethics: Is there more to it than the utilitarian approach? European Journal of Marketing, 30(5), 9-19 Pendse, N. G., & Choubey, S. K. (2006). Globalisation and Indian manufacturing sector. New Delhi: Sarup & Sons. Stanford, J. (2009). Forum on labour and the economic crisis: Can the union movement rise to the occasion? Labour, (64), 135-172 Zajda, J. I. (2005). International handbook on globalization, education and policy research: Global pedagogies and policies. Dordrecht, the Netherlands: Springer. Read More