Vision of Leadership

My Vision of Leadership

Throughout 5 years of working experiences in conjunction with leadership module taken in part time MBA under Coventry University (CU) had given me an insightful knowledge about the development of leadership. First of all, to be a great leader, I must set the direction with my followers of where we will going to. Engagement with followers in my leadership journey is important to reach organisational goals. To live out a vision, the most persistence matters are inspiration. An effective leader must be able to foster collaboration and build spiritual teams by inspiring followers to achieve goals (Hurduzeu 2015). This involves pulling followers out from status quo. Under this circumstance, a leader could paint a compelling and inspiring picture of what the future will look like to followers in order to convince them to progress towards a shared vision.


Leadership models and theories that I want to achieve

The 10 weeks leadership’s modules act as career ladder to becoming a leader in my future. Among all the leadership styles, I would choose transformational and charismatic leaderships because these leadership styles inspire me the most as the visions are achieved together by leader and followers. This is supported by Khatri, Templer and Budhwar (2012) as they identified charisma and vision is the two basic components of transformational leadership. On the other hand, charismatic leadership contained three core components such as envisioning, empathy and empowerment (Choi 2016). Therefore, values abstracted from this two leadership styles form parts of my vision of leadership.

Maslow’s hierarchy of needs (Maslow 1943) and Herzberg’s motivational-hygiene theory (Herzberg, Mausner and Snyderman 1959) are also part of my vision of leadership. As stated in Figure 1, the factors act as powerful tools to motivate followers. By satisfying the deficiency and growth needs, followers felt the sense of ‘belongingness’ and motivated to work. The same goes to Herzberg’s motivational-hygiene theory (Figure 2), motivation can be done through elimination of job dissatisfaction’s factors followed by create conditions for job satisfaction. I believe failure to apply this two factors may cause followers demotivated and job dissatisfaction in workplace. Video 1 shows the motivation exist in workplace.

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Figure 1: An interpretation of Maslow’s hierarchy of needs, represented as a pyramid with the more basic needs at the bottom (Maslow 1943)
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Figure 2: Herzberg’s two-factors theory (1959)

Video 1: Motivation in Workplace (Youtube 2017)


Leader who Inspired Me

Tan Sri Liew Kee Sin – charismatic and visionary leader (Figure 3)

He is a chairman of EcoWorld Development Group Bhd and he is simply known as a charismatic and visionary leader by his employees. Under his leadership DNA initiatives, he had demonstrated keen foresight and entrepreneurial quality of vision. One of his remarkable engagement activities with employees is the CEO dialogue section held in every morning (Ng 2013). The open feedback and discussion given empowerment to employees to propose workable ideas that would helps improve operations and systems of organisation. The two-way communication assists him in building up a strong team of dedicated people who are willing to work with him. Besides that, the cultural diversity established in his teams works well and further strengthened the engagement between leaders and employees. I was truly inspired by his way in living up to vision, fostering teamwork and inculcate motivation among employees.  His style of leadership is compatible with my vision of leadership as described in first paragraph.

Liew's new world
Figure 3: Tan Sri  Liew Kee Sin, chairman of Eco World Development Group Bhd

Feedback from Colleagues and Personality Test

Feedback collected from my colleagues shows that I am good in team working. They mentioned that I able to communicate and mix well with them. As a leader, communication is a tool to deliver ideas to followers moving towards the organisational goals (Husain 2013). Language barrier could be occurred during communication with culturally diverse people, however this would not be the obstacle to deliver ideas to followers.

Analysis from the personalities test (Figure 4) shows that I am an extraverted person. I prefer group activity and get energised by social interaction. This personality is important to interact with people confidently and take up challenges easily especially in ever changing business world.

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Figure 4: Personality Test to know own strengths (16 personalities 2017)

Leadership Skills that I would like to Develop and How do I Develop It

Throughout my MBA module under CU, I would like to develop delegation and motivation skills. These skills are important in building up a trustworthiness team work with followers to achieve organisational goals. Delegation can be developed through empowerment of followers (Lyons 2016). Empowerment emphasise freedom and re-distribution power at which followers responsible for outcome thus making each follower feel capable and powerful. Effective delegation enhances motivation and creates an atmosphere of mutual respect that make followers’ willingness to contribute to the team.


Conclusions

In conclusion, the module of ‘Leading in a Changing World’ provides a holistic learning platform for me to develop leadership skills that can be implemented at workplace and learnt to leverage on my own strengths. Therefore, to lead in the changing world, a leader must embrace the challenges and changes in order to drive business successful in future.

(738 words)


References

Choi, J. (2016) ‘A Motivational Theory of Charismatic Leadership: Envisioning, Empathy and Empowerment’. Journal of Leadership and Organisational Studies 13(1), 24-43

Herzberg, F., Mausner, B. and Snyderman, B.B. (1959) The Motivation to Work. New York: John Wiley & Sons

Hurduzeu, R. (2015) ‘The Impact of Leadership on Organisational Performance’. SEA: Practical Application of Science 3(1), 289-293

Husain, Z. (2013) ‘Effective Communication Brings Successful Organisational Change’. The Business & Management Review 3(2), 43-50

Khatri, N., Templer, K.J. and Budhwar, P.S. (2012) ‘Great (Transformational) Leadership = Charisma + Vision

Lyons, P.R. (2016) ‘Making the Case for Manager Delegation of Authority’. Human Resource Management International Digest 24(5), 1-3

Maslow, A. H. (1943) ‘A Theory of Human Motivation’. Psychological Review 50(4), 370-396

Ng, A. (2013) ‘For S P Setia Employees, Loyalty Comes Naturally’. My Start Job [online] 11 May. available from <http://mystarjob.com/articles/story.aspx?file=/2013/5/11/mystarjob_careerguide/13068272&sec=mystarjob_careerguide&gt; [22 March 2017]

Leadership & Change

Why Change is needed?

The volatility in world market and intense competition in dynamic workplace indicates that change is now a normal state of business to survive and succeed in an unpredictable environment (Peccei, Giangreco and Sebastiano 2011). Organisation need to face changes in technology innovation, change in competitive strategy and internal organisational changes. Market leaders who did not change successfully are nowhere today (Birkinshaw 2013).


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Referring to the statement by Mullins and Christy (2013), I agree that change is inevitable and it is depends on individual’s personality. People who remain status quo and refuse to change might be knocked out by society. Corporate Leadership Council (2009) reported that organisational performance can be improved if only the changes are effectively delivered by managers to employees. Communication act as a key when you want employees to change and it must be effectively done so that employees understand the need to change. Therefore, the future of the organisation may be influenced by the willingness of employees’ decisions on whether remains status quo or seek to change (Dobre 2013).  This is well-explained by the examples of organisations found in this blog.


Why People Resist to Change?

Organisational’ view

There is possible to fail. Pieterse, Caniels and Homan (2012) asserted that 70% of all change efforts fail, leading to disappointed expectations and losses millions of dollars in time and resources. This is because the failed organisation does not take the correct approach to see the change through such as allowing too much complacency, underestimating the power of vision, neglecting to stick to changes firmly in the culture and etc. (Foster 2010).

Individual’s view

In view of individual who is inertia, the reason behind are due to job insecurity, anxiety or loss of control (Oreg 2006). This happened when staffs are promoted that favour performance over seniority.  Conflict and sense of insecurity occurred causing disengaged counterparts among employees and eventually jeopardise organisation’s overall performance (Lucky, Minai and Rahman 2013).


Role of Manager in Managing Change

Managers play a vital role to avoid and overcome the resistant to change. Managers can inspire others to change by identifying the problems, delineation of clear goal and build consensus with employees by seeking advice from them (Zenger and Folkman 2015). All these required long time implementation, training and commitment from senior management. Employees are critically important to change initiatives because they act as change implementers and their commitment might determine the desire goal of initiatives (Fugate, Prussia and Kinicki 2012). Thus, strength of relationship between manager and employees are vital to support change programmes.


Models of Change Management

a)    John Kotter’s 8 Step Organisational Change Model

Kotter (1996) introduced an emergent approach which consists of Eight-Stage Process for Successful Organisational Transformation. The eight-steps shown in Figure 1 are required for large scale change in an organisation.

Firstly, leader needs to tell employees that it is time to change and then gather the most powerful employees to form a team. Vision is then developed together with right strategy by effective communication. Barriers are identify and removed subsequently. A win achieved and more people willing to change after seeing the result. Wave of changes is created until the vision is realised. Lastly, stick to the change by continues the new and winning behaviour despite the pull of tradition.The stages are well-explained in Table 1.kotter

Figure 1: Kotter’s Eight-step Process in Leading Change (Kotter 1996)

Steps Explanation
Step 1

Establish a sense of urgency

The organisation must have gut enough to determine the move. Leader must drive people out of comfort zones and patience is required to inspire and motivate them to greatness.
Step 2

Create a guiding coalition

No one can create a successful change without a team of effective people. Getting the right people in a right place is important to get productive decisions.
Step 3

Create a change vision

Vision is linked with feasible strategies, plans and budgets to achieve goals within the agreed time frame. Guidance is needed to support and lead the team in the correct pathway.
Step 4

Communicating the change vision

Effective communication with members to gather information and provide opportunity to ask questions. Opinion and concern are taken seriously to ensure vital messages are highly visible and understood across the entire organisation.
Step 5

Empower Action

Barriers that undermine the vision are removed to unleash the potential of people to do their best. People who are resists to change are known and honest dialogue is carried out to change their mindset and let them know they are needed for change.
Step 6

Create short-term wins

The win is visible and unambiguous and acts as an evidence to show their sacrifices are paying-off. People are optimistic with the change and feel motivated to move on.
Step 7

Consolidate improvements and producing more change

Maintain the momentum and sustain change. Analyse what went right and what needs to improve after win. New change agents and leaders are introduced for change coalition.
Step 8

Anchor to the change

Change does not stop here and win behaviour continues. Culture is build up by shared values and norm of behaviour.  New employees are reinforced with new norms and values such as incentives, rewards and promotions.

Table 1: John Kotter’s 8 Step Organisational Change Model with Explanation (Kotter 1996)

Limitations of Kotter’s Eight-step Change Process

On the downside, there are few drawbacks to Kotter’s model. Bamford and Forrester (2003) argued that the model lacks coherence and a diversity of techniques. They mentioned that there is no one model can be fit by all organisations in all situations and at all times. Burnes (1996) asserted that Kotter’s model is beneficial to large organisation but not for small enterprises.


b)   Kurt-Lewin’s 3 Steps Change Model

As shown in Figure 2, the organisational change is explained by creating and understands the motivation to change and what to change (unfreeze). Secondly, flexibility of action plan is implemented and change process required effective communication and empowering people to embrace new values, attitudes and behaviours in work. Lastly, organisation return to the state of stability and the change is anchored into the culture (Refreeze). Thus, support and training is necessary while praise and rewards on individual level are needed for more effective performance at an organisational level. However, this model does possess its limitations. The model is very rational, goal and plan oriented. It lacks moral emotions and bypass employees’ feelings (Lapsley and Hill 2009). Thus, some employees might not get adapted to the change and leave the team when changes are carried on.

change-management-models-by-operational-excellence-consulting-6-638

Figure 2: Kurt Lewin’s 3 Steps Change Process (Lewin 1947)


Example of Organisation that Embrace Change Successfully

In 1994, CEO of Continental Airlines, Gordan Bethune (Figure 3) successfully transformed the organisation from worst carrier to fifth-largest airlines (Klein 2002).  Before the organisation became the market leader in aviation industry, Continental Airlines was forced to file for two bankruptcies prior to 1991.  The significant change was initiated by the implementation of “Go Forward Plan” that utilise steps in Kurt Lewin’s three step change model. The employees were told to understand the need for change. Employees were then empowered and involved in meetings to motivate them more engaged in the plan (Brenneman 1998). The change took five years to make the airlines back to the top placement.

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Figure 3: Gordon Bethune sharing his experiences in saving Continental Airline (Bethune 1999)


Example of Organisation that Fail to Change

Research In Motion (RIM) was failed to embrace change due to unwillingness to adopt Android operating system which is getting more popular and more functionality than Blackberry’s existing operating system (Bala, Sharma and Kaur). Mr. Heins, ex-CEO of blackberry was so confident that Blackberry’s proprietary operating system would stand out as sustainable advantage and occupied a government segment of the market (Beatty 2012). Internally, the change management was not effectively implemented. Employees were not empowered to make decision or raise their opinions due to autocratic leadership style and high controllability of leaders adopted in organisation (Castaldo 2012). The suppression of leaders along with intimidating management style caused the business fail to thrive (Figure 4). By 2016, Blackberry’s market share was reduced to a rounding error, amounting to 0.0% market share (Vincent 2017).

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Figure 4: Worldwide Smartphone Sales in the Fourth Quarter of 2016. (Vincent 2017)

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Figure 5: The unsold units of Blackberry phones in market (Source: The Guardian 2013)


Conclusion and Recommendations for Managers 

In conclusion, change is inevitable as it is part of individual growth or sustainability of organisation due to the dynamically and challenging market in business environment. The reason in resistance to change is understandable, but it would not bring business to sustain longer. Therefore, it is responsibilities of managers to incorporate the need of change with their employees to create a sustainable business model whenever any circumstances occurred in future.

(840 words)


References

Bala, K., Sharma, S. And Kaur, G. (2015) ‘A Study on Smartphone based Operating System’. International Journal of Computer Applications 121(1), 17-22

Bamford, D.R. and Forrester, P.L. (2003) ‘Managing Planned and Emergent Change within an Operations Management Environment’. Internationl Journal of Operations & Production Management 23(5), 546-564

Beatty, C. (2012) RIM CEO Confident to Claim No.3 Spot [online] available from < http://www.kitguru.net/lifestyle/mobile/colin-beatty/rim-ceo-confident-to-claim-no-3-spot/> [19 March 2017]

Bethune, G. (1999) ‘From Worst to First: Behind the Scenes of Continental’s Remarkable Comeback’. New Jersey: Wiley

Birkinshaw (2013) Why Corporate Giants Fail to Change [online] available from <http://fortune.com/2013/05/08/why-corporate-giants-fail-to-change/&gt; [23 March 2017]

Brenneman, G. (1998) ‘Right Away and All at Once: How We Saved Continental’. Harvard Business Review [online] September-October. available from < https://hbr.org/1998/09/right-away-and-all-at-once-how-we-saved-continental> [15 March 2017]

Burnes, B. (1996) ‘No Such Thing As …A “One Best Way” to Manage Organizational Change’. Management Decision 34(10), 11-18

Castaldo, J. (2012) How Management Has Failed at RIM [online] available from < http://www.canadianbusiness.com/technology-news/how-management-has-failed-at-rim/> [20 March 2017]

Corporate Leadership Council (2009) Preparing for the Turnaround: Engaging the Workforce for Future Growth [online] available from <http://www.hreonline.com/pdfs/01012010Extra_CorpExecBoard.pdf&gt; [10 March 2017]

Dobre, O. (2013) ‘Employee Motivation and Organizational Performance’. Review of Applied Socio-Economic Research 5(1), 53-60

Foster, R.D. (2010) ‘Resistance, Justice and Commitment to Change’. Human Resource Development Quarterly 21(1), 3-39

Fugate, M., Prussia, G.E. and Kinicki, A.J. (2012) ‘Managing Employee Withdrawal during Organisational Change: The role of Threat Appraisal’. Journal of Mangement 38 (3), 890-914

Klein, D.S. (2002) Smart Business [online] available from < http://www.sbnonline.com/article/from-worst-to-first-continental-airlines-ceo-gordon-bethune-s-forward-thinking-philosophy-set-the-standard-for-corporate-turnarounds/> [15 March 2017]

Kotter, J. (1996) The 8-Step Process for Leading Change [online] available from <https://www.kotterinternational.com/8-steps-process-for-leading-change/> [15 March 2017]

Lapsley, D.K. and Hill, P.L. (2009) The Development of the Moral Personality. London: Cambridge

Lewin, K. (1947) ‘Frontier in Group Dynamics: Concept, Method and Reality in Social Science; Social Equilibria and Social Change’. Human Relations 1(1), 5-41

Lucky, E.O.I., Minai, M.S. and Rahman, H.A. (2013) ‘Impact of Job Security on the Organisational Performance in a Multiethnic Environment’. Research Journal of Business Management 7(1), 64-70

Mullins, L., and Christy, G. (2013) Management & Organisational Behavior. Harlow: Pearson

Oreg, S. (2006) ‘Personality, Context and Resistance to Organisational Change’. European Journal of Work and Organisational Psychology 15 (1), 73-101

Peccei, R., Giangreco, A. and Sebastiano, A. (2011) ‘The Role of Organisational Commitment in the Analysis of Resistance to Change’. Personnel Review 40 (2), 185-204

Pieterse, J.H., Caniels, M.C. and Homan, T. (2012) ‘Professional Discourses and Resistance to Change’. Journal of Organisational Change Management 25 (6), 798-818

Vincent, J. (2017) 99.6 Percent of New Smartphones Run Android or IOS. [online] available from <http://www.theverge.com/2017/2/16/14634656/android-ios-market-share-blackberry-2016> [19 March 2017]

Zenger, J. and Folkman, J. (2015) 7 Things Leaders Do to help People Change [online] available from <https://hbr.org/2015/07/7-things-leaders-do-to-help-people-change&gt; [11 march 2017]

Effective Leadership & Management Styles & Approaches

Leadership vs. Management

Leadership and management do not differ from one another as both involved in engagement with their subordinates on what they need to be done as the power of authority lies in their hand.  Besides that, leadership and management are needed to align people and resources so that the competencies can be used effectively to achieve strategic alignment of an organisation.

In work environment, leadership and management are often interrelated and used interchangeably. However, leadership and management do possess differences intrinsically. Table 1 shows the differences that distinguish between leadership and management.

Leadership (Kotter 1990)

Management (Fayol 1916)

Sets a direction Plans and budgets
Aligns people Organises and staffs
Motivates and inspires Controls and solve problems
Mastery of the context Control of the environment

Table 1: Key aspect of differences between leadership and management.


Effective Approach to Managing the Work of Subordinates

It is important to leader to possess an effective way to lead subordinates in achieving goals of an organisation.  Nahavandi (2002) has proven that different leadership styles may affect organisational effectiveness or performance. I personally agree that transformational leadership is the best approach to manage work of subordinates. Figure 1 shows the four basic components that underlie transformational leadership.

 

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Benefits of Transformational Leadership

Transformational leadership encourages broadening and elevating the ideas of subordinates for the sake of the organisation or team besides concerning individualised consideration for subordinates (Bass 1985). This will heightened capacity and commitment of subordinates to produce greater productivity to the group thus enhance business competitiveness (Barbuto 2005).

Limitations of Transformational Leadership

Abuse of power emerged such as escalating demands from leaders might causing subordinates having stress-related problems in workplace (Hall et al 2002). Therefore, leaders must create a work-life balance with subordinates to solve this issue. Besides that, Bass (1997) asserted that transformational leadership do not foster moral rectitude as subordinates are exploited for ideas regardless positive morale value. Thus, in his further research, Bass (1998) suggested that an authentic transformational leadership must obligate the values of fairness, loyalty and human rights.


A research done by CMI (2013) found out that ‘there is no single ideal, as the best approach may vary according to circumstances and individual characteristics’. This statement is agreeable mainly because leadership style can be varied by situation, depending on the needs of the team. Best leaders do not adopt just a style of leadership; they have the flexibility to switch between styles as the circumstances dictate. Studies found out that flexible and adaptive leadership is essential to enhance organisational performance (Yukl and Mahsud 2010). This is important because organisation need to encounter challenges of diverse workforce, increasing globalisation and rapid technological change.


Examples of Good Leadership Skills have on Subordinates

One of the examples is Tan Sri Tony Fernandes (Figure 2), Director of AirAsia Bhd. Tony known for his credibility in turning AirAsia to one of the well known airline brands in the world. He practices good organisational culture as there is no bureaucracy involved in his office because he believed that too much bureaucracy could impede the growth of the business. His is easily approachable and accessible to his staff and stressed the importance of working as a team to archive organisational goal (Schien 2004). Under his wings, employees are treated as family and management will reward to those contributing ideas to the organisation. By practising good leadership in organisation, he gained trust and respect among his dedicated employees (Tracey and Hinkin 1994).

AirAsia-Group-CEO-Tony-Fernandes-receives-6th-consecutive-Worlds-Best-Low-Cost-Airline-award-from-Skytrax

Figure 2: Tony and his employees received Skytrax World’s Airline Awards held at the Paris Air Show in Le Bourget (Source: AirAsia 2017)


Examples of Bad Leadership Skills have on Subordinates

Enron’s top management set as a bad example of leadership when most of the top executives were tried for fraud in November 2001 and caused 4,000 job losses (Fox News 2001). The moment Enron filed for bankruptcy, employees were instructed to leave the building on the same day (Figure 3). Top management lack of integrity, insatiable spirit of success and arrogance that leads to failure (Clegg and Cooper 2009). Executives only concerning on their self interests but not for the interests of others as many of them made decisions to achieve their goal of maximizing profits. Enron’s stock was collapsed to worthless compared to $83 in early 2001 and subsequently resulted 62% of 15,000 employees were sufferings from losses as their saving plan which relied on Enron’s stock were practically worthless after the scandal (Ayala and Giancarlo 2006). In short, employees and shareholders received limited returns in lawsuits, losing their pensions and stock prices.

ENRON-copy
Figure 3: Enron’s swift collapse left the prospects of 21,000 employees in doubt and wiped out what was left of the holdings of stock investors

How People would like to be led?

Followers expect to be led by leaders who have commitment and have his/her own set of vision and strategy and capable to bring the team and organisation to reach desire goals. Transformational leadership would be more preferable in the extent to which it creates valuable and positive change in the followers to reach desire goals. In return, leader gain trust and respect from followers.


Conclusion

In conclusion, I would prefer transformational leadership styles as I think this style is more suitable in dynamic workplace environment and enhance motivation between subordinates and leaders and would be more perfect if morality is inculcated into it. As a member of a team, I would like to be led or manage by not just in one leadership styles but more fluid switch to adopt other styles under different circumstances and needs. This is also agreed by CMI that there is no one single style that can fit all situations.

(770 words)


References

Ayala, A. and Giancarlo, I.S. (2006) ‘A Market Proposal for Auditing the Financial Statements of Public Companies’. Journal of Management of Value, 41-70

Barbuto, J.E. (2005) ‘Motivation and Transactional, Charismatic and Transformational Leadership: A Test of Antecedents’. Journal of Leadership and Organisational Studies 11(4), 26-40

Bass, B.M. (1985) Leadership and Performance Beyond Expectations. Collier: McMillan

Bass, B.M. (1997) ‘Does the Transactional-Transformational Leadership Paradigm Transcend Organizational and National Boundaries?’ American Psychologist 52(2), 130-139

Bass, B.M. (1998) Transformational Leadership: Industry, military and Educational Impact. New Jersey: Lawrence Erlbaum Associates

Chartered Management Institute (2013) Understanding Management Styles Checklist 236 [online] available from < https://www.managers.org.uk/~/media/Files/ Campus%20CMI/Checklists%20First%20Management%20Role/Understanding%20management%20styles.ashx> [2 March 2017]

Clegg, S.R. and Cooper, C.L. (2009) The SAGE Handbook of Organizational Behavior. London: SAGE

Drucker, P.F. (1998) ‘The Discipline of Innovation’. Harvard Business Review 76(6), 149-157

Fayol, H. (1916) ‘General and Industrial Management‘. London: Pitman

Fox News (2001) Enron Releases 4,000 Employees [online] available from < http://www.foxnews.com/story/2001/12/03/enron-releases-4000-employees.html&gt; [3 March 2017]

Hall, J., Johnson, S., Wysocki, A., Kepner, K., Farnsworth, D. and Clark, J.L. (2002) Transformational Leadership: The Transformational of Managers and Associates [online] available from < http://edis.ifas.ufl.edu/hr020&gt; [2 March 2017]

Kotter, J. (1990) ‘What Leaders Really Do’. Harvard Business Review  68(3), 103-111

Kotterman, J. (2006) ‘Leadership vs Management: What’s the difference?’. Journal for Quality and Participation 29(2), 13-17

Longenecker, C.O. and Ariss, S.S. (2002) ‘Creating Competitive Advantage through Effective Management Education’. The Journal of Management Development 21(9), 640-654

McBain et al (2012) The Business Benefits of management and Leadership Development, CMI and Penna

Mullins, L.J. (2010) Management and Organisational Behaviour. England: Pearson

Nahavandi, A. (2002) The Art and Science of Leadership. New Jersey: Prentice Hall

Schien, E.H. (2004) Organisational Culture and Leadership. San Francisco: Jossey-Bass

Tracey, J.B. and Hinkin, T.R. (1994) ‘Transformational Leaders in the Hospitality Industry’. Cornell Hotel and Restaurant Administration Quarterly 35(2), 18-24

Yukl, A.G. (2010) Leadership in Organizations. New Jersey: Prentice Hall

Managing Diverse Teams

Introduction

Gregersen, Merrison and Black (2009) asserted that “today’s executives have the challenge to lead organisations into new, unmapped outposts of the global marketplace”. Consequently, global business leaders need to explore more and face the uncertainty that arises in an untapped marketplace in order to lead an organisation that span with diverse countries, cultures and background.


Advantages of Diverse Teams

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I strongly agree to the statement by Ibarra and Hansen (2011) that in today’s dynamic business environment, teamwork is a key component to gain competitive advantage in achieving strategic goals (Ray 2015). Besides that, diverse teams enhanced the communication skills in dealing with domestic and foreign customers, thereby improve customer satisfaction. Diverse teams could also improve decision-making and problem-solving skills thus improving an organisation’s effectiveness. They can easily adapt to the dynamic environment thus reduce the cost of employee turnover (Barak 2016).


Challenges of Managing Diverse Teams

Diverse teams consist of members from diverse culture and country. Leaders may face challenges when leading diverse teams as disparate cultural perspectives exist in heterogeneous teams (Janssens and Brett 2006). A significant challenge for leader is to lead and treat diverse workforce in an equitable manner. Therefore, diversity needs to be managed effectively to avoid adverse implications. Some of the implications include engage in conflict, miscommunication due to language barrier and higher staff turnover due to different perspectives and distinct cultural background (Agrawal 2012). These challenges may leads to poor organisation’s performance as it is difficult to achieve consensus among team members.


Examples of Diverse Teams in Organisation

One of the organisations which successfully adopt cultural diversity is Johnson & Johnson (J&J). They have a vision of ‘Global Diversity and Inclusion’ where they believed a successful business hinges on a team of diverse employees (Figure 1) in the same organisation. J&J has over 125,000 employees in 60 countries, their leaders foster a common language to aid communication between diverse team members. J&J diversifying their workforce and see its implementation as a norm and continuously strive to improve diversity management. Hence, diverse team with cross-functional and cross-regional experiences would facilitate global operations around the world (Johnson & Johnson 2017).

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Figure 1: Diverse Teams in J&J (J&J 2017)

Video 1: Johnson & Johnson Accept Award | 2015 GLSEN Respect Awards – New York (Youtube)


Another example of an organisation that adopts diversify team is McKinsey & Company (Figure 2). As shown in Figure 3, they know intuitively that ‘diversity matters’. In their latest report, Diversity Matters (Hunt 2015), it shows that the company which demonstrates gender and ethnically diverse workforce would more likely to outperform than other company in the same industry. The benefits of diverse perspectives, ideas and background leads to diverse teams will make them move faster, increase innovation and creativity (Gupta 2016). Undoubtedly, this will improve competitive advantage for companies and eventually leads to a virtuous cycle of increasing returns.

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Figure 2: Cover page of McKinsey & Company’s report, Diversity Matters (Hunt 2015)

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Figure 3: Outcome of diverse team in McKinsey & Company (2015)


Recommended Approach to Manage Diverse Team

People with distinct background and culture tend to have different perspectives and point of view. Developing a diverse team is seen as a difficult task for leader or manager. Hence, a theory for team development, known as ‘Tuckman’s Team Development Model‘ is responding the importance of teams in workplace (The Salvation Army Australia Eastern territory n.d.). There are four stages in the model. The stages are shown in figure 4 and the steps are well-explained in table 1.

ldtd0201

Figure 4: Steps in Tuckman’s Team Development Model (Tuckman 1965)

Steps 1

“Forming” to “Storming”

 

Leader provides directions to diverse team to work on common tasks. Every member is distributed with power and responsibilities to complete the mission assigned by leader. Reward will be structured if the idea is accepted by majority of members.

Steps 2

“Storming” to “Norming”

 

Leader meets with members and listening to each others’ feedback and opinion. Members work in an active environment by accepting criticism and reply from leader. Commitment is honoured to every member.

Steps 3

“Norming” to “Performing”

 

Leader should praise and flatter team members. Each of the members must self-evaluate and delegate themselves to the team. Trust and commitment within the group is emerged. Rewards and successes are shared within members.

Table 1: Action Steps Involving in Tuckman’s Stages of Team Development(Tuckman 1965)

Limitations of Tuckman Theory

The theory was carried out in limited number of small group. This does not represent all of the team can be developed in the same way. It has to be precise to a certain extent that large group of diverse members are evaluated for a longer period. Moreover, this theory was done in 1965 and might not be applicable in future due to dynamically changing in business environment. Thus, limitations would be addressed for future research (Bonebright 2010).


Recommendations for Managing Diverse Teams and Conclusion

In conclusion, besides learning how to become an ethical leader, a leader should well-equip with the ability to coordinate with diverse workforce in dynamic work context. Leading a diverse team encompasses people from variety backgrounds, using different languages for communication and indifferent of ideas produced during meeting and cause difficulty in reaching consensus. Thus, as a leader of a team, I would suggest open-door policy to discuss the issues involving the participation of members to come out with a mutually acceptable solution to solve the issues . Diverse teams have its pros and cons and leader must establish a comprehensive way to deal for the sake of reaching organisational’s goals. Therefore, I strongly believe that throughout many years of working experiences, a leader has would unwittingly hit upon a particularly effective approach to manage a diverse team.

(663 words)


References

Agrawal, V. (2012) ‘Managing the Diversified Team: Challenges and Strategies for Improving Performance’. Team Performance Management: An International Journal 18(7/8), 384-400

Barak, M.E.M. (2016) Managing Diversity: Toward A Globally Inclusive Workplace. United States of America: Sage

Bonebright, D.A.  (2010) ’40 Years of Storming: A Historical Review of Tuckman’s Model of Small group Development’. Human Development International 13(1), 111-120

Gregersen, H.B., Morrison, A.J. and Black, J.S. (1998) ‘Developing Leader for the Global Frontier’. Sloan Management Review 40(1), 21

Gupta, M. (2016) Suite Talk: Sajith Sivanandan, regional MD of Google [online] available from < http://www.humanresourcesonline.net/5-ways-google-making-tech-sector-gender-diverse/> [15 February 2017]

Hunt, V., Layton, D. and Prince, S. (2015) ‘Why Diversity matters’. McKinsey & Company [online] January. available from http://www.mckinsey.com/business-functions/organization/our-insights/why-diversity-matters> [18 February 2017]

Ibarra, H. and Hansen, M.T. (2011) ‘Are You A Collaborative Leader?’ Harvard Business Review 89(7/8), 68-74

Janssens, M. and Brett, J.M. (2006) ‘Cultural Intellie in Global Teams: A Fusion Model of Collaboration’ Group and Organisation Management 31(1), 124-153

Johnson and Johnson (2017) Diversity and Inclusion [online] available from < https://www.jnj.com/ about-jnj/diversity> [15 February 2017]

McKinsey & Company (2015) Why Diversity Matters [online] available from < http://www.mckinsey.com/business-functions/organization/our-insights/why-diversity-matters> [18 February 2017]

Ray, S. (2015) ‘Unity in Diversity – Managing Diverse Teams’. Human Capital Online Library [online] November 2015. available from <http://www.humancapitalonline.com/view_article.php?aid=2700 > [10 February 2017]

The Salvation Army Australia Eastern Territory (n.d.) Tuckman’s team Development Model [online] available from <https://salvos.org.au/scribe/sites/2020/files/Resources/Transitions/HANDOUT_-_Tuckmans_Team_Development_Model.pdf&gt; [13 February 2017]

Tuckman, B.W. (1965) ‘Developmental Sequence in Small Groups’. Psychological Bulletin 63(6), 384-399

LEADERSHIP & ETHICS

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I strongly agree to the above statement by Rubin et al (2010). An ethical leadership may lead the organisation in a manner that respects the rights and dignity of others (Ciulla 2004). Ethical leadership enhance employee satisfaction with leaders, thus increase work output effectiveness and dedication to making extraordinary efforts as part of their performance (Brown, Trevino and Harrison 2005). However, some scholars stated otherwise and asserted that not only leaders must act ethically but employees must behave ethically to enhance positive effects on organisational effectiveness (Brown and Mitchell 2010).


Ethical Theories

Two of the most popular business ethics are Teleological and Deontological. In later years, although they have been largely substituted by many modern approaches, they form part of the tradition which newer approaches have been constructed.

Teleological approaches hold that the moral worth of actions or practices is determined by their consequences (Beauchamp and Bowie 2004). Action is judged desirable if it leads to the best possible balance of good consequences over bad consequences. In view of business ethics, it is crucial to weigh the costs of a business and social benefits before determining whether to pursue it. For instance, The Arctic National Wildlife Refuge in Alaska is under threat by fossil fuel interests (DesLauriers 2016). The oil company must weigh the economic benefits of oil drilling activities against the costs of environmental degradation in a preserve land. Teleological philosophy appears drawbacks as an approach to business ethics in measuring the benefits and costs of a course of action. How does drilling company evaluate the harm done to the region’s ecosystem?

Kantian ethics, deontological approach emphasis on “respect for person”. People have dignity and need to be respected as such (Rachels 1986). It is departs significantly from teleological that focus on consequences. In Kantian ethics, violation of ethics emerged if co-workers working for long hours, minimum wages and under unfavourable working condition. Co-workers are being treated like machines and not as conscious moral beings that have dignity. However, Kant’s ethical philosophy also has some limitations in the extent to which that his philosophy excludes moral emotions and sentiments such as sympathy and caring. Secondly, Kant’s philosophy sometimes is weak in providing correct guidance for every decision to be made.


The 4 V Model of Ethical Leadership

The 4-V Model (Figure 1) is a model that aligns the inner (values) with the outer (actions) to achieve common good (Kar 2014). Leaders need to discover and integrate their core values, exploit the vision on how the things could be distinct, discover their personal voice to articulate their vision by motivating followers and achieve the desire goals that can brings outer commitment and common good.

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Figure 1: 4V’s Model in Ethical Leadership (Kar 2014)

This model can be seen on Robert Smith (Figure 2), a private-equity financier and chairman of Vista Equity. He was famous for the donation worth $20 million to National Museum of African American in 2016 (Alexander 2016).  He gained respect from his employee due to his values on real talent and does not discriminate them (Gelles 2014). Robert mentioned that he wish to inspire other leaders to contribute to society. As described in 4V Model, leader must initially understand the core value, then a vision is developed on how the world could be distinctive from others, then voice out the vision in convincing manner to inspire others and at the end inculcate this morality to cultivate virtue (Center for Ethical Leadership 2016).

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Figure 2: Robert F. Smith – The little -known black billionaire who made a $20 million USD donation to the African American Smithsonian Museum (Washingtonpost 2016)

Example of Unethical Leadership Behaviour in Toshiba

Ethical leaders in an organisation would bring huge business impacts while unethical leaders might cause tremendous effect to the organisation (Brown and Mitchell 2010). One of the examples of unethical leadership was happened in Toshiba’s due to their accounting scandal that caused financial losses and public mortification. Toshiba’s ex-CEO, Mr. Hisao Tanaka confessed that they had overstated operating profits to about $1.2billion for past seven years (Mochizuki 2015). The fraudulent accounting was due to the culture practised in corporate as the employees forced submissive to superiors without challenging them. Consequently, Toshiba faced a fine of $60million, share value declined by as much as 40% and losses $318 million after the scandal came out (Millman and Curtis 2015). Video 1 explain clearly to the accounting scandal happened in Toshiba.

Video 1: Toshiba CEO quits over $1.2 billion accounting scandal


Example of Ethical Leadership Behaviour in Wipro

Wipro Limited was awarded for “2016 World’s Most Ethical Company” (Figure 3) for 5th consecutive year by Ethisphere Institute (Ethisphere 2016). The corporate committed in leading ethical business standards and fostering transparency at every level. For instance, Azim Premjit (Founder of Wipro) emphasised Code of Business Conduct (COBC) as a guideline that applied to all levels of employees in Wipro from top to ground (Wipro 2017). COBC strictly prohibit unfair trade practices, foreign corrupt, abolition of forced labour etc. Employees are encouraged to report suspected violations to their respective supervisor and whoever engaged in prohibited conduct will be subjected to disciplinary action including termination.  This is to ensure the business is conducted in an ethical way and to earn trust from all stakeholders. Wipro has proven that performing an ethical business will pay off (Daily News & Analysis 2016).

Wipro_Most Ethical Firm
Figure 3: Wipro voted world’s most ethical firm (Source: Asian Lite News 2016)

Conclusion

Code of ethical needed to be incorporated in every organization ranging from top level management to the operational level employees.  Managers should be embedded with code of ethics in themselves and implement the practice of ethical to their employees as part of integral component of company culture. Eventually, this will create positive work environment that would gains trust and confidence from all stakeholders.

(803 words)


References

Alexander, K.L. (2016) ‘Who is This Robert Smith?: A Quite Billionaire Makes Some Noise with $20 million Gift to the African American Museum’. The Washington Post [online] 24 September. available from <https://www.washingtonpost.com/national/who-is-this-robert-smith-a-quiet-billionaire-makes-some-noise-with-20-million-gift-to-the-african-american-museum/2016/09/23/547da3a8-6fd0-11e6-8365-b19e428a975e_story.html?utm_term=.0515b8033fad> [3 February 2017]

Beauchamp, T.L. and Bowie, N.E. (2004) ‘Ethical Theory and Business’ Upper Saddle River, NJ:Prentice-Hall

Brown, M., Trevino, L. and Harrison, D. (2005) ‘Ethical Leadership: A Social Learning Perspectives for Construct Development and Testing. Organizational Behavior and Human Decision Processes, 97(2), 117-134

Brown, M.E. and Mitchell, M.S. (2010) ‘Ethical and Unethical Leadership: Exploring New Avenues for Future Research’. Business Ethics Quarterly 20(4), 583-616

Center for Ethical Leadership (2016) Our History [online] available from http://www.ethicalleadership.org/our-history.html [3 February 2017]

Ciulla, J. (2004) Is Good Leadership Contrary to Human Nature. Presentation at the Gallup Leadership Institute Summit, Lincoln, NE, USA.

Daily News & Analysis (2016) Wipro Named as World’s Most Ethical Company [online] available from < http://www.dnaindia.com/money/ report-wipro-named-as-world-s-most-ethical-company-2187802> [30 January 2017]

DesLauriers, K. (2016) ‘Why We Must Act to Protect the Arctic National Wildlife Refuge from Oil Drilling’. The Huffington Post [online] 30 November. available from < http://www.huffingtonpost.com/entry/why-we-must-act-to-protect-the-arctic-national-wildlife_us_583e0b7ae4 b08347769c04d3> [30 January 2017]

Ethisphere Institute (2016) World Most Ethical Companies [online] available from <http://worldsmostethicalcompanies.ethisphere.com/honorees/&gt; [30 January 2017]

Gelles, D. (2014) ‘A Private Equity Titan with a Narrow Focus and Broad Aims’. The New York Times [online] 10 April. available from https://dealbook.nytimes.com/2014/04/10/a-private-equity-titan-with-a-narrow-focus-and-broad-aims/?_r=0 [3 February 2017]

Kar, S. (2014) ‘Ethical Leadership: Best Practices for Success’. IOSR Journal of Business and Management, 112-116

Millman, R. and Curtis, J. (2015) ‘Toshiba faces $60m Accounting Scandal Fine’. IT Pro [online] 7 Dec. available from < http://www.itpro.co.uk/ strategy/25246/toshiba-faces-60m-accounting-scandal-fine> [31 January 2017]

Mochizuki, T. (2015) Toshiba CEO Resigns After Accounting Scandal [online] available from https://www.wsj.com/articles/toshiba-ceo-felled-by-accounting-scandal-1437468537 [3 February 2017]

Rachels (1986) ‘Kantian Theory: The Idea of Human Dignity’. The Elements of Moral Philosophy, 114-117

Rubin, R.S., Dierdorff, E.C. and Brown, M.E. (2010) ‘Do Ethical Leaders Get Ahead? Exploring Ethical Leadership and Promotability’. Business Ethics Quarterly 20(2) 215-236

Thornton, L.F. (2013) ‘7 Lenses: Learning the Principles and Practices of Ethical Leadership. Leading in Context LLC

Wipro Limited (2017) Code of Business Conduct and Ethics. India: Wipro Office