Changes in Leadership within a Globalised Environment - Literature review Example

Changes in Leadership within a Globalised Environment Name Course Tutor’s Name Date: Introduction Throughout the world, leadership has had to undergo major changes in response to new challenges and opportunities in the global environment. Among the double-sided (i.e. in terms of providing both opportunities and challenges to leaders) factors in the globalised environment which have led to changes in leadership within a globalised environment include technology, the global workforce, and diverse cultures (Wanasika, 2008). This paper will discuss the manner in which leadership has changed within the globalised environment over time. The paper also profiles the leadership and communication styles of Virgin Group’s CEO, Sir Richard Branson and concludes by observing that more changes in leadership are likely to occur going forward, especially as the world becomes more interlinked through new developments in information and communication technologies. Leadership in a global context and the changes therein Leadership is generally referred to as a social influence process (Prewitt, Weil & McClure, 2011). Unlike management, leadership is not dependent on title, privilege or the position of a person; instead, it is constituted by learnable, understandable and observable sets of skills, which can be acquired and mastered by anyone willing to invest time and effort towards becoming a leader (Yulk, 1998). Additionally, and as indicated by Gill (2003), leadership is about showing and paving the way for followers, and “using personal power to win the hearts and minds of people to work together towards a common goal” (pp. 309-310). This paper recognises the fundamental attributes of leadership as accountability, communication and holistic thinking as suggested by Prewitt et al. (2011). It further recognises the foundational values of leadership as honest and ethical behaviour as suggested by Prewitt et al. (2011). Although globalisation is not an entirely new phenomenon, this paper refers to globalisation as the linear process characterised by “enlargement into supraterritorial places”, which occurred from the 1960s up-to-date (Estok & Bzdilova, 2011, p. 45). Before the 1960s, Estok and Bzdilova (2011) note that there were two other phases of globalisation, which this paper will not delve into. Estok and Bzdilova (2011) notes that the period between the 1960s and now has been characterised by an increase in global organisation, politics, communication and thinking, which has been made possible by expansion of global markets, the Internet, television, optic cables, satellites and electronic communication (Scholte, 2000). As noted by Prewitt et al. (2011) however, globalisation has overwhelmed leaders because many lack the skills and knowledge necessary to deal with and understand the different communities in the global environment. Prewitt et al. (2011) further observe that many global organisations spend time and resources training employees on how to deal with new technologies, and in the process, they ignore the need to develop the necessary leadership skills. Yet, it has been suggested that visionary leadership, which understands and appreciates diversity, is what the global environment needs (Prewitt et al., 2011). Cultural diversity and relationship competence One of the crucial changes that have occurred in leadership in the global environment has been cited as the ability to understand people from different regions and provide the leadership needed for each of the represented cultures. According to Carey et al. (2004), different cultures are complicated and dynamic and they are often contradictory in their beliefs and values. From the 1960s onwards, leaders, especially those that have had to deal with a culturally diverse workforce, have had to adopt a more flexible and collaborative form of leadership (Carey et al. 2004). Manning (2003) identifies relationship competence as another essential skill that global leaders have had to adopt in the wake of globalisation. Relationship competence is especially relevant because it helps leaders to develop the cultural sensitivity needed to work on international assignments. Notably, relationship competence takes time and effort to develop, and as Manning (2003) notes, global organisations have learned (and are still learning) to evaluate for, train and develop relationship competence in their global leaders. In the past, leaders arguably needed to possess the organisational and technical expertise required to work in their local environments. Unlike present times, relational competence was relevant for purposes of developing good leader-follower relationships in the same cultural setting (Manning, 2003). Global organisations now utilise attachment theory more in analysing leaders’ experiences in different business environments, and by doing so, they can ascertain which leaders are more secure and relationship oriented when dealing with people from different cultures (Manning, 2003). Morrison (2000) further notes that global organisations are now investing more in training leaders in order to equip them with the cultural competence needed for working with diverse cultures. Meritocracy in leadership Adler, Brody and Osland (2000) also observe that a culture of meritocracy has infiltrated leadership, and as such, the previous mindset that perceived men as better leaders compared to women is slowly being wiped away. Adler et al. (2000) note that by recognising women as able leaders just as their male counterparts, global organisations are able to utilise behaviours that are linked to women. Such behaviours include interpersonal skills, charisma and expertise. Both male and female leaders have also been found to possess behaviours and traits associated with leadership, which include: self-reliance, assertiveness, and risk-taking (Adler et al., 2000). Even before the present phase in globalisation started, Prewitt et al. (2011) note that leaders were expected to “create change and set direction” for their followers (p. 19). The same expectations are placed on global leaders, who, in order to create the change and set the direction that the globalised environment requires, must have competencies to inspire commitment, trust and followership among the different cultures and peoples in the globalised environments. Prewitt et al. (2011) however note that some characteristics like courage, persistence, discipline, honesty, integrity and upholding high ethical standards have always been at the foundation of leadership and as such, must be seen to continue even in the globalised environment. In the past, leaders needed to have as much knowledge as possible (Wyman, 2007, p. 2). While this is still true today, it has been noted that globalisation requires leaders to exist and thrive “on the basis of their interpersonal relationships, behaviour and flexibility, as opposed to what they know” (Wyman, 2007, p. 2). The foregoing means that globalisation requires leadership skills that focus more on the leader’s ability to shape events and processes in a manner that fits different organisational scenarios and circumstances. In other words, there has to be synergy between the leader, context and followers. Unlike the past where successful leaders were perceived and treated as heroes, Wyman (2007) indicates that globalisation now requires leaders to define their value by working and succeeding within established processes. Notably, such processes are essential for a performance-based culture, which ideally should be the hallmark of successful global organisations (Wyman, 2007). The need to have multilingual and multicultural capacities is also a change that has occurred in leadership especially because global leaders need to communicate to people from different cultures and languages. In addition to this, Wyman (2007) observes that leadership now needs to be founded on a global mindset, diversity and global responsibility. To succeed in having a global mindset, leaders are now required to take part in lifelong learning, understand the global opportunities and challenges, and transfer identified best practices across the different cultures presented in the global environment. To develop a capacity to value diversity, leaders are required to acquire cultural awareness, respect different cultures, and balance different needs in the diverse workplace. Finally, leading with global responsibility requires leaders to persevere during adversity, base their decisions on what different customers value, and always base their actions on integrity (Wyman, 2007). As would be expected, not all leaders live up to the aforementioned concepts. However, and as indicated by Daglish and Miller (2010), leadership in multicultural organisations which are commonplace in the global environment is characterised by: structural integration, leadership diversity, pluralism, organisational identification, intergroup harmony, and integrated informal networks. Current-day leadership therefore has to have the capacity to enhance all the foregoing characteristics in the organisations they lead. Another change relates to virtual leadership, which was probably unheard of before the 1960s. According to Wyman (2007), leaders in the global environment have to adapt to the boundary-less and virtual mode of leadership, whereby, they are required to offer leadership to people they cannot see. The leadership and communication styles of Richard Branson of Virgin group As the chief executive officer of the Virgin Group, Sir Richard Branson’s leadership style has been described differently by different analysts and commentators. One of the overriding themes in the words that define Branson’s leadership styles is the term ‘transformational’. Stuart, Sarow and Stuart (2007) for example indicate that Branson’s style of leading with inspiration, and people’s perception of him as a model of ethical leadership makes him a transformational leader. The three authors further indicate that transformational leadership “involves developing communications that motivate and nurture the values of both leaders and followers” (Stuart et al. 2007, p. 257). Arguably, transformational leaders are effective communicators, and Branson has been indicated as one such master communicator. As a matter of fact, so good is Branson as a communicator that in 2010, he was named the best communicator beating other renowned leaders like Nelson Mandela and Barack Obama (Accounting Web, 2010). Previously, Branson has been named as the most inspirational boss (hence supporting the earlier assertion that he is a transformative leader), the best leader, and the best heard CEO in business (Accounting Web, 2010). In an article published in Forbes.com, it is revealed that unlike some leaders who prefer the boardroom and PowerPoint presentations, Branson prefers to have conversations with real people who he can establish eye contact with. He also prefers to present simple short pitches (Gallo, 2012). The business mogul further indicates that he communicates confidently, concisely and clearly, hence ridding his communication of jargon and confusion. But perhaps the most critical elements in Branson’s style (especially in relation to the global nature of the Virgin Group businesses) as suggested by Gallo (2012) are: the leader’s charisma, his bold vision, his ability to communicate and inspire the Virgin teams, and his conviction that he as a leader should have fun leading and his followers should have as much fun. Arguably, Branson’s label as a transformative leader came about because he successfully managed to change people’s perceptions about business. As indicated by Gallo (2012), business to Branson does not have to be routine-based and dreary. Branson reportedly lives by the mantra that if one cannot have fun doing business, then his/her efforts are not worth it. Branson’s style of communication according to Gallo (2012) is simple, concise and clear, hence leaving no room for confusion, boredom or misunderstandings. Conclusion This essay has discussed changes in leadership in the third phase of globalisation, which is indicated as having started in the 1960s and still goes on to date. Globalisation as is known in this third phase is characterised by enhanced connectivity, trade and communications predicated on such factors as the Internet, enhanced information and communication technologies and faster and more convenient transport networks. To meet the challenges and opportunities of the global environment, leadership has had to undergo changes, which include the introduction of meritocracy in leadership regardless of gender, relationship competence for purposes of handling the diverse cultures, the need to develop multilingual and multicultural leadership capacities, and the capacity to practice virtual leadership. The essay has also profiled Virgin Group’s leader and CEO Richard Branson’s leadership and communication style, and indicated that he is a transformational leader who adopts a clear, concise, and confident style of communication to inspire and lead employees of the Virgin Group. Perhaps other leaders have several lessons to learn from Branson especially considering that the Virgin Group continues being successful, despite its leaders laid-back style of leadership, which some critics find too risky to adopt. Overall, it is worth noting that globalisation has brought about changes in leadership, which makes leaders more prepared to work with diverse people from diverse cultures and convictions. Going forward, the changes are likely to continue as the world becomes more integrated and the spatial differences are reduced further by new developments in information and communication technologies. Leaders who want to successfully inspire followers towards specific goals must therefore be prepared to adapt to current and future changes in the global environment. References Accounting Web. (2010). Richard Branson Named Best Communicator. Retrieved September 23, 2013, from http://www.accountingweb.co.uk/topic/time-out/richard-branson-named-best-communicator/432152. Adler, N., Brody, L., & Osland, J. (2000). The Women’s Global Leadership Forum: Enhancing One Company’s Global Leadership Capability. Human Resource Management 39(2/3), 209-225. Carey, C., Newman, P. & McDonough, L. (2004). Global Leadership Capability: An Asia-Pacific Perspective. Performance Improvement, 43 (8), 13-18. Dalglish, C. & Miller, P. (2010). Leadership: Understanding its Global Impact. Prahran, Vic.: Tilde University Press Estok, G. & Bzdilova, R. (2011). Globalisation – An Old or a New Phenomenon? In The scale of globalization. Think Globally, Act Locally, Change Individually in the 21st Century, 43-48. 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