Emerging Global Leadership Issues - Literature review Example

STUDENT’S NAME: INSTRUCTOR’S NAME: COURSE: DATE OF SUBMISSION: Leadership within the context of a globalized environment It was Thomas Friedman who coined the famous term that the world is becoming more flat (Friedman, 2007). By this Friedman essentially meant that to effectively conduct business in the 21st century world, it would require a leader who is dynamic and flexible enough to blend the traditional kind of leadership and new revolutionary skills, knowledge and global mindset. The maxim that one thinks globally and acts locally is not effective anymore as it was a few years back; it is thinking globally and acting globally as the world becomes more of a homogeneous setting in almost all spheres of life (Friedman, 2007). According to Sheppard, Sarros, & Santora (2013) events such as the 2008 financial crisis only support the notion that countries in the world are becoming more and more interdependent on each other. No country that is a global player can isolate itself from the rest of the world, there must be certain a certain degree of interdependence of social, economic, political and environmental factors. New challenges are emerging at the global level due to factors such as shifts in global power, accelerated growth of emerging economies, growth in global networks, cultural conflicts and technological advancement. This only adds weight to the view that leadership can no longer be a solo act but rather a collaborative effort to face the challenges and take advantage of opportunities that present themselves argues Cohen (2010). In light of all this and much more, this paper is to address the research question: how has leadership changed within the context of a globalized environment over time. Emerging global leadership issues There are several issues in the world today whose impact has been more felt de to a rapidly globalizing environment. Leaders can only change to adapt to the new state of affairs in the world today. To remain static is simply refusing to admit the world is changing which simply means a leadership that does not change will only lead their followers or businesses to a failure path (Chell, 2001). Sheppard, sarros and santora (2013) identify some of these issues as; Global ethics Global tempo Global risk Global ethics A sharp growth of emerging of transitional economies such as China, Brazil, India and Russia has been recorded mainly due to cross-border mergers, penetration of information technology, free market capitalism and infusion of economic ideologies in the respective economies. However the rapid growth has also come at a cost as there are massive corruption and bribery cases in the growing economies especially where government have failed to develop efficient measures to stem such vices in the system. The inefficiencies and unethical practices have presented a challenge to both business and political leaders all over the world some of whom have responded by displaying competencies and actions to reverse the growing trend through corporate social responsibility efforts, ethical conduct in business transactions all in a view of staying true to a longer term strategic direction (Sheppard, Sarros, & Santora, 2013). Leaders who continually reiterate the commitments of their organizations to global expectations in efforts to meet their goals are better placed be globally responsible and successful. Global tempo Morrison (2000) also notes that rapid changes are occurring at the global levels which are of critical importance to the concerned stakeholders. The pace at which these changes are occurring is creating tensions in issues such as; Declining environmental sustainability Personal and national security Managerial issues as regard control of virtual and distance teams The first two issues appear as less important to leaders as they were not so much of anything to constitute an issue to worry any management, but according to Sheppard et al (2013) the pace at which the change is occurring is piling pressure on everybody concerned. It is now very important that globally present companies or even big companies within a country formulate and clearly state their position in regards to protection environment and their actions towards promoting environmental sustainability. This constitutes a very large part of a companies corporate social responsibility reports for large corporations. Security of massive amounts of data in the custody of companies is a major issue too in today’s world where fears of government interference and cyber crime are becoming more pronounced. Information technology and integration of many players in the IT infrastructure has meant that massive personal data is in the hands of companies now more than ever. A worldwide worry is whether the data is safe at the hands of the companies (Idowu & Filho, 2009). Globalization pace requires that companies not only hire competent and highly talented workforce to face off with the cutthroat competition in the free market capitalist environment, but also enhance virtual interaction and collaboration to achieve results due to dispersed business units all over the world (Suutari, 2002). Computer aided technologies have particularly come in handy to ensure this is possible. Technologies such as email, Skype, video-conferencing and instant messaging have had a tremendous if not pivotal contribution into the high speed of globalization in the world today by making it possible for business teams to communicate with each other over long distances and time zones (Svensson, 2001). According to Harvey & Robinson (2008) challenge to leadership is how to adjust to the 24 hour operational availability which is a key characteristic a globalised entity. At the same time how does a company or an organization respect cultural diversity? How can it as well achieve synergy in such a diversified environment with heterogeneity of global cultures with different values, norms and beliefs? This has forced leadership al over the world to not only be a ware; of this diversity but actually formulate clear policies of handling diversity in a productive manner that will achieve organizational effectiveness. A challenge too is according individualized management of virtual staff to ensure they mirror the expectations of the company even though they are a distance away from the management. The importance of this is especially critical where team membership at the global level s increasing rapidly or cultural diversity is very high (Marti, 2007). Friedman (2007) holds that in a fast changing market place, it is vital that decisions are made fast to remain competitive in the market. It is a fact that decisions are advised by social issues, technical knowledge and environmental awareness. Leaders cannot achieve this all by their self in all global stations where their organizations are presented. This then calls for a collaborative leadership as opposed to a one man running the show scenario. Global risk Global risk presents itself in different and diverse ways. Some of the major risks are political, financial and health related risks. The ones that feature prominently on the list of the critical risk factors of globalization of concern to leadership are financial, security and political risks. The occurrence of these risks has far-reaching or even catastrophic consequences on global economies. The occurrence of these risks may point to inadequacy in strategies, coordination and emergency management. It may also be as a result of difficulties in implementing shared leadership responsibilities Sheppard et al (2013). It is therefore beyond conviction that leaders demonstrate definitive decision making in light of prevailing global adversities. An innovative and proactive approach is the only way that cross-border business and risk leadership can achieve success in responding to the possibility that such risks can occur. In addition to the above highlighted factors there some new trends that are changing the traditional setting at a rapid pace and thus necessitating a dynamic leadership approach to adapt to the new trend. Some of these include; Macroeconomic environment The world economic situation has remained constant through out the 20th century at least according to the views of the few who didn’t notice the economic coups being staged especially by Asian nations and Latin America. Asia and most specifically economic powers such as Japan, china, south-Korea and Singapore have dramatically turned around their economies over the past three decades or so to appear on the global economic power map. Currently the Asian bloc excluding Japan accounts for 15% of the total global GDP a trend that is expected to be sustained until the GDP hits 30% (Cohen, 2010). Essentially then the center of economic activities will change not only globally but regionally as well. Regions such as Asia, Latin America, Eastern Europe and Africa are poised to be the next growth frontier due to their high youthful populations and abundance of resources. The western nations will experience less economic growth mainly due to an aging population (Cohen, 2010). Technological advances and capital markets developments will also contribute to the shift in global economic balance. With such a trend global leaders in every region have to consider within which bracket they fall and how can they mobilize resources to take advantage of the opportunities available or tackle challenges and turn threats into opportunities (Ireland & Hitt, 2001). Environmental trends By the turn of the millennium, the world had collectively come to the conclusion that the actions and inactions of the global community is adding to global environmental degradation. Emission of carbon and other harmful has particularly been blamed for global warming and other respiratory diseases. Depletion of forests and water bodies has also been a key issue in environment debate (Idowu & Filho, 2009; Crittenden, Crittenden, & Pitt, 2011). Crittenden et al (2011) note that these issues cannot in any way be ignored by the leadership either in political or business positions all over the world. It has changed how leaders make decisions as they have to actively engage in environmental conservation either through avoiding contributing to environmental degradation or taking action to promote environment conservation. Business and industry There are changing market regulations such as free capitalist markets that have opened up competition and necessitated the need to innovate and remain relevant. New technologies and models of doing business have also emerged to change how businesses market their products, manage their human resource and engage in production. Corporate borders have become even more unclear as interlinked markets, suppliers and producers all find themselves in common places but with new challenge (Joyner, 2009). In light of this, leaders today are adopting algorithmic decision making techniques to overcome the challenge of a complex global setting. Scientific management is no longer an option but a requirement to get into the playing field let alone play the game (Hino, 2006). In regard to all these trends and changing factors, one would ask; how then should leaders change to respond to the rapid globalization that is changing the all too familiar playing field? It calls for a whole new leadership mindset as regards dealing with the globalised business environment as you don’t have to operate in another country to be affected by globalization; the effects are felt even by the smallest companies within a country due to exposure to global factors and the opening up of a free capitalist market (Cohen, 2010). Some of the ways that the leadership mindset has to follow include but not limited to the following: Thinking globally Countries are becoming more open to embracing each other in different areas particularly in economic development. It calls for a leader to think globally in order to adequately face the challenges facing their organizations as well as deal with competition at the global level where competition has made people and organizations more innovative and efficient. Thinking alone cannot ensure results but also acting globally by embracing global best practices in areas of specialization will also go a long way in ensuring competitiveness of business as well as taking advantage of globally available knowledge to benefit businesses (Harvey & Robinson, 2008). Thinking globally also means taking into consideration global factors whenever a strategy is being developed and also when implementing it. a poorly formulated strategy that is only advised by local factors, is more likely to fail terribly when global challenges such as opened up markets and increased competition set in. it is vital then that leaders make decisions basing on global factors since the globe is becoming more and more connected beyond national borders (Svensson, 2001). Appreciating cultural diversity As people travel and interact with each other due to efficient transport systems and improved communication channels conflicts are set to emerge due to cultural differences. Interaction at this age is not optional but vital to ensure growth and development of a country since economies and societies in general are very much interdependent as globalization continues to become more of a reality than a vision (Bass & Avolio, 1994). The situation calls for creativity and intelligence from business and political leaders to understand how different cultures can come together and focus towards a common goal even though they have different cultural backgrounds. This is more of concern particularly in multinational firms whose image in the face of the world is very important and also the success of the firm is determined by how the management can be able to utilize diverse talents in people from different backgrounds (Harvey & Robinson, 2008). It is only through achieving harmonious working relations where cultural and background differences are used as strengths rather than weakness to an organization. Leaders should be at the forefront to protect and promote diversity in their organization. It shows the kind of values that they and the organization stand for. Not for the purposes of pleasing the public but rather to send a message to employees that it’s all about sticking together and forging ahead towards goal and objectives set by the company. It speaks a lot to shows everyone that their contribution will be highly valued (Chell, 2001). Embracing technology Technology in areas such as computing, communication and production is a critical element to ensure global presence as well as a gaining competitive edge. As businesses grow the main challenge to any leader remains how to stay close to the final consumers and also the distance virtual staff. Embracing technologies such as social media to establish global presence is a positive move to enhance visibility in a world where social media such as twitter and FaceBook are overtaking the traditional media as people get access to internet thorough mobile phones (Marti, 2007). Best production technology and methods as well as embracing international standards are all important issues that should shape how leaders perceive their business processes in the wake of a rapidly globalizing business environment (Iqbal, 2011). It goes without saying that communication technology has played a very pivotal role in spread of information all over the world and is continuing to do so. Technology is used to solve problems and take advantage of opportunities. Leaders have to manipulate technology to work for them rather than remain rigid towards change in their environment (Marti, 2007). Building partnerships This is becoming an important strategy to help businesses penetrate new markets where resources are to be committed and specific knowledge is necessary (Chell, 2001). Leaders have to understand the process of acquiring the best partners out there and also how to maintain a mutually beneficial relationship with the partners. Sharing leadership As the setting becomes more complex there is need for leaders to know that they cannot run the show on their own. It has to be a team effort. There is a growing need to acquire and maintain a highly talented team to compete at the global level (Morrison, 2000). Focus should then be on ensuring the team is continuously motivated to give their best and that they are given a chance to share into the story. Leadership then becomes a facilitative role and shifts from the big man idea of a single man who decides what the team does and what knowledge is utilized for the success of the team. Sharing leadership is one important characteristic of a charismatic leader who inspires his/her people by making them believe in their capability no matter what position they are in the organization. Conclusion The world is becoming more flat as Thomas Friedman once said. To say Friedman was wrong or exaggerating the situation will be inappropriate as more and more companies are getting into the global scene to take advantage of the opportunities that are presenting themselves. Trade and interaction barriers are being solved through legislations and technologically through the internet and computing which have had the greatest in the 20th and 21st centuries. Travelling is even more simple and cheap. Due to the close knit nature of the global family, common issues such as security and climatic change are receiving equal attention in every corner of the world. This whole new set u where the world is becoming a “village” has brought with it challenges and opportunities for countries and businesses. Leaders have to therefore develop a new mindset to tackle the problems and take advantage of the opportunities to grow. References Bass, B., & Avolio, B. (1994). Improving Organizational Effectiveness Through Transformational Leadership. SAGE. Chell, E. (2001). 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