The paper "Business Environment Is Changing So Fast due to Globalization and Technology" is a great example of business coursework. In recent years, leadership has become a very important theme among business managers. The main area has been how to be an effective leader amid the rapid changes taking place in the business environment. In a nutshell, leadership style has changed a great deal and rigid form of leadership used before the 21st century has no place in current arrangements. Globalization and technology are completely changing the style of management and people who left management in the 20th century would get a rude shock of how the world has changed (Pease, 2008).
The change is taking place so fast that different strategies and approaches are required to sustain change. Therefore, this essay will argue that there is no one effective leadership style that should be used by a leader (s) in today’ s organizations. To put this context in perspective, the essay will analyze two theories of leadership consisting of contingency and situational theories. The essay will use Sir Richard Branson and Virgin Airline to provide an illustration. According to Daft (2005), the existence of up to 350 definitions of leadership itself is a culmination that there is no one effective leadership style that should be used by a leader(s) in today’ s organizations.
However, there is one universally accepted definition of leadership. It refers to leadership as social influences a person has over the other which include support and aid to realize a common goal (Daft, 2005). Over the past, business managers have tried to use various theories of leadership to gain competitive advantage and improve the share of the market.
In most cases, these managers have used one of the existing theories including; great man theory, behavioral theory, and management theory, situational and contingency. Since the business world has been changing so fast, they have been compelled to drop the current theory for another in seeking success. The process of changing one theory for another is not just frustrating, but also greatly affects internal factors of an organization. Therefore, management experts currently advise leadership to embrace contingency and situational theories of management. According to Nohria & Khurana (2010), contingency theory holds that no style of leadership is appropriate on its own.
Theorists in this school of thought contend that in this leadership style, it is the contingent like situation and quality of the followers which determines which style to adopt (Daft 2005). In a nutshell, the theory hypothesizes that there no one suitable method of leading since the internal and external forces needs a leader who can settle in a different situation. In this research carried out in Ohio State University, effective leaders who use contingency, they are considered leaders who have interpersonal skills and create good rapport demonstrating concern and support for subordinates (Nohria & Khurana, 2010). On the other hand, effective leaders create organizational structure leadership that states roles and assignment to make sure tasks are completed within the set time.
Kerno (2008) pines that at present, numerous business owners pay less focus on the business leaders who create rigid hierarchical structures. Other factors of contingency that a leader needs to consider include technology, suppliers, customers and competitors and consumer preferences.
For instance, technology is very dynamic and changes every time. Hence, while still holding in old forms of strategy, they should also think of new technology and how it can improve their work. For instance, Virgin Airline Company still uses ticketing; they have also implemented online booking to make reservations for their customers. Also, they have fliers and billboard where customers can get information about flights; the same information can be acquired when one browses through their website.
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