Survive in the dynamic and competitive business environment

Organizations have to digest important and traumatic alterations in order to last in the dynamic and competitory concern environment. Leadership plays a critical function in the execution of organisational alteration.

This survey will discourse how leaders would efficaciously implement such strategic alterations with specific attacks, theories and manners of leading.

The writer will associate to allow organisational illustrations and integrate academic models & A ; theoretical accounts of leading.

Specifying Leadership

Although many people have tried to specify leading there is no individual definition that would capture the kernel of leading. Daft suggested that “ Leadership is an influence relationship among leaders and followings, who intend existent alterations that reflect their shared intents ” ( Daft 2008, p.4 ) .

Yukl stated that “ Leadership is the procedure of act uponing others to understand and hold about what needs to be done and how to make it, and the procedure of easing single and corporate attempts to carry through shared aims ” ( Yukl 2006, p.26 ) .Both Daft & A ; Yukl gave similar position points and spoke about the ability of a leader to act upon followings in order to accomplish a shared aim.

For some people, leading is a trait or ability, for others it is a accomplishment or behaviour whereas still for others leading is a relationship. Therefore it is apparent that people have a broad scope of position on leading ( Northhouse, 2009 ) .

Therefore it is taken into writer ‘s consideration that leading is the ability to act upon followings to better public presentation in sequence to accomplish a shared aim. For a leader to be able to accomplish the nonsubjective he/she should possess the right attitude and right accomplishments.


Specifying Change

Dawson ( 2003, p.11 ) stated that “ there can ne’er be a cosmopolitan theory for organisational alteration, as alteration involves a motion to some hereafter province that comprises a context and clip that remains unknown ” . Whereas Matcheva ( 2010 ) mentioned that “ organisational alteration refers to the cardinal and thorough reorientation in the manner the organisation operates. ”

Organizational alteration may happen due to several internal and external environmental factors. The external factors will dwell of political, economical, societal and technological stimulation where as internal factors will be factors such as organisation ‘s direction policies and manners, systems, processs and employee attitudes. ( Buono, 2009 )

Perry ( 2006 ) argued that alteration is inevitable and therefore should be planned for and form portion of the normal procedure of direction. Burke ( 2011, p.1 ) gave a different position adverting “ Organizations change all the clip each and every twenty-four hours. The alteration that occurs in organisations is for the most portion unplanned and gradual. ”

Relationship between leading and alteration

Change has been a ambitious country and has affected many organisations. Organizations have to digest such important alteration in order to last in the dynamic and competitory concern environment. The alteration must be aligned harmonizing to organisational civilization, values, people and behaviours to promote the coveted consequences. Therefore human leading plays a cardinal function in doing alteration a success.

Such transmutation is hard and will decidedly ensue in opposition and bitterness by employees. The societal and psychological fright of alteration and the deficiency of proficient expertness will impact the alteration procedure. Therefore Leaderships should be equipped with accomplishments that would enable effectual strategic alteration.

David ( 2004 ) besides emphasized how leading could assist get the better of opposition to alter. He indicates that “ In order for World Class Organizations to last, direction must understand that alteration is inevitable and that they themselves are responsible for get the better ofing employee opposition through sound direction and change-oriented leading ” ( David, 2004 ) .

Globalization, technological alterations, cognition direction and cross boundary coaction are the four major forces impacting organisational alteration. Change could happen either in the external environment or macro environment. Organizations are in demand of advanced and originative visionaries who understand how to do determinations in such alterations Tappin ( 2009 ) .

An effectual alteration leader should hold a sense of intent and a vision, ability to manage people through tough state of affairss, ability to take answerability and duty and motivate people to accomplish several ends. Once people believe in leaders, the exhilaration will drive them to accomplish marks.

Therefore it is apparent that there is a strong relationship between leading and alteration. Leadership plays a major function in minimising opposition to alter every bit good as guaranting smooth executing of alteration.

Importance of leading in alteration

The most ambitious facet of a concern is taking and pull offing alteration. With the concern environment being capable to fast paced economic and societal alteration modern concerns need to accommodate and be flexible to last. The chief challenge in taking alteration is to pull off human resources.

As mentioned by Kotter ( 1999, p.19 ) “ More alteration demands more leading… ” Kotter emphasized the demand of a leader to pull off alteration. Nilakant & A ; Ramanarayan ( 2006 ) besides mentioned the importance of leading during each stage of alteration, chiefly the executing phase.

Kotter ( 1999, p.7 ) identified one of the most common mistakes of organisational failures during alteration as its inability to make a powerful guiding alliance. He stressed on the importance of strong line leading during alteration.

Kotter identified a 8 phase alteration procedure which consist of

Establishing a sense of urgency.

Making a guiding alliance.

Developing a vision and scheme.

Communicating the alteration vision.

Empowering wide based action.

Generating short term wins.

Consolidating additions and bring forth more alteration.

Anchoring new attacks in the civilization.

( Kotter, 1996, p.21 )

In order to follow the above stairss, an inaugural demands to be taken which demands leading. Through the above attack leaders would be able to move as a alteration agent minimising opposition to alter.

Tappin ( 2009 ) mentioned that a leader needs to develop the undermentioned features in order to pull off alteration.

A vision, and be able to pass on it to their organisations

An orientation to functioning

An entrepreneurial mentality

A committedness to uninterrupted invention

A planetary mentality

Ease and assurance with engineering

Know-how in systems believing ( a wide position of the inter-relationship of an organisation ‘s parts, instead than a narrow position that is focused on one portion or event. )

A sense of moralss and grasp of spiritualty in the workplace

A committedness to uninterrupted acquisition, personal and professional development

Tappin stated features that he believes should be present in a alteration leader. An in-depth analysis demand to be taken in order to place the most effectual attack a leader could follow when pull offing alteration.

As the features of a alteration leader have been laid down supra. It is appropriate to transport out a thorough analysis on leading manners and attacks and therefore place which manner or attack is greatly suited.

Manners of Leadership

There have been many surveies conducted to measure and place different types of leading manners. Goleman ( 2011 ) identified six leading manners. They are Coercive, Authoritative, Affiliative, Democratic, Pacesetting and Coaching. He argued that leaders who have four or more manners particularly Authoritative, Democratic, Affiliative and Coaching manners will be able to drive a better concern public presentation and keep a good clime presenting better consequences.

Harmonizing to Northouse ( 2009 ) the primary survey on manners of leading was conducted by Lewinn, Lippitt and White ( 1939 ) . The chief manners of leading they identified are Authoritative, Democratic and Lassiez-faire. Northouse ( 2009 ) mentioned that a leader may expose a combination of these manners and put to death each of these manners in a given circumstance.

Coercive manner

This manner is besides known as the Autocratic theoretical account. Harmonizing to Goleman ( 2011 ) coercive type leaders expect immediate conformity from its followings. These types of leaders are really competent in ego control, originating and accomplishing consequences. The above manner works best in crisis state of affairs where speedy alteration is required every bit good as state of affairss with job employees. But the coercive theoretical account may hold a damaging consequence on the employees hence should be used with utmost attention. It may impact the morale and feelings of the followings and may negatively impact employee motive.

In about all instances, bossy leading manner helps better organisational efficiency and contribute to the bottom line in the short-run. This betterment is nevertheless a speedy hole, coming at the cost of eroding of a company ‘s implicit in assets and puting the foundation for lasting harm in the hereafter ( Nayab, 2010 ) .

Therefore this can be considered as the least effectual manner of all leading manners since it has a negative influence on the overall clime of the organisation.

In 2007 Martha Stewart individual handedly turnaround her ailing Martha Stewart Living Omnimedia. In her we find a significant sum of contention but she continues to thrive with her organisation and is efficaciously served by her bossy manner of leading as good. But critics say that she would n’t hold reached the brink of bankruptcy and would hold achieved more if she had non followed her bossy manner ( Nayab, 2010 )

This illustration suggests that Martha was non able to make her full potency and accomplish success with her bossy manner during the turnaround because of its aggressive nature.

Authoritative Manner

An important leader is a individual who guides people towards a vision and follow organisational ends and schemes. This is a more flexible scheme where the followings are permitted to be advanced, experiment and take calculated hazard which will give the follower a sense of belonging and engagement to the organisation ( Goleman, 2011 ) .This manner of leading plants best when alteration is required in a new vision or clear way is needed.

His research indicates that this is the most effectual manner of leading. But a leader who is working with experts who are more experient will happen it hard to use this manner. The squad members may feel that the leader is seeking to rule.

Northouse ( 2009 ) besides gave a similar position on important manner of leading. He mentioned that “ Authoritarian leading is used to give way, set ends, and construction work ” . He identified positives and negatives of utilizing such manner for leading. The positives are that there is a individual to give way and lucidity to employee ‘s work which will convey about productiveness and efficiency enabling achievements of ends in a shorter period. On the other manus this manner will halter individualism and will make dependance on the leader which will ensue in subsidiaries losing involvement and going dissatisfied with their work.

Both of the point of views above can be related to Mc Gregor ‘s Theory X. The premises he made are applicable for the followings of autocratic leaders. He made three premises which are as follows.

The mean individual dislikes work and will avoid it if possible.

Because people dislike work, they need to be directed, and sometimes threatened with penalty or reminded of wagess to do them work.

The mean individual prefers to be directed, wishes to avoid duty, has small aspiration, and wants security more than pick.

( Northouse, 2009 )

The autocratic leader demands to supply way to its followings and command them. Therefore they will be in charge and take up duty to command the group.

Sing the above three writers ideas the important manner of leading would be a suitable manner of leading in pull offing alteration because during alteration the full company needs to be given proper way and their demands to be person to take duty and take enterprise by making a vision to pull off alteration.

The CEO of Microsoft Bill Gates is considered an important leader who was able to successfully travel Microsoft in the way he saw the industry traveling. He is considered as a leader with a vision who aligned Microsoft with that vision ( Authoritative Leaders,2006 )

Chief executive officer of DELL Michael Dell identified the demand of alteration in their client services section and executed a alone scheme of his ain to retain and fulfill its big client base, unlike other companies he introduced a scheme where client questions are directed to a existent human voice non a voice mail system. In an environment where the tendency is towards voice mail systems Michael Dell introduced such a system ( Franklin, 1998 )

This in fact shows his leading and vision in understanding the work his people do at all degrees every bit good as his understanding the demand for alteration harmonizing to the tendency.

Affiliative manner

Affiliative manner of leading is a more human friendly manner. It ‘s a manner which helps to make harmoniousness and build emotional bonds. Peoples come first ever. Communication is considered a cardinal component. This manner is best suited to actuate people during nerve-racking state of affairss. Even though there are certain advantages of utilizing this manner changeless usage of this manner will besides hold its drawbacks. When employees are over praised they might lose focal point and may take to hapless public presentation. Over trust on this theoretical account may take the company to neglect ( Goleman 2009 ) .

Kotter ( 1999, p.37 ) mentioned “ Communication of thoughts helps people see the demand for and the logic of alteration ” . Therefore harmonizing to his findings the affiliative manner could be considered a suited manner of leading to follow during alteration due to it concentrating on communicating as a cardinal component.

Democratic Style

The democratic manner of leading gets the followings to take part and show their sentiment. The leader builds trust, regard and committedness from the employees. Communication coaction and squad leading plays an of import function. The leader will listen to employee ‘s thoughts and concerns therefore larning how to maintain the spirit of the employees high ( Goleman2010 ) .

This manner will work best when the leader itself is unsure about the way to be taken. The drawback of such a manner is that the leader will be having eternal sentiments ensuing in trouble of doing a proper determination.

Northouse ( 2009 ) besides gave a similar position on democratic manner of leading. He said that democratic leaders ever try to handle its subsidiaries reasonably. This leader will non to be commanding instead they will listen and obtain support from all subsidiaries. This is a corporate attack of leading where the leader will be confer withing subsidiaries.

The democratic leading manner resembles the premises of Mc Gregor ‘s Theory Y. Which are as follows

Peoples like work

Peoples are self motivated

Peoples accept and seek duty.

( Northouse, 2009 )

Since people are to the full capable of making their work entirely theory Y stresses that people need n’t be controlled by their leaders as they are self motivated.

Kotter ( 2009, p.38 ) has besides mentioned the importance of engagement and engagement to get the better of opposition to alter. The democratic manner dressed ores on engagement and engagement which will assist get the better of opposition to alter. Therefore could be considered as a good manner of leading to pull off alteration.

Anne Mulcahy, CEO of Xerox besides used a democratic manner of leading. She led Xerox through a major transmutation. In the undertaking of cutting costs rapidly, she used the cognition of employees and encouraged them to give their sentiment. Together they were able to make so. ( Helliriegel, Jackson and Slocum, 2008, p.509 )

Pace puting manner

This manner focuses on developing people for the hereafter. The leader set high criterions and anticipate employees to follow them. The leader demands for excellence, hence employees will experience that they are being stretched beyond their capableness. This is best suited when speedy consequences are needed from a motivated and competent squad, but gives an overall negative impact on organisational clime ( Goleman 2010 ) .

Since alteration in a company is a long term consequence the gait puting leader may hold a negative consequence. They do more injury than good when an organisation needs long term consequences ( Chynoweth 2008 ) .

The 8th CEO of General Electric Jack Welch strongly believed in taking by illustration. He was a relentless and demanding executive and showed features of a gait puting leader. He turned the company from $ 12 billion into a $ 500 billion market capitalisation. He was renowned for his human procedure to drive alteration holding regard for each person in the procedure of alteration ( Pace Setting Leadership, 2006 )

Coaching manner

“ Personal success strictly brings accomplishment. Helping others win confers echt achievement. Passion for “ success through others ” -the common aspiration of the adviser, counsellor and manager is a beginning of synergism and a trademark of leading ” ( Goldsmith & A ; Lyons, 2006.p.1 ) .

These types of leaders train new leaders for the hereafter. The leaders help employees to larn and develop their accomplishments even if it may take clip and non accomplish organisational ends. This manner is the least used by leaders the ground being leaders non holding clip to travel through learning employees in a extremely pressurized competitory concern environment. The manner will work best where the employees are willing to better their public presentation and construct long term strengths ( Goleman, 2010 ) .

Other than Authoritarian and Democratic manner of leading Northouse identified the Lassiez-faire manner which does non resemble any of the features of the above six manners.

Lassiez Faire

Northouse ( 2009, p44 ) mentioned that “ The Lassiez-faire leader is a nominal leader who engages in minimum influence ” . This manner has no relation to either Theory X or Theory Y. The leading duties are shared by all. This mainly relies on good squad work and good interpersonal relationship accomplishments besides can be utile in concerns where originative thoughts are of import. Unlike the bossy method this manner of leading can be extremely motivational as people have control over their on the job life. ( Northouse 2009 ) .

This manner is suited for less critical countries of alteration where followings are specializers who are capable and independent. But it is arguable whether alteration could be successful with such a hands-off manner of leading.

Gucci CEO Robert Polet uses the lassiez-faire manner but within a model so that he does n’t lose control ( Gitman & A ; Daniel, 2009 ) . He may hold opted to take the above scheme due to the drawbacks of the leading manner

Theories of Leadership

Trait Theory

There are many different types of leading properties, traits and qualities ; these may differ from individual to individual. E.g. Bill Gates is known for his intelligence and for being a visionary, whereas Oprah Winfrey is recognized by the universe as a really influential leader and an first-class communicator.

As listed by Northouse ( 2007 ) some of the positive leading properties are, trust worthy, positive, dynamic, honest, promoting, motivational, physiques assurance and intelligent. However there are besides some negative properties that leaders carry with them which are asocial, egoistic, lone wolf, dictatorial and ruthless. One or more of these properties are normally really normally seen in every person although they would differ from individual to individual.

Leadership traits are the qualities that people frequently associate with leaders. As indicated by Shead ( 2007 ) the five most of import leading traits are, honest, frontward looking, competent, animating and intelligent.

Both Northouse and Shead mentioned the importance of honestness as a cardinal property to leading. When Toyota had to remember vehicles due to faulty brakes Jim Lentz, CEO of Toyota handled the state of affairs truly good by being crystalline and honest. He was brave plenty to confront a unrecorded interview. His speedy response helped minimise the harm made to Toyotas repute.

Therefore it is apparent that leaders should be equipped with the necessary accomplishments and competences to manage alteration.

Transformational Theory

Bass & A ; Riggio ( 2006, p.3 ) described transformational leaders as “ those who stimulate and inspire followings to both achieve extraordinary results and in the procedure, develop their ain leading capacity ” . Transformational leaders behave inspire and motivate people, encourages creativeness and stimulate followings, wages single attending to its followings in order to go successful ( Bass & A ; Riggio 2006 ) .

Hacker & A ; Roberts ( 2004, p.3 ) “ Transformational leading is the comprehensive and incorporate leading capacities required of persons, groups or organisations to bring forth transmutation as evidenced by measure functional betterment.

The two statements above have a common thought which suggests that the leader should be the transformer and has to move as the instigator.

Hacker & A ; Roberts gave a broader position concentrating on the person as wel the organisation. Whereas Bass & A ; Riggio gave a more specific position as in how leaders could be transformational as an person.

To be successful at transformational leading there are some constituents that were put frontward by Bass and Riggio ( 2006 ) . They mention four constituents that describe the transmutation leader and leaders are strongly required to possess these constituents in order to be successful transmutation leaders. The constituents put frontward by Bass and Riggio ( 2006 ) are ;

Idealized Influence: Leaderships should act as function theoretical accounts ; they can be counted on to make the right thing showing high criterions of ethical and moral behavior.

Inspirational motive: Leaderships must act in ways that inspire and motivate followings. Team spirit should elicit while exposing enthusiasm and optimism.

Intellectual stimulation: Stimulate follower ‘s attempts to be advanced and originative, by oppugning premises, reframing jobs and nearing old state of affairss in new ways.

Individualized consideration: Leaderships should pay attending to each single follower ‘s demand to accomplish and turn by being a manager and wise man to them. The leader besides improves communicating between the followings and besides must be a careful hearer.

Through idealized influence, individualised consideration, rational stimulation and inspirational motive, transformational leaders are likely to advance public presentation beyond outlooks and achieve tremendous alterations within persons and organisations.

The above four constituents are apparent in Sam Walton the laminitis of Wal-Mart. He showed his grasp and therefore inspired his associates and spoke to his clients by sing all of the Wall-Mart shops around the state. His attack enabled to minimise opposition to alter in Wall-marts civilization of changeless alteration ( Bergdahl, 2006 ) .

Charisma could be considered a cardinal ingredient in transformational leaders. Bass & A ; Riggio ( 2006, p.5 ) “ Transformational leading has much in common with magnetic leading, but personal appeal is merely portion of transformational leading. ”

Steve Jobs is besides considered a transformational leader. His vision, personal appeal and communicating accomplishments are portion of his success ( Krietner, 2007, p.453 ) . His vision enabled him to place his company in the altering universe market by presenting cutting border merchandises like iMac, iPad and iPhone.


The planetary competitory concern environment has changed dramatically over the past. As a consequence the demand for competitory leading to manage alteration is clear. One of the most hard duties of leading is prima alteration. This survey reveals certain leader accomplishments and abilities necessary for successful organisational alteration.

Leaderships who exercise properties such as a vision, good interpersonal accomplishments, communicational accomplishments, motivational accomplishments and supportive squad accomplishments are more effectual in driving alteration because they are the cardinal elements through which successful consequences can be achieved.

There are tonss of statements for and against each of the leading manners and attacks. Harmonizing to writer ‘s observation the lassiez-faire manner, coercive manner and gait puting manner may see least effectual whereas affiliative, training, democratic manner and transformational attack could be considered the most effectual.

There is no exact theoretical account of leading that could be used ; instead there are multiple theoretical accounts all of which have their topographic point depending on the demands of the organisation. The leader should be capable of placing the best method appropriate in a given state of affairs taking into consideration the single leader and organisational environment.

Different manners of leading will suite different types of alteration. There is no difficult and fast regulation that a certain type of leading is perfect for a given alteration state of affairs. The leading manner will depend on the organisation, single accomplishment degrees and attitude of follower ‘s. Therefore important manner and democratic manner could be recommended in general as the writer thinks it is the most appropriate because it powers committedness, communicating every bit good as way.