Concepts of leadership


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Concepts of leadership

  1. 1. LEADERSHIP IN THE ERA OF GLOBLIZATION Prepared by Sajid Kanner P-10 and Jamsher P-08 Student of MPA(2 nd semester) IMS department UoB, Quetta. 1
  2. 2. Leadership in the era of globalization Prepared For Sir Muhammad AliPrepared by Sajid Kanner P-10 and Jamsher P-08 Student of MPA(2 nd semester) IMS department UoB, Quetta. 1 st October 2011 2
  3. 3. Leadership in the era of globlizationLeadership section prepared By: Sajid KannerLeadership in era of Globalization prepared By: Jamsher 3
  4. 4. To my teacher Muhammad Ali With love and respect Sajid kanner & Jamsher 4
  5. 5. Dedication“To All The Thoughtful That imagine The Concept And BringIt Into Physical Reality And More Than our Aspect I Want ToThanks My Teachers And My Friends Who Really Helped MeTo Complete My Assignment.” 5
  6. 6. AcknowledgementFirst of all, I am grateful to Almighty ALLAH who gave uscourage and chance to complete this Assignment. All the praiseis for ALLAH the most merciful and beneficial, and his HolyProphet Hazrat Muhammad (PBUH).We would like to express our gratefulness and appreciate for theuntiring efforts, hard work and positive approach demonstratedby my teacher who gives us this Assignment. 6
  7. 7. Executive SummaryLeadership in globalization era is running an organization wasequivalent to conducting a symphony group. But I dont thinkthats quite it; its more like jazz. There is more improvisation.Good leaders are made not born. If you have the desire and willpower, you can become an effective leader. Good leaders developthrough a never ending process of self-study, education,training, and experience. 7
  8. 8. AbstractThe purpose of this assignment is to explore the leadership in theera of globalization on organization performance of leader. Ourtopic objective there a difference in the leadership andglobalization so that we have revise the leadership and itsdifferent tools and the globalization the study our report showsthat the today the world become global village so the leadershipis necessary in the globalization era so that it can effectspositively impacts the organization performance becauseeffective process comes from leadership.. 8
  9. 9. Concepts of LeadershipI used to think that running an organization was equivalent to conducting a symphonyorchestra. But I dont think thats quite it; its more like jazz. There is more improvisation. —Warren Bennis. Good leaders are made not born. If you have the desire and will power, youcan become an effective leader. Good leaders develop through a never ending process of self-study, education, training, and experience. This guide will help you through that process.To inspire your workers into higher levels of teamwork, there are certain things you must be,know, and, do. These do not come naturally, but are acquired through continual work andstudy. Good leaders are continually working and studying to improve their leadership skills;they are NOT resting on their laurels.Definition of LeadershipThe meaning of a message is the change which it produces in the image. — KennethBoulding in the Image: Knowledge in Life and Society. Before we get started, let’s defineleadership. Leadership is a process by which a person influences others to accomplish anobjective and directs the organization in a way that makes it more cohesive and coherent.This definition is similar to Northouses (2007, p3) definition — Leadership is a processwhereby an individual influences a group of individuals to achieve a common goal.Leaders carry out this process by applying their leadership knowledge and skills. This iscalled Process Leadership (Jago, 1982). However, we know that we have traits that caninfluence our actions. This is called Trait Leadership (Jago, 1982), in that it was oncecommon to believe that leaders were born rather than made. These two leadership types areshown in the chart below (Northouse, 2007, p5):While leadership is learned the skills and knowledge processed by the leader can beinfluenced by his or hers attributes or traits, such as beliefs, values, ethics, and character.Knowledge and skills contribute directly to the process of leadership, while the otherattributes give the leader certain characteristics that make him or her unique. 9
  10. 10. Types of LeadershipMany attempts have been made to classify leaders. According to H.T Mazumdar there arethree kinds of leadership –traditional, bureaucratic and charismatic. The traditional leader getshis authority through the traditional status ascribed to him. Thus the Brahmin is the traditionalleader of Hindu society. The bureaucratic leader gets his authority and power throughdelegation from election or from appointment. The charismatic leader creates his ownauthority. He may be a party leader, a religious leader, a social leader or a revolutionaryleader. Bogardus has mentioned the following kinds of leadership. Direct and indirectleadership. Social, executive and mental leadership, partisan and scientific leadership.Prophets, saints, experts and boss. Autocratic, charismatic, paternal and democraticleadership. The three most significant types of leaders today are the administrator, the expertand agitator. With the extension of state activity and political controls the power ofgovernment bureaucracy has tremendously increased. The complicated industrial and militarysystems cannot operate without the expert. The agitator in time of grave economic insecurityand widespread anxiety about the future political order assumes an important role in masssociety such as ours.Four Factors of LeadershipThere are four major factors in leadership (U.S. Army, 1983):LeaderYou must have an honest understanding of who you are, what you know, and what you cando. Also, note that it is the followers, not the leader or someone else who determines if theleader is successful. If they do not trust or lack confidence in their leader, then they will beuninspired. To be successful you have to convince your followers, not yourself or yoursuperiors, that you are worthy of being followed.FollowersDifferent people require different styles of leadership. For example, a new hire requires moresupervision than an experienced employee. A person who lacks motivation requires adifferent approach than one with a high degree of motivation. You must know your people!The fundamental starting point is having a good understanding of human nature, such asneeds, emotions, and motivation. You must come to know your employees be, know, and doattributes. 10
  11. 11. CommunicationYou lead through two-way communication. Much of it is nonverbal. For instance, when you“set the example,” that communicates to your people that you would not ask them to performanything that you would not be willing to do. What and how you communicate either buildsor harms the relationship between you and your employees.SituationAll situations are different. What you do in one situation will not always work in another.You must use your judgment to decide the best course of action and the leadership styleneeded for each situation. For example, you may need to confront an employee forinappropriate behavior, but if the confrontation is too late or too early, too harsh or too weak,then the results may prove ineffective.Also note that the situation normally has a greater effect on a leaders action than his or hertraits. This is because while traits may have an impressive stability over a period of time, theyhave little consistency across situations (Mischel, 1968). This is why a number of leadershipscholars think the Process Theory of Leadership is a more accurate than the Trait Theory ofLeadership.Various forces will affect these four factors. Examples of forces are your relationship withyour seniors, the skill of your followers, the informal leaders within your organization, andhow your organization is organized.Bass Theory of LeadershipBass theory of leadership states that there are three basic ways to explain how people becomeleaders (Stogdill, 1989; Bass, 1990). The first two explain the leadership development for asmall number of people. These theories are: Some personality traits may lead people naturallyinto leadership roles. This is the Trait Theory.A crisis or important event may cause a person to rise to the occasion, which brings outextraordinary leadership qualities in an ordinary person. This is the Great Events Theory.People can choose to become leaders. People can learn leadership skills. This is theTransformational or Process Leadership Theory. It is the most widely accepted theory todayand the premise on which this guide is based.Be Know DoThe basis of good leadership is honorable character and selfless service to your organization.In your employees eyes, your leadership is everything you do that effects the organizationsobjectives and their well-being. Respected leaders concentrate on (U.S. Army, 1983): • what they are [be] (such as beliefs and character) • what they know (such as job, tasks, and human nature) • What they do (such as implementing, motivating, and providing direction). 11
  12. 12. • What makes a person want to follow a leader? People want to be guided by those they respect and who have a clear sense of direction. To gain respect, they must be ethical. A sense of direction is achieved by conveying a strong vision of the future.The Two Most Important Keys to Effective LeadershipAccording to a study by the Hay Group, a global management consultancy, there are 75 keycomponents of employee satisfaction (Lamb, McKee, 2004). They found that:Trust and confidence in top leadership was the single most reliable predictor of employeesatisfaction in an organization.Effective communication by leadership in three critical areas was the key to winningorganizational trust and confidence:Principles of Leadership:To help you be, know, and do, follow these eleven principles of leadership (U.S. Army,1983). The later chapters in this Leadership guide expand on these principles and providetools for implementing them:Know yourself and seek self-improvement - In order to know yourself, you have tounderstand you are being, known, and do, attributes and seeking self-improvement, that’smeans continually strengthening your attributes. This can be accomplished through self-study, formal classes, reflection, and interacting with others.Be technically proficient - As a leader, you must know your job and have a solid familiaritywith your employees tasks.Seek responsibility and take responsibility for your actions - Search for ways to guideyour organization to new heights. And when things go wrong, they always do sooner or later— do not blame others. Analyze the situation, take corrective action, and move on to the nextchallenge.Make sound and timely decisions - Use good problem solving, decision making, andplanning tools.Set the example - Be a good role model for your employees. They must not only hear whatthey are expected to do, but also see. We must become the change we want to see - MahatmaGandhiKnow your people and look out for their well-being - Know human nature and theimportance of sincerely caring for your workers.Keep your workers informed - Know how to communicate with not only them, but alsoseniors and other key people.Develop a sense of responsibility in your workers - Help to develop good character traitsthat will help them carry out their professional responsibilities.Ensure that tasks are understood, supervised, and accomplished - Communication is thekey to this responsibility. 12
  13. 13. Train as a team - Although many so called leaders call their organization, department,section, etc. a team; they are not really teams...they are just a group of people doing their jobs.Use the full capabilities of your organization - By developing a team spirit, you will beable to employ your organization, department, section, etc. to its fullest capabilities.Attributes of Leadership:If you are a leader who can be trusted, then those around you will grow to respect you. To besuch a leader, there is a Leadership Framework to guide you:BE KNOW DO • BE a professional. Examples: Be loyal to the organization, perform selfless service, and take personal responsibility. • BE a professional who possess good character traits. Examples: Honesty, competence, candor, commitment, integrity, courage, straightforwardness, imagination. KNOW the four factors of leadership — follower, leader, communication, situation. • KNOW yourself. Examples: strengths and weakness of your character, knowledge, and skills. • KNOW human nature. Examples: Human needs, emotions, and how people respond to stress. • KNOW your job. Examples: be proficient and be able to train others in their tasks. • KNOW your organization. Examples: where to go for help, its climate and culture, who the unofficial leaders are. • DO provide direction. Examples: goal setting, problem solving, decision making, planning. • DO implement. Examples: communicating, coordinating, supervising, evaluating. • DO motivate. Examples: develop morale and esprit de corps in the organization, train, coach, counsel.EnvironmentEvery organization has a particular work environment, which dictates to a considerabledegree how its leaders respond to problems and opportunities. This is brought about by itsheritage of past leaders and its present leaders.Goals, Values, and ConceptsLeaders exert influence on the environment via three types of actions: • The goals and performance standards they establish. • The values they establish for the organization. • The business and people concepts they establish.Successful organizations have leaders who set high standards and goals across the entirespectrum, such as strategies, market leadership, plans, meetings and presentations,productivity, quality, and reliability. 13
  14. 14. Values reflect the concern the organization has for its employees, customers, investors,vendors, and surrounding community. These values define the manner in how business willbe conducted.Concepts define what products or services the organization will offer and the methods andprocesses for conducting business.These goals, values, and concepts make up the organizations personality or how the organization isobserved by both outsiders and insiders. This personality defines the roles, relationships, rewards,and rites that take place.Roles ad RelationshipsRoles are the positions that are defined by a set of expectations about behavior of any jobincumbent. Each role has a set of tasks and responsibilities that may or may not be spelledout. Roles have a powerful effect on behavior for several reasons, to include money beingpaid for the performance of the role, there is prestige attached to a role, and a sense ofaccomplishment or challenge.Relationships are determined by a roles tasks. While some tasks are performed alone, mostare carried out in relationship with others. The tasks will determine who the role-holder isrequired to interact with, how often, and towards what end. Also, normally the greater theinteraction, the greater the liking. This in turn leads to more frequent interaction. In humanbehavior, its hard to like someone whom we have no contact with, and we tend to seek outthose we like. People tend to do what they are rewarded for, and friendship is a powerfulreward. Many tasks and behaviors that are associated with a role are brought about by theserelationships. That is, new task and behaviors are expected of the present role-holder becausea strong relationship was developed in the past, either by that role-holder or a prior role-holder.The Process of Great Leadership:The road to great leadership (Kouzes & Posner, 1987) that is common to successful leaders:Challenge the process - First, find a process that you believe needs to be improved the most.Inspire a shared vision - Next, share your vision in words that can be understood by yourfollowers.Enable others to act - Give them the tools and methods to solve the problem.Model the way - When the process gets tough, get your hands dirty. A boss tells others whatto do; a leader shows that it can be done.Encourages the heart - Share the glory with your followers hearts, while keeping the painswithin your own. 14
  15. 15. Leadership versus Power:The concepts of power and leadership have much in common. Certain people areleaders because they exercise power. It is unthinkable that a leader should not havepower. Consequently the exercise of influence is a central part of most definitions ofleadership. According to La-Piere, leadership is a behavior that affects the behavior ofother people more than their behavior affects that of the leader. Pigor also saysleadership is a concept applied to the personality to describe the situation when apersonality is so placed in the environment that it directs the feeling and insight andcontrols others in pursuit of a common cause. According to Allen leadership is theactivity of persuading people to cooperate in the achievement of a common objective.Terry defines it as the activity of influencing people to strive willingly for mutualobjectives.Leadership always involves attempts on the part of a leader to affect the behavior of afollower or followers in a situation. Power is not equivalent with influence or with initiatingchange in another person’s behavior without regard to the situation in which it occurs. A newborn infant can influence and change the behavior of his parents but this influence is notequivalent with power in the family.Functions of LeadershipThere is no unanimity of opinion as to what the functions of the leadership are. This isbecause detailing of functions depends on one’s general concept of leadership. Leadershipfunctions are related to goal achievement and to the maintenance and strengthening of thegroup. Functions in the former category, instrumental to achieving the goals of the groupinclude making suggestions for action, evaluating movement towards the goal, preventingactivities irrelevant to the goal and offering effective solutions for goal achievement.Functions in the second category include encouraging the members, releasing tension thatbuilds up and giving everyone a chance to express himself. The main functions of leadershipare to contribute to the achievement of the group goal and to help hold the group together.The leader by himself alone cannot achieve the group goal and help it maintain its solidarityand strength.Leadership is not the activity of an individual alone. In a large scale organization it becomes acollective activity for no single individual can meet the tremendous demands of working outthe whole organization. This has led to the view that leadership like power is dispersedthroughout the organization. No one person has all the leadership functions. The functions ofan organization are divided and each individual in his respective position provides leadershipin so far as he contributes to the attainment of the group goal and the maintenance of thegroup cohesiveness. The leadership is provided at several levels in the hierarchy but at thesame time individual leadership is important. The leader is the symbolic spokesman, thecoordinator supreme, the important participant in decisions as to goals, the primary changecontent and the example to the organization.Leadership Models:Leadership models help us to understand what makes leaders act the way they do. The ideal isnot to lock you in to a type of behavior discussed in the model, but to realize that every 15
  16. 16. situation calls for a different approach or behavior to be taken. Two models will be discussed,the Four Framework Approach and the Managerial Grid.Four Framework Approach:In the Four Framework Approach, Bolman and Deal (1991) suggest that leaders displayleadership behaviors in one of four types of frameworks: Structural, Human Resource,Political, or Symbolic.This model suggests that leaders can be put into one of these four categories and there aretimes when one approach is appropriate and times when it would not be. That is, any style canbe effective or ineffective, depending upon the situation. Relying on only one of theseapproaches would be inadequate, thus we should strive to be conscious of all four approaches,and not just depend on one or two. For example, during a major organization change, aStructural leadership style may be more effective than a Symbolic leadership style; during aperiod when strong growth is needed, the Symbolic approach may be better. We also need tounderstand ourselves as each of us tends to have a preferred approach. We need to beconscious of this at all times and be aware of the limitations of just favoring one approach.Structural Framework:In an effective leadership situation, the leader is a social architect whose leadership style isanalysis and design. While in an ineffective leadership situation, the leader is a petty tyrantwhose leadership style is details. Structural Leaders focus on structure, strategy, environment,implementation, experimentation, and adaptation. 1. Human Resource Framework:In an effective leadership situation, the leader is a catalyst and servant whose leadership styleis support, advocating, and empowerment. while in an ineffective leadership situation, theleader is a pushover, whose leadership style is abdication and fraud? Human ResourceLeaders believe in people and communicate that belief; they are visible and accessible; theyempower, increase participation, support, share information, and move decision making downinto the organization. 2. Political Framework: 16
  17. 17. In an effective leadership situation, the leader is an advocate, whose leadership style iscoalition and building. While in an ineffective leadership situation, the leader is a hustler,whose leadership style is manipulation? Political leaders clarify what they want and what theycan get; they assess the distribution of power and interests; they build linkages to otherstakeholders, use persuasion first, and then use negotiation and coercion only if necessary. 3. Symbolic Framework:In an effective leadership situation, the leader is a prophet, whose leadership style isinspiration. While in an ineffective leadership situation, the leader is a fanatic or fool, whoseleadership style is smoke and mirrors? Symbolic leaders view organizations as a stage ortheater to play certain roles and give impressions; these leaders use symbols to captureattention; they try to frame experience by providing plausible interpretations of experiences;they discover and communicate a vision...Managerial GridThe Blake and Mouton Managerial Grid, also known as the Leadership Grid (1985) uses twoaxis: "Concern for people" is plotted using the vertical axis "Concern for task or results" isplotted along the horizontal axis. They both have a range of 0 to 9. The notion that just twodimensions can describe a managerial behavior has the attraction of simplicity. These twodimensions can be drawn as a graph or grid:Most of the people fall somewhere nears the middle of the two axis Middle of the Road. But,by going to the extremes, that is, people who score on the far end of the scales, we come upwith four types of leaders: • Authoritarian — strong on tasks, weak on people skills • Country Club — strong on people skills, weak on tasks • Impoverished — weak on tasks, weak on people skills • Team Leader — strong on tasks, strong on people skills 17
  18. 18. The goal is to be at least in the Middle of the Road but preferably a Team Leader — that is, toscore at least between a 5, 5 to 9, and 9. In addition, a good leader operates at the extremeends of the two scales, depending upon the situation.Authoritarian Leader (high task, low relationship)Leaders who get this rating are very much task oriented and are hard on their workers(autocratic). There is little or no allowance for cooperation or collaboration. Heavily taskoriented people display these characteristics: they are very strong on schedules; they expectpeople to do what they are told without question or debate; when something goes wrong theytend to focus on who is to blame rather than concentrate on exactly what is wrong and how toprevent it; they are intolerant of what they see as dissent (it may just be someones creativity),so it is difficult for their subordinates to contribute or develop.Team Leader (high task, high relationship)These leaders lead by positive example and endeavor to foster a team environment in that allteam members can reach their highest potential, both as team members and as people. Theyencourage the team to reach team goals as effectively as possible, while also workingtirelessly to strengthen the bonds among the various members. They normally form and leadsome of the most productive teams.Country Club Leader (low task, high relationship)These leaders predominantly use reward power to maintain discipline and to encourage theteam to accomplish its goals. Conversely, they are almost incapable of employing the morepunitive coercive and legitimate powers. This inability results from fear that using suchpowers could jeopardize relationships with the other team members.Impoverished Leader (low task, low relationship)These leaders use a “delegate and disappear” management style. Since they are not committed toeither task accomplishment or maintenance; they essentially allow their team to do whatever it wishesand prefer to detach themselves from the team process by allowing the team to suffer from a series ofpower struggles.The most desirable place for a leader to be along the two axes at most times would be a 9 on task anda 9 on people — the Team Leader. However, do not entirely dismiss the other three. Certain situationsmight call for one of the other three to be used at times. For example, by playing the ImpoverishedLeader, you allow your team to gain self-reliance. Be an Authoritarian Leader to instill a sense ofdiscipline in an unmotivated worker. By carefully studying the situation and the forces affecting it,you will know at what points along the axes you need to be in order to achieve the desired result.What Is Globalization?Globalization is a process of interaction and integration among the people, companies, andgovernments of different nations, a process driven by international trade and investment andaided by information technology. This process has effects on the environment, on culture, onpolitical systems, on economic development and prosperity, and on human physical well-being in societies around the world. 18
  19. 19. Globalization is not new, though. For thousands of years, people—and, later, corporations—have been buying from and selling to each other in lands at great distances, such as throughthe famed Silk Road across Central Asia that connected China and Europe during the MiddleAges. Likewise, for centuries, people and corporations have invested in enterprises in othercountries. In fact, many of the features of the current wave of globalization are similar tothose prevailing before the outbreak of the First World War in 1914.But policy and technological developments of the past few decades have spurred increases incross-border trade, investment, and migration so large that many observers believe the worldhas entered a qualitatively new phase in its economic development. Since 1950, for example,the volume of world trade has increased by 20 times, and from just 1997 to 1999 flows offoreign investment nearly doubled, from $468 billion to $827 billion. Distinguishing thiscurrent wave of globalization from earlier ones, author Thomas Friedman has said that todayglobalization is “farther, faster, cheaper, and deeper.”But policy and technological developments of the past few decades have spurred increases incross-border trade, investment, and migration so large that many observers believe the worldhas entered a qualitatively new phase in its economic development. Since 1950, for example,the volume of world trade has increased by 20 times, and from just 1997 to 1999 flows offoreign investment nearly doubled, from $468 billion to $827 billion. Distinguishing thiscurrent wave of globalization from earlier ones, author Thomas Friedman has said that todayglobalization is “farther, faster, cheaper, and deeper.”This current wave of globalization has been driven by policies that have opened economiesdomestically and internationally. In the years since the Second World War, and especiallyduring the past two decades, many governments have adopted free-market economic systems,vastly increasing their own productive potential and creating myriad new opportunities forinternational trade and investment. Governments also have negotiated dramatic reductions inbarriers to commerce and have established international agreements to promote trade ingoods, services, and investment. Taking advantage of new opportunities in foreign markets,corporations have built foreign factories and established production and marketingarrangements with foreign partners. A defining feature of globalization, therefore, is aninternational industrial and financial business structure.Technology has been the other principal driver of globalization. Advances in informationtechnology, in particular, have dramatically transformed economic life. Informationtechnologies have given all sorts of individual economic actors—consumers, investors,businesses—valuable new tools for identifying and pursuing economic opportunities,including faster and more informed analyses of economic trends around the world, easytransfers of assets, and collaboration with far-flung partners.Globalization is deeply controversial, however. Proponents of globalization argue that itallows poor countries and their citizens to develop economically and raise their standards ofliving, while opponents of globalization claim that the creation of an unfettered international 19
  20. 20. free market has benefited multinational corporations in the Western world at the expense oflocal enterprises, local cultures, and common people. Resistance to globalization hastherefore taken shape both at a popular and at a governmental level as people andgovernments try to manage the flow of capital, labor, goods, and ideas that constitute thecurrent wave of globalization.To find the right balance between benefits and costs associated with globalization, citizens ofall nations need to understand how globalization works and the policy choices facing themand their societies. tries to provide an accurate analysis of the issues andcontroversies regarding globalization, without the slogans or ideological biases generallyfound in discussions of the topics. We welcome you to our website.Leading in an Era of Globalization: Central America and South Africa:In the public panel for the Aspen community, Fellows from the Aspen Leadership GlobalNetwork, participated in a timely discussion titled "Leadership in an Era of Globalization:Central America and South Africa," moderated Peter Reiling, The Aspen Institutes ExecutiveVice President for Leadership and Seminar Programs. Four prominent Central American andSouth African leaders: Jose Andres Botran Briz, President of Grupo Edifika S.A., AlbertoSolano, Latin American Program Director at Global Partnerships from Nicaragua, RaisibeMorathi, Executive Director of Sanlam Limited from South Africa, and Derek Thomas,Executive Director of Letsema Holdings from South Africa discussed the impact of global oilprices, the Central American Free Trade Agreement, and the meaning of President Mbekiresigning as President of South Africa.Leadership In An Era Of Globalization And Diversity: Leading at Light Speed is a powerful leadership book for businesses, public agencies, andnonprofits revealing the 10 specific ways an organization must act and behave to build trust,spark innovation, and create a high-performing organization.The Worldview Paradox is a concept in Leading at Light Speed described in Chapter 9 alongwith three other Leadership Paradoxes. The other three are available upon purchase of thebook.In this time of globalization and increasing diversity, a true leader must open their eyes to thephilosophy of different worldviews. Each of these worldviews contains an easily identifiedphilosophical model of how the world does and should work. The Western Worldviewteaches that everything should be disected rationally. When we encounter an obstacle, ourinnate reaction is to analyze the details and formulate a solution. This isnt a terrible strategyif one assumes that the world is inherently logical and rational.The Western worldview, which teaches rationalty, is only one of many~The Westernworldview of rationality is but one of many~The Western worlview, which teaches rationalty,is only one of many}. Philosophers and sociologists have identified at least four differentworldviews: the Western, the Eastern, the Existentialist, and the Religious.The Western worldview emphasizes rationality and individual free will. Individual thinking,action and problem solving are hailed as key. This worldview is not comfortable withuncertainty and irrationality. This explains, perhaps, the appeal to Westerners of tidy plot 20
  21. 21. lines that translate so well to television. Its comforting to see sixty-minute solutions, easyouts, and resolvable dilemmas. Unfortunately, this worldview does not prepare us fordynamic complexity, or chaos, or for opening our eyes too wide.Contrast that to the Eastern worldview, which focuses on what is unknowable. It holds thatintuition and insight can help us tap into deeper areas of spiritual meaning. It assumes that theunconscious mind has access to deeper and more meaningful insights than those availablethrough rational thinking, and that this non-conscious awareness can be improved throughtraining. In the Eastern worldview, people act under the influence of unseen spiritual forces,and their lives are suffused with this unseen spiritual world. People with this worldview havea deep psychological need for meditation, for quieting the rational mind, for a personalexperience of the unknowable. They are also wary of easy solutions to complicated problems.A third worldview is the Existentialist, which holds that life, as it is experienced by humanbeings, is fundamentally unexplainable, but that we owe it to ourselves to make the best ofthe hand were dealt, both in terms of our family and the world into which we are born. Thisworldview teaches that to succeed in life is to recognize ones own beliefs, the hold true tothem, to act according to them and to live a life built upon them. Soren Kierkegaard, Jean-Paul Satre and other such existentialist thinkers hold that human beings are made to live withcircumstances beyond their control, and that the only path to true meaning is finding what isimportant to each individual being. A corollary to this worldview is that whats important toyou has no bearing on whats important to me. Each individual must discover his or her owntruths.The fourth worldview, the Religious, holds that knowledge is conferred through faith, andthat a kind of mystical power is vested in God or a system of gods. People who follow thisphilosophy are drawn to prayer and religious experience, and use their beliefs and religioustraditions to influence their decisions~People who follow this philosophy are drawn to prayerand religious experience, and use their beliefs and religious traditions to influence theirdecisions~People living according to this philosophy allow their decisions to be influenced bybeliefs and religious traditions, and are drawn to prayer and religious experience}. Thisworldview confers great power on religious leaders who interpret events in the external worldas the manifestation of Gods intent and try to impose their interpretations through religioustraining and teaching.All four of these worldviews mingle together in todays organizations. At one of our clientcompanies, for example, teams of software developers from the U.S., Europe and Asiaroutinely work together on projects. The four worldviews are present in the team. The teamsmanager is a gifted communicator, but even he admits to frustration when deadlines approachand people react in different ways. "One guy was praying, another was cursing our sub-contractors, and a third was laughing at the absurdity of it all," he said.An effective leader is able to navigate the contradictions of these worldviews broad sense ofhumor goes a long way. But its also important to establish a framework of core values thatcan provide people a focus and serve as a bridge between different worldviews. A true leadermust head discussions of the difference between individual values and those of theorganization (the first quantum leap). They need to be ready to teach other people how trulydifficult and complex the world is. How you lead in this gulf between warring convictionswill test your abilities to engage, communicate, and build a high-performing organization. 21
  22. 22. Take this free work survey to discover how well your company measures up to the 10 keypractices of high-performing organizations. Leading at Light Speed is a new leadership bookdetailing the 10 Quantum Leaps of high-performing organizations. Are you leading at lightspeed? Take this free work survey to assess your organizational strengths and weaknesses.Role Of HR Leadership In Globalization Era:Traditional HR as traditional view of HR was confined to welfare in early 1980’s and in1990’s it shifted to training and development, staff and recruiting.Functions 22
  23. 23. • Manpower Planning • Orientation and Induction• Recruitment and Job • Training and Developmentanalysis • Performance Appraisal• Selection • HR in Modern PerspectiveNot only confined to traditional function but stress on“Manage the talent and the talent will manage the result”Role of HR LeadershipWith changing scenario HR leadership had to address new challenges:  As business partners  Administrative head  Strategic partnersFunctions of Line Managers:• Planning• Organizing• Staffing• Directing• Controlling• Need to Adopt Modernview• To cope up in the toughcompetition of globalization.• To redefine certain HRstrategies from customerperspective. 23
  24. 24. Areas where Leadership has to be demonstrated• To rediscover HR leadership which involves commitment to customers?• To adopt innovative trade practices in retaining customers.Golden Rules• Let every employee know who pays their salary.• Employees, line manger and even line mangers need to come out of their MENTALBLOCK.• It has to train line mangers for HR challenges.• HR professional will have to take things head on rather than second fiddle.Ethical Leadership and Its Challenges in the Era of Globalization:AccuForm, a German-Hong Kong joint venture specializing in the production of chemicalcoatings for application to garments, is confronted with a situation where an unauthorizedChinese manufacturer had stolen one of AccuForms experimental coatings, applied it to theirown brand of clothing, and sold it to the public as an AccuForm product. The product hadcaused allergic reactions in some children, and the media had widely reported the incident. Itwas later discovered there was more to the situation than stolen coating, as some staff werefound to have engaged in money laundering, misappropriation of company assets, acceptanceof illegitimate rebates, and bribes. The general manager of AccuForm, in addition to havingto deal with the media, also had to find a way to resolve the differences in business practicesbetween the companys German and Hong Kong parents, which are thought to have beenpartially responsible for the incident, as well as rebuild staff morale and customersconfidence in AccuForms products. Illustrates how differences in company cultures cancreate difficulty for management, and what are formulas for success in one country may beguarantees of failure in another. “I think we have enough good reasons to believe that the modern epoch has finished, VaclavHavel said. Today, there are many things that prove us that we are in a period of transition inwhich something is about to disappear and something else is about to be born. It is as if onething dissolves, disintegrates and disappears, while another, not yet defined, saves fromruins.” We are the witnesses of one of the most profound economic revolution that evenshake the humanity. It is a consciousness search of a new worldly order in which theeconomics dominate politics and sociology. Industry, commerce and finance will not getalong at all with the national framework, becoming too squeezed. Multinational companieswith as much financial power as Belgium, for instance, will blow the frontiers, constrainingstates to obey. They will produce where the costs are lowest, sell where the markets are mostprofitable, and transfer profits in order to pay the least taxes, research the virtual organizationand bring the innovation everywhere. “The world – according to Maurice Allais, Nobel
  25. 25. laureate – has been transformed into a huge casino, with tables placed on all parallel andmeridians.”This new mode of doing business requires a new way of thinking. As Kuhn said, we need achange of paradigm. Otherwise, the reality will seem very paradoxical, an upside-downworld, as at first sight the below sample seems. When Mitsubishi wanted to place its firstautomobile factory in the United Stats that was going to compete with American Industry athome, four States stimulated by the labor force that could be engaged (new jobs) competed inorder to offer the best opportunity. The winner was Illinois that promised 10 years of directhelp that valued 276 million dollars that is about 25.000 dollars for each new employment.Additionally, Illinois offered land that valued 10 million dollars and local tax exemption of 20million dollars. We are at “the hinge of the history”, Toffler said, “we are passing one ofthose exclamation marks of history when the entire structure of human knowledge is shakenonce again under the change pressure, along with the collapse of the old barriers.” Interface’sparadigm with local environment The MBA programs usually show us the interactionbetween organization and environment as a diagram that has a square in the middle – thecompany – surrendered by an empty space – environment. The interface between companyand environment is crossed by arrows: some of them are “inputs” or resources” (materials,human resources, information, etc.), the other ones are “outputs” – products and residualmaterials. This simple and well-known diagram transmits many things about paradigm inwhich it is thought. The company is placed in the middle, because it is the most important: itcaptures the manager’s attention that is supposed to manage resources and activities, it makessense to “inputs” and “outputs” flows. The empty space that surrenders the companytransmits that the environment is amorphous and has an unlimited capacity to supplyresources and absorb the products and residual materials (of course, considering the supplyand request law). This is the interface’s paradigm with the local environment: so that thecompany can sell only to a limited market and the rest of the flows do not raise manyproblems, the rest of environment can be considered as amorphous and unlimited.Global environment and leadershipThe globalization blows any barriers that fence the companies’ access to the globalenvironment of business. Jack Welch – about the moment when this paradigm first came tohis mind: “The company without limits that I have seen would remove all the barriers amongthe functions: industrial design, production, marketing and the others. It will not distinguishbetween “the national” and “foreign” operations. That means that when we will do businessin Budapest or Seoul we will feel relaxed, as though we would do them in Louisville orSchenectady. A company without limits will demolish the exterior walls, combining thesuppliers and clients as part of the same process.” Between the local and global paradigmssome notable differences with regard to the environment approach exist:1. If the environment as a whole is the place where the company is invited to carry onbusiness, there is no reason to be considered as vague and unknown. On the contrary, themore known and understandable the place is, the more chances of advantageous positioningof business increase. 2. The global environment is not unlimited – nor the space, nor thecapacity to offer resources and absorb products and residual materials. On the contrary, one
  26. 26. of the problems that the human kind faces at the dawn of globalization epoch is precisely theenvironment limitation. The lack of water at a global level, massive reduction of zones withforest, pollution and reduction of ozone layer, soil erosion, global warming, and increase ofthe prices of food are signs that indicate the limitation.3. According to what Jack Welch remarked in his declaration above mentioned, aconsequence of a well-outlined environment’s paradigm is that we ourselves belong to it andwe lose our individual outline.4. If everyone has access to this game at a planetary level, it is normal that the stake to behigh and the game to be hectic and with frequent turns. If old-time managers based on thealchemy of environment, could consecrate to internally manage the resources, today’sleaders, facing a “turbulent” environment, can not take their eyes from the game withoutlosing it. Therefore their interest is focused on the environment and more focused on that partof the environments that is their company. A Gallup study that comprises 80.000 of managersfrom all over the world – the largest that has been ever done – states that [4]:“The mostimportant difference between a big manager and a big leader is related to the perspective. Theelite managers are concentrated on the intern part… On the contrary, the elite leadersconcentrate on the extern part. They pursue the competition, have perspective plans, and lookfor alternatives.”5. The environment is not only limited, but also well-outlined and it also has an organic,systemic evolution. This means that for its stable functioning, some limits have to be obeyed.These limits are often broken by the players that are willing to play at the global level, havingin mind the environment’s local paradigm that is amorphous and unlimited. “The requirements of the developing economy, the way it is structured today, exceed thelasting, natural, production of eco-systems.” [5]Here is the advertising of Philippinesgovernment to stimulate the foreign investors: “In order to incentive a companies that yourcompanies… we grounded mountains, cleared jungle, drained swamps, changed rivercourses, moved cities…We did all these things to be easier for you and your company tocarry out businesses here.” [6]The new model of global village?The solution to get out of the trouble is given Lester Brown, imagining only the change ofparadigm: “The transformation of our economy that destroys the environment, into one thatsustains that the progress is related to the revolution as the one generated by Copernicus, inour economical mentality – the recognition that the economy is part of the planetary eco-system and it can assure the progress only if it will be restructured, so that it becomescompatible with the ecosystem.” [5]In other words, the casino paradigm, in which the playerscome, make a hit and leave, will be of almost no use, because there is no place somebody canleave. “There is no place to run to. There is no hide for anyone. Nor for us, nor for you, norfor Fiat… [2]”, Ridderstrale and Nordstrom said. So that either we like it or not, the way itresults from the financial-economical crisis that we are facing, we all will support theconsequences of the game:” We moved do fast to this new worlds, so that we did not recover
  27. 27. our senses. We used to take care of our children by offering them the best education and thebest medication in the world. But if we do not act rapidly to stop the environmentdeterioration, to eliminate poverty and stabilize population, then their world willeconomically crash and politically disintegrate. [5]”More practical utility seems to offer the global economic state’s paradigm, in which goodhouseholder manages its own courtyard, participating to the common wealth of the village asa fundament of prosperity. “In the global village we can not survive by ourselves,Ridderstrale and Nordstrom said. We should find partners at the international level. [2]”Globalization’s Impact on LeadershipEach leader has a set of challenges and opportunities unique to the company’s history, marketsegment, customer changes and technology. Every one of them is faced with the challengesand opportunities presented by the rapid globalization of business.The very concept of globalization is new. The first concept that unfolded as companies beganto grow outside of national boundaries was that of the multi-national corporation. In somecases, companies were growing so large that they began to lose a sense of national identity.But there was still a sense of central command and control. Then companies began to“internationalize.” In this case, there were international offices—perhaps just sales or maybesales and support.Globalization is a larger concept. It involves tapping in to the people resources in manycountries. Often the central corporation allows local, regional or national units the power tomake product decisions, so that the portfolio better reflects the needs and tastes of theircustomers. Yokogawa exemplifies this new trend—and in the process blows the stereotype ofa Japanese company. It has established a corporate engineering center in Singapore and anautomation marketing center in Dallas. Similarly, Phoenix Contact, a German company, has acompetency center charged with research and development for certain product lines inHarrisburg, Pa.Whenever I talk with the senior leadership for any automation technology supplier, they areall aware of these changes in the landscape and initiating programs within the company toexploit these new challenges.Change leadershipSometimes, leaders in automation companies are faced with challenges in the aftermath ofacquisitions—seemingly a fact of life in the industry. I interviewed Andy Gravitt, vicepresident, Automation and Control, Schneider Electric, for the Managers & Executives Skillsdepartment this month. He was appointed to his current position after Schneider Electric, aFrench electrical and controls supplier, had acquired several controls and automationsuppliers, and was attempting to integrate them. He was faced with getting the team togetherand explaining to distributors and customers the implications of the changes, and getting anew focus. In this case, this is the national organization of a global company acting to be thecustomer-facing part of the larger corporation. His leadership tips can be found on page 12.
  28. 28. I’m writing this column from Chicago’s Navy Pier at another example of globalization—theSiemens Automation Summit user conference and the ExiderDome exhibit. The keynotesincluded U.S. executives of Siemens as well as executives from the German corporate officefor industrial automation. Once again an automation company is showing that blend of localcloseness to the customer and corporate leadership. Announcements made at the eventincluded word that Siemens is launching a competency center for human-machine interface tobe headquartered near Dallas.The keynoter for the Siemens event was the winner of the first “The Apprentice” series—BillRancic. He was an entrepreneur who wound up beating people with MBAs from Harvard andWharton schools for the opportunity to work with Donald Trump. He had the opportunity towork with and meet some of the top entrepreneurs in the country. As he observed thesepeople closely, Rancic determined that all the entrepreneurs he met had three traits: anincredible attention to quality, incredible decision-making ability and a “never-quit” attitude.These traits mark most of the automation industry leaders I’ve met, too. These are also traitsthat we all can develop to be more successful. I know I’m challenged by listening to them.References:   Globalization of Leadership  The effects of globalization on management and leadership - Management (Other) - Helium  Globalization’s Impact on Leadership | Columns | Automation World  Leadership in an Age of Globalization | Matt Miller | Big Think  Globalization of Leadership   hl=en&lr=&id=YTh22XQrtlQC&oi=fnd&pg=PR9&dq=leadership+in+the+globalization+era&ot s=xsnFRvZTO6&sig=m95IuOCqMiutO6VaZJoqe09VgSo#v=onepage&q=globalization&f=false( p13, 247) 
  29. 29. Bibliography  South Asia in the era of globalization: trade, industrialization, and welfare(p-190) By Mita Bhattacharya  Leadership In An Era Of Globalization And Diversity(articled 1113941) By Eric Douglas