This Leadership strategies challenges Assignment help is literature review for challenges and strategies development issues occur in the leadership
There are several questions that have been raised due to the global financial crisis regarding the capacities of financial system along with the usage of several financial products that resulted in this crisis. It also raises more critical questions related to the leadership qualities possessed by the leaders of current times along with their moral values and ethics that they apply while managing the firms. This report would discuss two important problems that are being faced by the various leaders after the global financial crisis. It would also discuss the possible solutions related to these problems. There were some leaders as well who were able to manage their business plan by overcoming the crisis after the global financial crisis. Some firms even reported success after this crucial period as well. Some of the examples of such firms would also be discussed in this report.
Various leaders of the current time from various nations have faced serious challenges due to the global financial crisis. The most critical thing for most of the leader was that in spite of their no direct or indirect involvement in this financial crisis, they struggled due to the global impact of this crisis. Globalization has interlinked the business and trade of the various nations and any kind of impact in one nation create direct or indirect impact on the other nations as the economies are interlinked (Fry, Hannah, Noel &Walumbwa, 2011).
Firms faced the main issue of the higher attrition after the global financial crisis specially the attrition of good talents. So, the organizations need to utilize the talent available within the organization in an effective way to remain in competition within the market. Over the time, it is being observed that the firms with the highly satisfied customers may not see the high sales growth but the firms with the average satisfied customers with the better customer engagement may see a better sales growth. So, the main challenge in front of the firms after GFC was to utilize and effectively manage the available talent pool along with their more engagement so that the talent can be used in a better way (Voegtlin, Patzer& Scherer, 2012). There is a tendency in the market of the US that employee tends to leave the firm less during the slowdown in the job market. But the main problem is the less engagement of the employees with the customers. Several reasons can be credited to this decreasing employee engagement. One of the main reasons for this decreasing employee engagement is the fraud. Whole firm gets impacted in the case any employee is found involved in any kind of fraud or wrongdoings. So, it is important for the leader of firm to ensure that no such fraud happens within the firm as it would negatively impact the employee engagement.
It was observed that many banks were hit sue to the series of fraud after global financial crisis apart from the cases of global frauds. Pre global financial crisis, there were cases related to the interest rate roping by the banks. These cases were seemed as having more negative impact on the employees. Employees were not interested in joining or in associating with any such firm which was involved in any kind of such wrong doing. The main blame is on the banks which were greedy and whose wrong doings lead in the crisis and affected the lives of too many people in negative manner(Youssef & Luthans 2012).Firms working in the developed economies also faced the challenges related to the growth rate as these can’t achieve growth rate which can be achieved by the firms in other nations. So, the focus has been shifted to the economies which are emerging. Emerging economies like Brazil, India, China and other African nations have seen huge investments from the various famous firms of developed nations. There are various problems as well in these nations so investment in these nations is not that easy. The investment in such emerging economies is riskier than the developed economies. So, managing the risk is the main challenge for these firms. There is a need to expend the firms in these nations(Claessens, 2010).
It is necessary for the firms to find some effective solutions for such crisis. It is important for the leaders to be innovative for the challenges of reducing the attrition rate and the increased employee engagement. Apart from the regular work life of the employees, leaders should bring some kind of arrangement that can engage the employees of the firm in better way. There should be a stress on the social activities by the leaders to engage the employees of the firm in a better manner. It will result in the positive impact on the employees and would result in the better association of the employees with the firm. It is foremost for the leaders that they encourage and implement such kind of activities within the firm. It is critical for the employees to have faith and trust on their leaders. There should be more emphasis on the relationships within the firm. A mutual goodwill must be created within the firms among the employees. In order to build a better relationship with the employees, it is important for the leaders to interact more with the employees of the firm.
In the above section, another challenge was discussed as the challenge of expansion by the firms in emerging markets while managing the risks. Expansion with care and the aggression in the emerging nations is necessary for the firms. Some of the firms have tasted success after investing in the emerging markets while some are still struggling. A clear understanding about the investment in such nations by the leaders is much important. A careful assessment of the market for their products should be done so that they can find the markets where customers are willing to purchase the products of the firm. Internet and globalization has resulted in the easy access to the services and products from the firms across the globe for all individuals. So, the consumers from emerging markets are now buying products which are produced and marketed by foreign firms. But for a calculated success, leaders should have a clear picture about the economies of the emerging markets. Leaders need to understand the consumer needs, political scenario, attitude, competitors etc of that emerging market. It may appear to be an easy deal in the starting for such markets but they would face lot of issues during the operations setup. So, the solution of setting up partnerships with the already established firms from that nation is a better deal. It would help the firm in utilizing the operations set up along with the taking advantage of their local knowledge. Many firms have been successful by such arrangements. It helps the local firms in taking advantage of the technological innovations brought by the foreign firms (Maxwell, 2013).
Acquisition of Jaguar Land Rover by Tata Motors is the major success after the GFC. JLR was facing the problems of declining sales apart from other problems. Tata Motors was able to apply its leadership management skills after the acquisition of the firm and was able to turn around the fortunes of the JLR and was able to increase the sales in many folds. The main reason behind this success was the better employee engagement with the leaders and the cultural impacts. New leaders of the firm were able to impact the firm in cultural manner and the turnaround in the sales of JLR was the result (Carter & Greer, 2013). Samsung is another example of the successful organisational leadership in the emerging markets. Entry into emerging economies with the help of smart phones and the other electronics items was impactful for Samsung and was able to slow down the sales of the competitors which were market leaders. It was able to get breakthrough in the developed markets also along with the emerging markets and is in the list of market leaders along with the Apple. So, in this manner Samsung was able to get success by improving the mobile phone segment in an effective way (Maxwell, 2013).
Global financial crisis was able to change the dynamics of several nations which was observed after its occurrence. Post this period leaders working in most of the firms faced serious challenges. This section discussed the two main problems faced by the leaders of the firms. It is important for the leaders to be innovative in approach.While talking about the solutions to discussed problems, it is necessary to assess the structure bonds for the leader and to assess his capability of delivering the results under such structure. They need to think unconventional solutions while being pro active in their approaches.There have been new challenges for the firms after GFC. All these challenges have some kind of hidden opportunity for the leaders which they need to tap on. As mentioned in the report that there were many leaders which were able to covert the challenges in the opportunities and emerged as the winners in their respective field.
Carter, S. M., & Greer, C. R., 2013.Strategic Leadership Values, Styles, and Organizational Performance. Journal of Leadership & Organizational Studies,20(4), 375-393.
Claessens, S., Dell’Ariccia, G., Igan, D., &Laeven, L. (2010). Cross‐country experiences and policy implications from the global financial crisis. Economic Policy, 25(62), 267-293.
Maxwell, J., 2013. Beyond the BRICS: How to succeed in emerging markets.[Online]. Available at http://www.pwc.com/us/en/view/issue-15/succeed-emerging-markets.jhtml. [Accessed on 29th April 2014]
Peters, B. G., Pierre, J., &Randma-Liiv, T. (2011). Global financial crisis, public administration and governance: do new problems require new solutions?. Public Organization Review, 11(1), 13-27.