Leadership theories are generally considered as enduring and stable. However, continuously changing business environment and operational complexities inform about the different side of story. Today’s leaders are operating in bewildering environment and things are expected to become more complex in coming time. In 21st century leaders are facing major challenges associated with employee management, strategic planning and change management (Leslie, 2009).
Business expansion in global markets generated a need for the leaders to focus on developing diversified workforce, and to have global teams. It is responsibility of leaders to understand different requirements of all the teams and provide suitable solutions to those problems in timely manner. Leaders are required to work closely with all the teams and ensure efficient delivery of the projects. Leaders face issues related with cultural challenges, internal conflict, duplication of work, unclear roles and responsibilities, transparent performance appraisal and career development of the employees.
Companies that are working in multiple countries face tremendous presser in terms of continuously rising competition, changing socio-economic conditions, uncertainties in consumer demands, and overall business environment. Leaders are required to watch very carefully the short-term opportunities and long-term developments. Business strategy of the organization should be capable enough to tap opportunities and gain benefits in long-run. Leaders are also required to bring organizational changes in order to respond to changing business environment (Barton et al., 2012).
Situational leadership style allows leader to take actions after considering the demand of the situation. In changing business environment situational leadership style is most suitable to resolve organizational conflict and bring change. Transformational and participative leadership style will help leaders in inspiring employees to follow the established vision, and motivate them to deliver excellent performance (Northouse, 2013). Participative leadership style encourages employees to participate in decision making and learning process which not only help in bringing changes but also in innovation.
Barton, D., Grant, A., & Horn, M. (2012, June). Leading in the 21st century. Retrieved from McKinsey & Company: http://www.mckinsey.com/insights/leading_in_the_21st_century/leading_in_the_21st_century
Leslie, J. B. (2009). The leadership gap. Greensboro, NC: Center for Creative Leadership.
Northouse, P. G. (2013). Leadership: Theory and Practice. Thousand Oaks, California: SAGE.