RECESSION AND LEADERSHIP

Global Recession and Leadership Styles



Global Recession and Leadership Styles

Introduction

Today, the world has experienced great economic recession and downturn which has directly impact on the business operations. Crisis or recession is a normal part of business cycle. When there is boom, there is also recession. It is the duty of management to show their leadership qualities in order to manage the panic that occurs in the employees and with the resources available. Hence, development of a good business plan which will provide a cushion to the company. However, the management and employees of the company might experience anxiety and issues regarding the global recession. During this period, the role of leadership play a pivotal role to the make the organization survives and sustain in the global recession situation. In this paper, we will look at global recession as a challenge by the organization and the different leadership styles that fit better to tackle this challenge and new negotiation capabilities that the organization will need to develop.

Discussion

In the economy, the recession is a condition of macroeconomic characterized by high levels of productive activity lower than those that could be obtained completely and efficiently using all available inputs as opposed to the concept of economic growth(Judge, et al., 2002: 765).

The financial crisis overwhelming world markets which creating problems for the organization. This has created shortage and restriction everywhere. Organizations now see this as a challenge and have set their strategies accordingly. For implementation of these strategies, they need leaders who can lead the team in an effect manner. Times when the crisis spread to the real economy, the situation was very painful. How policy makers can they move forward with leeway diminished? The magnitude and duration of the crisis remain uncertain, but the costs are enormous which lost as they related to mortgages, a risk of collapse actions, rescue, among others. We must now address the root causes.

While markets remain depressed, the crisis has shaken confidence in the banking and financial services and even towards the economy. How States can restore confidence and the markets recover? If these things remain constant, then organization would predict that the same trend would be for the last 5 years. However, unfortunately, this happened and global recession put the organization in to the trouble. In a period of low interest rates, banks have lent to all is, feeding an insatiable demand for high-risk financial products, with the approval of rating agencies too stringent. The market, already complex, has become illegible. Falling asset prices showed a market contaminated by borrowing "toxic" (Boddy, 2011: 255).

For the organization to survive in the global recession here and after, measuring of the economic growth is necessary. Organization need to identify the underlying trends and levers that will boost productivity and growth. But to achieve this, organization must also address other issues such as competition and education, and engage the right reforms. It will also strengthen social response to the expected increase in ...