INFORMAL LEADERSHIP EMERGENCE IN CRISES

Informal Leadership Emergence in Crises

[Name of the Institute]

Informal Leadership Emergence in Crises

SWOT Analysis

Strength

Self-motivated

Leadership Qualities

Excellent Interpersonal Skills

Weakness

Make people work under pressure

Easily attracted to new processes and tend to change quickly.

Opportunity

Plans of personal development can polish my skills

New progress can help achieve targets easily

Threats

Chances of adopting strict management styles if employees not in control.

Leaders Dealing With the Crises

Business is bound to face several challenges when it is expanded globally. The challenges that the business is most likely to confront in this context include diverse and changed market structures and business conditions, different political and legal system and most importantly the different economic system and social forces that drive market activities. Additionally, the stakeholders in countries where a company intends to launch its business, at times at least, exhibit unique needs and preferences. This situation, therefore, demands the business to modify, sometimes radically, its strategies to keep itself aligned with the political, social, cultural and economic conditions of that country or region.

Today, outsourcing is one rise and many companies are increasingly outsourcing their core manufacturing activities to countries with low labour costs and the availability of raw material on cheap prices as the recent global financial crunch has severely affected the demand and exchange rate, especially in developed countries, making the economic conditions not so conducive for business activities.

Crises such as these inevitably call for modifications in the core philosophy and fundamental practices of a business and also in the leadership style of the management: a phenomenon which is affecting the employees of the company. Manager with traditional style of doing things, endow difficult instructions and the employees are compelled to abide by those instructions. In contrast, there are also managers, with the enlightened and modern style of leadership, who encourage the human resource to be autonomous, to some extent, in making their decision and be accountable for their actions. All these modifications and changes which are employed in order to respond to the changing global business environment are controlled by the management.

Furthermore, the modern business leaders encourage their employees to be optimistic in the time of crisis which, as many researches demonstrate, increase productivity in the places of work. The strategy is based on the fact that motivation is greatly transmittable. In addition, companies formed different teams, under the guidance of business leaders, in order to effectively cope with global crisis and for the purpose of employee development. The teams should be further synchronized within their ranks, in order to encourage increased cooperation, coordination and collaboration amongst the team members. All these achievements are gained over a certain period of time and need constant practice and training. An influential and effective leader, therefore, needs not only to work hard, but also keep himself motivated for learning in order to advance his leadership skills.

Role of Leaders and Mentors in Situation of Crises

There are various roles of leadership, which contribute, a great deal in guiding people towards development on socioeconomic ladder. These roles are often played ...