The Effects of Leadership in a Crisis

The Effects of Leadership in a Crisis

Introduction

The current financial and economic crises leave deep traces. It is not a wave of economic downturn where we must through in store, as in previous economic crises. The previous economic crisis was a global recession or long recession which led to decline in global economy and hit many countries' economic growth. Later, during 2007-2012, the global financial crisis occurred. As compared to previous one, the current crisis requires thorough financial analysis and new leadership model as this crisis is accompanied by a loss of confidence in our financial systems and institutions. The financial base of U.S. and Western banks and pension funds is shaky. The United States and the countries of the European Union have huge state debts that a heavy toll questions of taxpayers and thus of disposable income. Trust in government and public finances decreases. Politicians are preoccupied with the question of how trust in government can be restored. Trust in custody bearers and custodians authority is under pressure and the confidence of people mutually tested (Mitroff, 2004). There is political instability in Arab and African countries. Emerging economies in Asia and South America contribute to further insecurity and instability. The global competition between countries is increasing and is associated with an increasing demand for raw materials and energy. The demand for raw materials will create tensions on the commodities market and a struggle for energy resources.

Thesis Statement

The current political and economic conditions of countries require new leadership model to manage the global crisis.

Discussion

This crisis in the economy, the political authority and global relations has long being performed and will persist. There seems to be a permanent crisis with serious and unprecedented tensions and challenges. This contribution is organized as follows. First describes why traditional forms of leadership do not meet in a crisis. Next, a model outlined for adaptive leadership that suits situations of instability and uncertainty (Mitroff, 2004). Then some model concepts introduced suitable to the variety found in the contributions to organize. Thereafter, successively examines conceptualizations of leadership, change methods, the context of change and leadership practices. This article concludes with a review of the presented model and leadership conclusions about the roads that are open to the leader a way to search uncertainty (Kash & Darling, 1998).

The cognitive ability of a leader of the team contributes to the development only when the leader performs management approaches. When leaders are good at planning and decision making in ensuring that their plans are implemented, these leaders tell people what to do, which is better than if they had hopes of reaching an agreement with the team. When a leader is no better than members of your team, then a non-directive approach is preferable, for example, when team members facilitate an open discussion where ideas can be ventilated equipment and the best approach is identified and implemented. Stress affects the relationship between intelligence and the quality of decisions (Fiedler, ...