The Effects of Leadership in a Crisis

In: Business and Management

Submitted By yvondaj
Words 1290
Pages 6
The Effects of Leadership in a Crisis

Introduction The current financial and economic crisis leaves deep traces within communities. It is not just a wave of economic downturn, as in previous economic crises. There is more to it; 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. Trust in government and public finances has decreased. 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 are 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. The current political and economic conditions of countries require new leadership models to manage the global crisis.

This crisis in the economy, the political authority and global relations has long been 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,…...

Similar Documents

European Crisis and Its Effect in the International Market

...European Crisis and its effect in the International Market After the Second World War, the world was in search of a new alternative to stop with the horrific wars between nations. In 1950, France, Italy, Germany, Luxemburg, Belgium and Netherlands joined in order to obtain peace, protectionism and economic advantage. It was the foundation of the current European Union. This significant moment in history was followed by a remarkable transformation around the world: the globalisation of the market. Globalization was described by Joseph Stiglitz (2002) as “the removal of barriers to free trade and the closer integration of national economies”. This new reality, from local to a global market, made businesses and countries adapt themselves forcing the implementation of new alternatives to survive against international competition and to get economic strength in this new aggressive world. Market competition was no longer limited to country’s borders but it was also suffering from foreign rivalry. The European Union’s countries members were integrated with the purpose to be a unique market being the world major regional trade cooperation. Since its foundation, the Europe Union have been engaged in this integration and it had demonstrated strength in the implementation of a free trade area, controlling a large part of the international market. Although the history of Europe Union had appeared to be a history of success of integration and cooperation, in the last two......

Words: 1621 - Pages: 7

Apollo 13- Leadership During a Crisis

...Apollo 13- Leadership during a crisis Lessons learned from Gene Kranz Introduction: Every employee of NASA should known the tragic event of Apollo 13; At that time in 1970 the three astronauts James Lovell, Fred Haise and Jack Swigert had to abort their mission to flight to the moon due to an explosion of an oxygen tank. They had to fight against, carbon dioxide, coldness, a lack of energy and the almost certain death. Despite of a distance of 205,000 miles the three men made it back to earth alive in the Lunar Module Aquarius (Lovell et al. 2006). This was only possible with the help of the Mission Control and the Flight Director Gene Kranz which worked together as an excellent team and came up with a richness of ideas to save the lives of the astronauts. Although it was one of the darkest and most tragic missions of NASA, it also can be learned a lot from this crisis. Apart from the technical knowledge which has been obtained from Apollo 13, a lot of conclusion can be made for leaders. Even with the best technology, it would not have been possible to bring the crew home safely, if not such a strong leader like Gene Kranz have led to rescue of Apollo 13. What lessons can be learned from his leadership style and decisions for future NASA projects will be analyzed and explained from a psychological point of view in this report. Recommendations for action: In many NASA projects, it always comes back to stressful situations, where quick decisions must be made which......

Words: 1779 - Pages: 8

Aggressive Leadership and the Effects on the Employee

...Aggressive Leadership and the Effects on the Employee The manner in which leaders communicate with employees is an essential topic for organizations to recognize. Communication approaches that leaders apply towards junior employees vary in style, tone, and delivery. The literature review for this research will examine aggressive communication approaches that leaders utilize towards subordinate employees and the effect they have on the organization. The aim of this research is to gain an empirical insight to implications of the inter- and intra-personal relationships within the workplace. Aggressive communication according to Infante (1995) refers to the involvement of one individual (sender) applying force to influence another individual (receiver). In addition, abusive supervision is viewed as a significant source of psychological distress according to Restubog, Scott, and Zagenczyk (2011). The mode of communicative aggression varies from one person to another and is considered a behavioral script based on previous encounters in their lifetime. The interpretational and behavioral scripts a person brings to social situations influences that person’s preparedness for aggression (Huesmann, 1988). Communication is displayed through verbal and non-verbal means and is requisite in organizations where two or more employees have to interface either in person or remote from each other. Aggressive communication utilized by leadership breaks down the ability for the healthy......

Words: 2910 - Pages: 12

Europe Crisis and Its Effect on the U.S

...Andrea Gambill 22 March 2013 Impact of European Crisis on the United States When we think of our economy we tend to forget how other countries can affect us. The current European crisis affects the United States (U.S.) economy in many ways. Some of those global economic effects are with our interest rates, government bonds, foreign trades, stock markets, and exchange rates. We see those affects in our financial sector within the very basis of our capitalist markets based on supply and demand. The big banks in the U.S. are tied together with the European banks that have become overextended. A second factor is the possible threat is has on our exports. The U.S. exports over 20% of all its exports to the E.U. which makes it our biggest trading partner. These exports also account for over seven million jobs (Richard Wolf). Supply chain is also affected globally by…… With the uncertainty of the European economies in such countries as France, Spain, and Greece, the U.S. has already felt the decline of demand for exports. The U.S. exports $240 billion annually to the European Union (E.U.) but if the crisis in the E.U. continues then …. U. S. companies are heavily invested in Europe. Manufacturing companies such as General Motors (GM) have already seen huge losses from $361 million compared to a profit of $102 million for the same time frame the previous year. Other major U.S. companies such as Whirlpool and Ford also resulted in losses from their previous year......

Words: 358 - Pages: 2

The Effects of Servant Leadership Within an Organization

...The Effects of Servant Leadership within an Organization Ariel Davis Dallas Baptist University MANA 6314 Organizational Change and Development The Origin of Servant Leadership The philosophy of servant leadership is attributed to the writings of Robert K. Greenleaf and based on his faith and experiences working at one of the world’s largest telephone companies. (Greenleaf, 1977; Spears, 1995). Greenleaf speculated that one individual could simultaneously be both a leader and a servant. Though the foundation of the concept is associated to Greenleaf, he states Jesus Christ amongst other biblical front runners are the greatest leaders who served others. (Greenleaf, 1977). Servant leadership gained popularity after the writings of Greenleaf in 1970. Since the original 1970 essay by Greenleaf, additional research articles, books, and lectures have been written on the topic of servant Leadership. In the article, Work, Spirituality, the Moral Point of View Kenneth E. Goodpaster describes the concept of Servant Leadership as a buzz phrase that has taken corporate America by storm, In an environment racked with stress, insecurity, tough decisions and 60-hour weeks, you might expect a resurgence of a management model, based on Machiavelli's Prince, Leonia Helmsley or some other Theory-X icon. Instead, there's a stirring in the opposite direction: A flood of management books, articles and musings that propose the idea of leading from a service perspective;......

Words: 1607 - Pages: 7

Effect of the Berlin Crisis on the Cold War

...Impact of the Berlin Blockade Crisis on the Emergence of the Cold War Assess the impact of the Berlin blockade crisis on the emergence of the Cold War The Berlin blockade crisis (BBC) of 1948 was when the Soviet Union (SU) blocked all railway, road and canal access to sectors of Berlin (Department of Politics, 2013). After World War Two (WWII), Germany was split into four sectors. The SU had control of East Germany whilst France, Britain and the United States (US) shared control of West Germany. Berlin which was also divided among the same four states was located in the heart of the Soviet sector of Germany (International Relations: Pols 104 Tutorial Course Book, 2013). It is evident that the BBC had an enormous impact on the emergence of the Cold War (CW). It is often defined as the first battle and trigger of the CW. One reason as to why it had such an impact is the significance of Berlin and the European economy. Also, the BBC accelerated the emergence of the CW due to the situation it left both the SU and Western parties in. Finally, the BBC confirmed that a policy of ‘containment’ was needed towards the SU from the US, which increased tensions between the parties. The BBC resulted in as escalation of mistrust and suspicion between what was once known as the ‘Grand Alliance’ (Berlin Blockade, 2013). However, the BBC signified the end of any cooperation that still existed. It is therefore evident that the impact of the BBC on the emergence of the CW was......

Words: 1796 - Pages: 8

Destructive Leadership: the Cause, Effect, and Aftermath

...Destructive Leadership: The Cause, Effect, and Aftermath Snehal Kavi University of Maryland, University College Abstract This paper explores the behaviors of a destructive leader, and how this negativity affected the leader’s subordinates. Several peer-reviewed articles support the ideas that decision-making, influence tactics, power, and emotional intelligence create a successful leader. However, these traits were non-existent in a particular leaders case, which led to undesirable behaviors throughout the organization. The operational manager at a pain management company incessantly belittled and humiliated her subordinates, exerting power in the incorrect manner. This leader had little knowledge and expertise in her field, did not know how to create boundaries, and was lacking in decision-making skills. The subordinates of this leader suffered at work since they did not have a source for training, questions, and feedback. Destructive leadership in the workplace can cause several problems –apathy, disincentive, and failure. As a subordinate to this destructive leader, I learned that a strong leader is someone who can teach, understand, and cope with his or her subordinate’s emotions, while together holding a sense of authority over the subordinates. Destructive Leadership: The Cause, Effect, and Aftermath Introduction Leaders in the workplace can ultimately shape the direction of the success of a company. Leaders......

Words: 2950 - Pages: 12

Effects of Bad Leadership

...to Luzon Sales...I would rather step down after all, you are ridiculously ineffective anymore! Don't bring the whole group down with your bad attitude and envious personality! I can humbly remember landing in Top 6 if im not mistaken just a month after I handled the entire of Palawan District and the first time ever for any Luzon District to appear on that elite national ranking of Haojue Philippines with Cavite area below us that time... Ironically, it was that same Ranking which caused him raging anger from within himself and texted messages to the effect that he was not happy of the result! It was also the same reason I decide to part ways with a heavy heart because I truly love my job before, the company and its policies, and the people except for some like him!!! Now think it over,,, You should take a selfless move not any longer...The company has to stay UP in the market and not you pulling it down under your bad leadership!!! Proud Norkisan until now and until the last drop of my blood! aren't you considering for a HARIKIRI? You would appear a little admirable by then......

Words: 335 - Pages: 2

Direct and Indirect Effects of Transformational Leadership

...| | | Direct and indirect effects of transformational leadership on innovative behavior | | | | | | Table of Contents Abstract 3 Introduction 4 Theoretical framework 8 Leadership and innovative behavior 8 Transformational leadership and innovative behavior 9 The mediating role of affective commitment between transformational leadership and innovative behavior 11 The mediating role of innovative climate between transformational leadership and innovative behavior 15 The moderating role of affective commitment between transformational leadership and employees’ innovative behavior 18 The moderating role of innovative climate between transformational leadership and employees’ innovative behavior 19 Methods 20 Participants and Procedure 20 Measures 22 Data analysis 24 Results 25 Descriptive statistics and scales 25 Correlation analysis 26 Testing hypothesis 27 Discussion 29 Limitations and recommendations 33 Directions for future research 35 Practical implications 36 References 37 Appendix 42 Tables……………………………………………………………………………………………………………………………………………42 Figures. 45 Company report 46 Abstract This study aims at investigating how transformational leaders directly and indirectly (via affective commitment to the organization, the career, the leader, and the team and innovative climate) affect employees’ innovative behavior. The hypotheses are tested by applying quantitative analyses to data collected from 39 employees of a...

Words: 15273 - Pages: 62

The Effect of the Financial Crisis on Greece

...Abstract The following paper offers a research, which raises a question. To what extent, has the Greek economy suffered as a result of the economic breakdown? Over the past decade, the Greek government has been relying heavily on foreign aid and the reliance on financing from international capital markets resulted to an accumulation in national debt. The interference of fiscal policy by the injection of money in the economy and the increase of money supply and the encouragement of consumption has been a huge factor in contributing to the overall outcome. I. Introduction According to many economists, the financial crisis of the late 2000s is considered to be the most severe financial crisis since the great depression of the 1930s. A downfall in the United States banking system was the trigger behind the formation of the crisis, which resulted in the breakdown of large financial institutions. The government was forced to bailout banks as a result and similarly the stock market faced a huge blow, not only in the United States but all around the entire globe. Well into 2006, the United States housing bubble flopped, resulting in the decrease in the values of securities causing the real estate pricing to vastly decline, which similarly resulted in the collapse of huge financial institutions all around the world. Foreign direct investment suffered a huge blow as damaged investor confidence and the decline in credit and security availability have contributed to the major......

Words: 2174 - Pages: 9

Crisis Leadership

...Crisis Leadership Discussion Board 11 Group 4 Liberty University Crisis Leadership The primary objective for an organizational leader is to build a team that is able to achieve goals at the highest performance level possible over a sustained period of time. Although this objective outlines a commendable organizational goal, leaders must embrace the fact that trials and tribulations will occur during the life of an organization. Rather than striving for an unattainable crisis-free organization, leaders should leverage these difficult times to harvest growth and learning within the group. Christians are reminded in Proverbs 3:5-6 that during difficult times “Trust in the Lord with all your heart and lean not on your own understanding; in all your ways acknowledge Him, and He will make your paths straight” (New International Version). Group Consensus The true test of a leader does not occur when things are going well, but rather depends on how the leader responds when a crisis occurs within the group. Based on this week’s reading the three most important concepts related to crisis are as follow: team, leading by example, and vision. Each of these leadership actions are pivotal components to an organization’s ability to not only recover from a crisis, but also improve as a result. If one component is omitted, a leader’s character can become flawed, and their ability to lead may fail. King David is a good example of one who used team, leading by example and vision to lead...

Words: 1498 - Pages: 6

Cuban Missile Crisis Leadership

...Cuba. This lead to the Cuban Missile Crisis. The US became aware that there were nuclear missiles found on Cuban soil. In 1962 the U.S. and Cuba were on the verge of the next world war, a nuclear war. However, the results of President Kennedy’s leadership and a group of advisors (aka EXCOM) decisions are what resolved the crisis. Without the leadership of Kennedy the outcomes of this crisis could have been very different. Kennedy took a situation that could have been terribly deadly into a peaceful resolution. His managerial techniques included trust, collaboration, honesty, and openness. Which allowed for complete cooperation from his committee advisors. Kennedy assembled a group of executive advisors and they spent 13 days discussing every possible solution to deal with the crisis at hand. To signal his trust, he purposely did not attend some of the first meetings. “When there is trust, there’s no fear amongst the members of the team to put forth their best thinking”. (Kathleen Reardon, Video) “The decisions a manager faces can range from very simple, routine matters for which the manager has an established decision rule (programmed decisions) to new and complex decisions that require creative solutions (nonprogrammed decisions).” (Nelson & Quick, 2015, p. 153) It is all in how a leader handles and reacts to a situation that can make an outcome good or bad. In the case of the Cuban Missile Crisis, if it weren’t for the leadership of Kennedy the world could be......

Words: 495 - Pages: 2

Financial Crisis Effects on Romanian Banking System

...ANNALS of the ORADEA UNIVERSITY. Fascicle of Management and Technological Engineering, Volume X (XX), 2011, NR2 FINANCIAL CRISIS EFFECTS ON ROMANIAN BANKING SYSTEM Anca Maria Roşu Academy of Economic Studies of Bucharest, Institute of Doctoral Studies, anca.rosu@yahoo.com Keywords: financial crisis, effects, marketing strategy, banking services, Romania Abstract: The financial turmoil has prompted a reality check of the banking system. This paper builds on an overview of the global financial crisis effect in Romania, emphasis the reaction of the banks in the economic crisis context and how their behavior changed and extends with measures undertaken for mitigating the effect of the crisis to enable a better understanding of the changes and trends of bank marketing strategies during crises. The purpose of the paper is to give suggestions on possible policy responses to the changing consumer buying behavior and to address the effects of the crisis on banking sector strategies. 1 Introduction The National Bureau of Economic Research defines a crisis as a major reduction in economic activity for several months, reflected in the decrease of GDP, decline of individual’s income, reduction of the level of employment, decline of industrial production and consumption. The majority of banking crises follow a common pattern of causes and consequences [Klomp, 2010]. Banking crises are ......

Words: 4163 - Pages: 17

Crisis Leadership

... California CRISIS LEADERSHIP BUS 586: Leadership for the Future Chia-Jung Li College of Business and Public Management November 2011 Abstract Within this paper, the idea of crisis leadership discusses about the concept of how to communicate in an effective way. Additionally, how to get ready to unexpected event that might happen in the upcoming future. It is important to think ahead for crisis that might come at anytime so that everyone knows what to do when facing it. Besides the useful rules that are been discussed in the content, several examples from past working experience are provided to assist the concept that is talked. In hoping, it will be easier for the reader to understand the idea by using the example that happens in real life. A crisis is a turning point, so who is ready for crisis that means he or she is also ready for change for progress. Sometimes the change is not all bad but can be positive change as well. Table of Content Abstract……………………………………………………………………………………..1 Motive……………………………………………………………………………………….3 Why Study Crisis Leadership………………………………………………………………..3 Get Ready For Crisis…………………………………………………………………………4 Tips That Help Us to Get Ready for Crisis…………………………………………………..5 Rule Number One: Learn to Accept Death ……………………………………………….5 Rule Number Two: Hard Work and the Right Leader Win More Often Than Talent……6 Rule Number Three: Leadership is Visible......

Words: 4435 - Pages: 18

Moderating Effects of Initial Leader-Member Exchange Status on the Effects of a Leadership Intervention

...Copyright 1984 by the American Psychological Association Inc Moderating Effects of Initial Leader-Member Exchange Status on the Effects of a Leadership Intervention Terri A. Scandura and George B. Graen Department of Management, University of Cincinnati In afieldexperiment involving 83 computer-processing employees of a large service organization, a leadership intervention based on the Leader-Member Exchange (LMX) model was tested against a control condition The effects of this intervention were hypothesized to depend on the initial quality of the LMX relationship Thus, employees having initially low LMXs with their immediate supervisor were compared to cohorts having initially higher LMXs It was hypothesized that employees having initially low LMX would respond more positively (after adjusting for regression effects) to the leadership intervention than those having higher quality relationships. Analysis of interaction effects indicates that comparing the leadership intervention condition to the control condition, the initially low-LMX group showed significant gams in productivity, job satisfaction, and supervisor satisfaction compared to the initially high-LMX group The initially low-LMX group also perceived significantly higher gains m member availability and support from their supervisors than the initially high-LMX group. The initial quality of LMX appears to moderate the leadership intervention effect in the hypothesized direction. The implications of these results......

Words: 4962 - Pages: 20

男の子 | Mobile Police Patlabor | [EX-TORRENTY ORG] Crazy Rich Asians 2018 PL 480p BDRip XviD AC3-AZQ