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The world has become a global village, and diversity for companies is the order of the day. The first new role facing leaders in terms of diversity is helping the staff accept it. As companies become more diverse, leaders need to empower people and bring them aboard to accept diversity. Leaders must assume the responsibility to empower people and ensure that the company capitalizes on the strengths of all employees. In addition, leaders become responsible for making all employees members of one team, so that nobody feels out of place. Moreover, leaders must engage the employees of all cultural backgrounds into the organizational culture, while still respecting their differences.

Leaders operate in an environment where the world integrates into one entity. This environment is influenced by internal and external cultural factors, where cultural intelligence is the key to successful global leadership. To succeed in management positions, today’s leaders need cultural intelligence to be able to communicate the company’s vision and influence their followers across cultures to achieve this vision. Therefore, it is critical that leaders across the world develop cultural intelligence.

People differ in their extent and level of diversity, their sensitivity to other people’s cultures, their ways of doing things, and their values. Leaders pass several different stages towards personal diversity awareness. The ability to easily accept and accommodate other cultures determines whether a leader can succeed in his/her endeavors in a culturally different setting. A leader with an open mind, who is willing to accept people’s cultural differences, is more likely to lead people into the right thinking. However, a leader who is uptight and unwilling to accept other people’s cultures may not be able to change the ways followers think and behave.

The major difference between transformational leadership and transactional leadership is the method used to achieve goals. Transformational leaders motivate their subordinates to achieve and improve efficiency and productivity through communication. Transactional leadership depends on performance results to reward or punish team members, depending on whether they achieve their goals or fail. In transactional leadership, managers and team members set goals collectively and collaboratively, and employees or team members agree to follow the direction set by managers to attain these goals. Transactional leaders have the authority to review performance results and train the staff to correct their mistakes in case of failure. Staff members or team members receive rewards or bonuses when they attain their goals.

The difference between charismatic and transformational leadership is in the role manager play in the team. In charismatic leadership, the leader carries the greatest responsibility, and he or she believes in oneself more than he/she believes in the team. In charismatic leadership, a project or an organization can fail if the manager leaves the organization, since no one else can take his/her job. A transformational leader, on the other hand, is an essential part of the team. He/she takes the time to teach employees everything they need to know, and they can successfully accomplish their tasks, in case they are left alone.

Charismatic and transformational leadership are similar in that they both involve a leader injecting large doses of enthusiasm and motivation into his/her followers. These leaders are usually highly energetic and do their work passionately. Both charismatic and transformational leaders seek to move their staff forward to achieve the organizational goals though motivation and enthusiasm. 

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