Challenges of Leadership in Modern Business World

Running head: CHALLENGES OF LEADERSHIP IN MODERN WORLD
CHALLENGES OF LEADERSHIP IN MODERN BUSINESS WORLD
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CHALLENGES OF LEADERSHIP IN MODERN WORLD1
Introduction
As opined by Laud, Arevalo and Johnson (2016), the process of internationalisation or
globalisation and the extensive usage of different kinds of innovative technologies had
substantially changed the nature of the modern business world. Hawkins and Edwards (2015)
are of the viewpoint that the transition that the contemporary business world from that of the
past years not only manifests itself in the different commodities or services which are being
offered by the modern business firms but at the same time within the strategic framework
which is being used by them as well. More importantly, it is seen that in conjunction with the
changes undergone by the business world, the leadership as well as the management
processes or styles used by the contemporary firms has also undergone a substantial amount
of change (Dhiman, 2017). In this regard, it needs to be said that these changes have been
largely precipitated by the changes in the business environment in which the modern firms
operate and also the changing preferences or the needs of the end users of the commodities or
the services offered by these firms (Northouse, 2017). However, at the same time it is seen
that there are various leadership challenges that the modern leaders as well as the business
firms to which they are associated with commonly face. Developing effective managerial
efficiencies, inspiring others, developing employees, team development, guiding change,
effective management of internal stakeholders as well as politics are some of the major
challenges that the modern leaders commonly face which in greatly affects the usage of an
effective leadership style by the leaders. This essay will analyse the challenges that the
modern leaders face within the framework of the modern business world while offering some
recommendations regarding the manner in which the leaders can manage these challenges.

CHALLENGES OF LEADERSHIP IN MODERN WORLD2
Challenges of leading an organisation in today’s world
Grint, Jones and Holt (2016) have articulated the viewpoint that leadership can be
defined as the process through which the leaders try to motivate or influence or modify the
behaviour or the attitude of their followers for the attainment of the objectives or the goals
that had been outlined by them. As opined by Shamir and Eilam-Shamir (2018), prominence
or the importance held by the notion within the spectrum of the modern business world
becomes apparent from the fact that over the years a large number of leadership theories or
models or frameworks have been formulated regarding the manner in which the leaders can
maintain an effective relationship with their subordinates, handle the different challenging
situations and also help them for the achievement of the goals or the objectives that had been
outlined for them. Solaja, Idowu and James (2016) are of the viewpoint that in conjunction
with the changing business world the roles that the different leaders are required to perform
within the spectrum of the business firms have also undergone a substantial amount of
change. As a matter of fact, it is seen that in the present business firms the leaders act as the
stewards of the business firms whereby they are required to perform not only the job roles of
the leaders but at the same time that of the managers as well (Antonakis & Day, 2017). The
resultant effect of this is that along with the job roles of offering leadership, motivation,
coaching, mentoring and others they are also required to participate in the effective
management of the different business activities of the firms as well (Goffee & Jones, 2015).
However, at the same time it is seen that the contemporary leaders face different kinds of
challenges within the spectrum of the modern business firms which deter them from the
effective completion of these job roles that they are required to perform.
One of the most important challenges that the contemporary leaders face within the
modern business firms can be ascribed to the development of effective managerial skills.
Gentry et al. (2014) have articulated the viewpoint that some of the most important

CHALLENGES OF LEADERSHIP IN MODERN WORLD3
managerial skills that the contemporary leaders are required to have are time management,
decision making, strategic thinking, prioritisation and others. These managerial skills are
important because of the fact that they are not only likely to help the leaders to effectively
complete their different roles within the business firms but at the same time to lead their
followers as well (Dhiman, 2017). However, because of the Herculean nature of work that
they need to complete and also the dynamicity of the modern business world allows them
very little opportunity or time for that matter to achieve these skills which in turn greatly
affects the quality of the work that they perform (Kurucz et al., 2017). Another important
challenge that the contemporary leaders face within the business firms is related to the aspect
of inspiring or motivating the followers or the subordinates related to the same. As a matter
of fact, it is seen that the needs or the expectations of the contemporary employees have
changed in a significant manner and money is no longer the sole motivational factor for them
(Girma, 2016). In this regard, it needs to be said that some of the most important needs or the
requirements of the contemporary employees within the spectrum of the business firms are
work-life balance, rewards, recognition, job satisfaction and others. However, at the same
time it is seen that because of the complexity of the contemporary firms it is not possible for
the leaders to fulfil all these needs of the employees and thus they often find it a challenge to
motivate or inspire the employees for attainment or the achievement of the goals that had
been outlined for them (Alshammari, Almutairi & Thuwaini, 2015).
The effective development of the skills or the talent of the employees is another
major challenge that the contemporary leaders commonly face within the different modern
business firms. As a matter of fact, it is seen that contemporary leaders are required to offer
mentoring as well as coaching to the employees and this often becomes a great challenge for
them because of the fact that skill sets, qualifications, talents and others of all the employees
of a firm are not on the same level (Sosik & Jung, 2018). However, because of the large