Contemporary Leadership in Small and Medium Enterprises
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Added on  2023/06/11
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AI Summary
This report discusses the importance of leadership styles in small and medium enterprises and how it affects their success. It also highlights the reasons for failure and the need for diversity in the workplace.
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Running head: CONTEMPORARY LEADERSHIP Contemporary Leadership Name of Student: Name of University: Author’s Note:
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1CONTEMPORARY LEADERSHIP Executive Summary of Article 1: The aim of this report is to discuss about the specific leadership style which causes the success of Cadence Capital Limited. The Cadence Capital Limited is an investment firm which invests in listed equities. The paper discusses about different styles of leadership which are applicable in different organisations.The role of a leader is very important for an organisation. A leader is responsible for the development of the goals, the values as well as the vision and management of the reasons for an organisation is crucial. There are several leadership styles which are visible in different organisations.It is seen that different leaders employ different leadership styles in several organisations depending on the specific situations which demand it. Transformational leadership is one of the most important kinds of leadership where the leaders inspire their followers also influence them in order to lead to the transformation of their personalities and performances.Transformational leadership is the ideal form of leadership in majority of the situations. This style of leadership has been seen to have a very strong link with the authentic styles of leadership and these are very crucial. There are four well known theories of leadership whichincludethatofidealizedinfluence,inspirationalmeansofmotivation,intellectual stimulation as well as that of individual consideration. The concept of idealized influence is used to refer to the ability of a leader to successfully impact the followers in a way that the changes in their attitudes and behaviours can start to surface. All the four dimensions are found to be extremely significant in case of a leader. These four dimensions help in honing the personality and skills of a person.This style of leadership is very much important in case of a leader. Transactional leadership helps in employing a specific command chain.This type of leadership is crucial because the performance of an employee either good or bad and this employee is punished or rewarded accordingly. This type of leadership is important because this is comprised
2CONTEMPORARY LEADERSHIP of the interactions between the leaders and their followers. This helps in the proper and effective mitigation of risks and helps in keeping the employees motivated and directed towards their work purposes. In the transactional style of leadership is suitable enough as per the fast paced dynamic environments at the cases where fast transactions take place. The transactions are seen to be dependent on the short term planning and the goals which are short term.There is a certain amount of pressure also which is created on the employees. There is also the exchange of task objectives and there is the maintenance of discipline in the organisation.Autocratic is a more extreme practice of transactional leadership where the leader practices extreme authority and control over the followers. Autocratic leadership is not much supported in organizations.In this style of leadership control is crucial and the margin of error in this circumstance is very less. Autocratic leadership is concerned with making the team members perform to the best of their ability and the decisions or power influences are not shared in detail with any subordinates. Democratic style of leadership is basically the participative style of leadership which encourages all the stakeholders of the organization to give their respective opinions. In the business environment atCadence Capital Limited, there is a high amount of risk in the business environment. The democratic style of leadership is employed in this organisation where the employees can worker effectively and problems can be avoided.The democratic style of leadership actually focuses on the equality of the group and the leaders help in the provision of guidance and also to the team members regarding the retention of the decision. The leader also needs to possess a suitable amount of information which can be utilized to ensure that the best possible outcome is obtained. There is a sense of equality which is felt in the style of democratic leadership.The leader of the company hasto take several vitaldecisionsregarding the management of the organisation and it has been seen that the democratic style of leadership is
3CONTEMPORARY LEADERSHIP applied here.SMEs are very distinct in terms of the entities which they are and therefore there is the need to have a distinct style of leadership. It has been seen after proper research that the better performance of SMEs have been seen to repeatedly found to be very much strongly linked to the entrepreneurial style of leadership. The four major dimensions of this specific vision include that of vision, proactiveness, risk-taking and innovation. Innovation leads to the success which enables an organisation by the introduction of newer and better products and services. There are different specific aspects of the leadership style at Cadence Capital, which include those of knowledge sharing, the highly motivated environment for employees and also the entrepreneurial skills. The leaders of the organisation help in the sharing in the knowledge sharing approach which helps in the upper management or in the junior level. The organisation helps in the preparation of the employees for understanding the complexity of a specific situation and taking tough decisions in unfavourable conditions. The Cadence Capital limited needs very loyal employees as they have to deal directly with the clients as also the employees regarding the future investments. Entrepreneurs require the capability of taking risks where other people are not ready to do so. It is not crucial for a business to help in the initiatives and performance. In thisconnectionit hasbeenmentionedthatcertainnoteworthytraitsof criticalthinking, optimism, tolerance of risk need to be possessed by the entrepreneurs. All in all it has been seen that the leaders and their leadership has a huge impact on the all round performance of an organisation.
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