Impact of Globalization on Leadership Styles

The assignment delves into the consequences of technological advancements and industrialization on business operations, including expanded global trade, outsourcing, and creation of multi-cultural work environments. It highlights the need for leaders to adjust their leadership styles to effectively manage such diverse teams and workplaces. Additionally, it underscores the significance of investing in human capital as a crucial factor in driving economic progress.

Cross Culture
Leadership

Table of Contents
INTRODUCTION...........................................................................................................................1
Culture of Spain with two leadership theories that could likely influence behaviour of future
leaders.....................................................................................................................................1
Future trends in leadership and project management in multicultural working environment of
industry 4.0.............................................................................................................................3
Dilemmas and problems project leaders in Norway might face to maintain business excellence
and ongoing quality improvement..........................................................................................6
CONCLUSION................................................................................................................................8

INTRODUCTION
Today with development of technology, it is essential for companies to replace their
infrastructure with latest techniques. It includes 4th Industrial Revolution and worldwide Digital
Transformation for improving the human capital ranking of organisation, in global manner. In
this regard, leadership is considered as an important aspect in management. It is defined as a
process by which an individual influence a team towards achievement of goal (Engelen and et.
al., 2015). The present report is going to make a critical discussion about different type of
leadership, required for multi-cultural teams in upcoming year 2020. Here, culture of Spain is
described with some leadership theories, which are required to influence behaviour of future
project leaders. Furthermore, comparison of two countries on the basis of human development
statistics are also described. At last, dilemmas and problems faced by project leaders of Norway
for maintaining business also highlighted in this assignment.
Culture of Spain with two leadership theories that could likely influence behaviour of future
leaders
Cross cultural leadership can be defined as an approach for comprehending leaders who
work for maintaining worldwide business. When an organisation resourcing its employees in
other countries then it drives diverse culture at workplace. In this regard, leaders adopt effective
style of leadership to manage diverse culture and influence people towards particular goal. For
translating leadership across culture, they choose various styles like transactional,
transformational and servant leadership styles. In context with Spain, this country is considered
to take a rollercoaster rise in terms of economy, over the last 20 decades. It has go through a
classic boom as well as bust scenario (Schwartz, 2014). Due to industrialisation, there is a high
growth in living standards because it reduces the unemployment rate. The companies here
follow Spanish business culture which includes an easy format- Background to business,
Structure, Management style, Meetings, Teamwork, Communication and Equality at workplace.
However, team is not so appreciated in Spanish companies.
There is a strong hierarchical as well as bureaucratic organization culture in companies of
Spain. Due to increasing standard of people in terms of education, youngsters have go chance to
go abroad for business purpose. By outsourcing employees in other countries, companied got
chance to create diversity at workplace. Therefore, to manage this cross cultural management,
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leaders and managers play an important role. Due to rapid growth in technology like Industry
4.0, companies of Spain and other countries gain advancement to develop human capital ranking.
It is considered as new trend of automation and exchange of data in manufacturing industries.
This kind of development mostly affect human resource in an organization. As they have to
change their working style and concentrate on training classes for developing skills and
knowledge regarding new technologies. Moreover, it affects behavior of future project leaders
also as they have to change their leadership style as per situation of multicultural workplace.
According to views of Shiraev and Levy (2016), leadership can be defined as a process of
influencing a group of people towards a common goal. Therefore, in future, project leaders have
to adopt different-different leadership styles. It includes transactional, transformational,
situational and more leadership styles which influences the power of leaders in multi-cultural
situations. As per perception of Stahl and Tung (2015), Transactional leadership style can be
described as to focus on role of supervision, organization and group performances of overall
individuals to generate better outcomes on regular basis. It will provide support to gain set
targets in terms of increasing productivity as well as profitability. However, it involves the
criteria of dealing with present problems along with working through organizational culture to
perform in correct manner for achieving desired goals. In addition to this, it involves to assess
networks, relevant information and regular reporting of working by following specific policy of
company which facilitate to maintain effective culture to work appropriately.
Thus, it gives advantage to future leaders of Spain to exchange important information
with each other. This would aid workers in utilizing efficient technologies to communicate
accurately which results into better relation among staff members and ensure healthy culture of
an organization. Meanwhile, a healthy and cooperative culture is very essential to conduct
regular operational tasks and activities because different departmental procedures has single
vision or goal to be achieved. Furthermore, largescale expectations have been established in
advance through transactions in order to put efforts at high level for attaining improved outcomes
by completing set objectives of business which helps to generate opportunities in order to attain
growth in future.
According to Reiche and et. al. (2016), Transformation leadership style can be considered
as a proactive approach and forms new expectations in people for motivating them to improve
their performance. It helps in increasing productivity of workers and will facilitate to boost up
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their incentives and remuneration which make sure about their career growth. In this regard,
future leaders give opportunity to encourage team-members to focus on work by increase their
knowledge and skills for performing properly, in order to change organizational culture through
applying innovative concepts. Moreover, it involves to share ideas or concepts with each other so
that appropriate decision can be done for applying effective strategy in respect of grabbing more
profit share of market. Meanwhile, taking suggestions of employees for decision helps to gain
number of alternatives to select the best one option favourable for business but also supportive to
make people feel valuable at their work place (Cross, 2015). In addition to this, this approach is
helpful to motivate staff members which render support to establish healthy and effective
organizational culture and that will result into efficient coordination among workers.
Furthermore, appropriate coordination between employees facilitate to reduce chance of risks
and increase profits of task completed in team.
As per views of Aktas, Gelfand and Hanges (2016), it has stated that Servant leadership
style is another leadership style which helps future leaders of Spain to improve working
performance of team-members. It refers to way of leading or instructing people in which the
main role of leader to make decisions and give orders to sub- ordinates and they have to follow
the same necessarily. It involves the criteria to only provide instructions about particular tasks
and methods to be considered in terms of attaining desired goals of business. Moreover, servant
leaders not only render instructions but focus on employee needs and their growth by putting
efforts towards the same properly. However, employees will become dedicated to their work as
leader fulfil their desired expectations which create positive and encouraged culture of an
organization. It will help to make relation of employee and employer healthy which is essential
to work together for achieve business targets successfully.
Future trends in leadership and project management in multicultural working environment of
industry 4.0
Human Capital Index helps in quantifying the contribution of health as well as education to
increase the productivity of next generation of human. This index can be used by countries in
accessing per capita income and how much they are foregoing to human capital gaps (Vogel and
et. al., 2015). It also helps in analysing how faster nations are going to decrease this gap and
develop their human capital ranking. By improving skills, level of knowledge and resilience of
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people, nations can develop high human capital ranking. It also helps in people to become more
productive, flexible, creative and innovative.
Human capital can be considered as main driver of sustainable growth which develop level
of living standardisation of people. Therefore, it is essential for organisations to make
investments in human capital. According to The World Bank Group, which has established
Human Capital Project (HCP) for mobilizing efforts to address human capital gaps. The purpose
of this project is to raise awareness among industries related to costs of inaction. It assists
companies to make investing in people by analytical work (Eisenbeiß and Brodbeck, 2014). In
terms of goals and objectives, HCP project tends to make such kind of environment where all
children arrive at school for education and can grow up to live and work as high skilled, healthy
and productive adults. As per World Development Report, The Changing Nature of Work has
described some evidence that gives support to importance of human capital ranking. It includes
development of people, economies as well as societies which lays out the rationale of HCP
project. It can be described by making a comparison of two countries on the basis of their human
capital ranking as given below:
Human Capital Index and Components of India
Indicator
Estimate in Year 2017 Source Year for Estimate in
2017
Male +
Female
Male
Only
Female
Only
Male +
Female
Male
Only
Female
Only
HCI Component 1: Survival
Probability of Survival to Age 5 0.961 0.961 0.960 2017 2017 2017
HCI Component 2: School
Expected Years of School 10.2 10.1 10.3 2013 2013 2013
Harmonized Test Scores 355 347 362 2009 2009 2009
HCI Component 3: Health
Survival Rate from Age 15-60 0.825 0.790 0.864 2017 2017 2017
Fraction of Children Under 5 Not Stunted 0.621 0.617 0.626 2015 2015 2015
Human Capital Index (HCI) 0.44 0.43 0.45
Uncertainty Interval [0.43,0.45] [0.42,0.44] [0.44,0.46]
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Human Capital Index and Components of Norway
Indicator
Estimate in Year 2017 Source Year for Estimate in
2017
Male +
Female
Male
Only
Female
Only
Male +
Female
Male
Only
Female
Only
HCI Component 1: Survival
Probability of Survival to Age 5 0.997 0.997 0.998 2017 2017 2017
HCI Component 2: School
Expected Years of School 13.7 13.7 13.7 2016 2016 2016
Harmonized Test Scores 512 507 518 2015 2015 2015
HCI Component 3: Health
Survival Rate from Age 15-60 0.944 0.930 0.960 2017 2017 2017
Fraction of Children Under 5 Not Stunted
Human Capital Index (HCI) 0.77 0.76 0.79
Uncertainty Interval [0.76,0.78] [0.74,0.77] [0.78,0.80]
Interpretation: It has interpreted from above data that as comparison human capital
ranking of India is much less than Norway. There is not much gender gap between survival of
man and women in Norway (Human Capital Project, 2018). But uncertainty level of India is
more than Norway. Therefore, India has to make adequate of investment for improving human
capital ranking.
India and Norway both are multicultural country with amalgamation of multiple states
and cultures and sub-cultures that have their roots in the past and are likely to be the same in
future. Employees as well as managers follow their religious practices while working as well as
leading an organization. While leadership management concerns in people having enough
motivation to work, project management opens the insight of how the work could be well
executed to fulfill the requirement of the project.
However, there are various future trends in both these aspects seeing the dynamic and
complex business environment of India and the challenges that are faced by the leaders in
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managing a multicultural workforce (Koveshnikov, Wechtler and Dejoux, 2014). These future
trends are described below:
Emphasis on vertical growth: It is imperative that leadership and project management be
concerned on vertical (development stages) development rather than horizontal (competencies).
With such advanced use of technology, it could be possible that individual growth is promoted
and encouraged. Technology in the industry 4.0 could be well used in this matter. With proper
training of usage of different communication and working methods, collaboration could be
achieved. This collaboration would rather focus on collective growth which could be beneficial
for individual development of the team members.
Innovative Development: Another aspiring trend that is likely to emerge in the near
future is the creative development. Multicultural individuals have different creativity levels
depending upon their cultural practices and beliefs (Metge, 2014). With such advanced
technological developments, leaders could delegate the power to these individuals to use
technology in the most innovative manners to utilize the methods and techniques in the most
effective ways. In this manner, the leaders could be focused more on efficiencies and effective
use of technologies that would provide organizational development as well as individuals
working in it.
Collective Leadership: With enhancements in technology and its abundant use in
industries, the focus of future leaders must be on collective leadership. Industry 4.0 requires
teams and organizations to be competent enough to sustain in such competitive future
environment. This could be achieved by promoting collective leadership which is currently been
seen as a future trend. In a multicultural environment, network is required to be established in a
way that it promotes collaboration and harmony within these networks (Flatten, Adams and
Brettel, 2015). Through technology and various cross-cultural communication techniques,
leaders can focus on enhancing the performance of each individual through the networks of
people and integrate personal goals from that of organizations.
Dilemmas and problems project leaders in Norway might face to maintain business excellence
and ongoing quality improvement
It is imperative for every organisation in construction sector to keep in consideration two
essential elements of any projects. These aspects are, namely, improvement and enhancement of
quality along with maintenance of business excellence (Shiraev and Levy, 2016). In context of
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Norway, project leaders face a number of dilemmas and problems while maintain the quality and
enhancing it so as to meet the needs of projects (Schwartz, 2014). Also, leaders may face
problems in relation to striving to work for achieving organisational excellence. For instance- A
project is assigned to leader in Norway which has to be completed in a very short duration of
time. In such cases, project leaders face a massive dilemma as ensuring to finish the project
within time reflects that there will be difficulty in adhering to compliances in relation to quality.
This implies that there is a significant scenario in front of leaders wherein they have to choose
one out of two alternatives. These are completing the project within allotted time frame or
adhering to quality measures and achieving operational excellence by employing desirable and
effective leadership and procedures while executing the project.
There are many generic considerations that have to be kept in mind by project leaders so
as to successfully implement a project with least or negligible chances of failure. These concerns
are associated with Johnson’s Cultural Web model (Metge, 2014). This is a strategic model used
by organisation which helps in ascertaining the paradigm, convictions and assumptions in
relation to organisational context by the aid of six core elements. This framework is basically
helpful in determining the way employees interact with each other within organisational
premises, their way of handling work and operating within entity and response of organisation to
outside world. The last aspect can only be carried out by reconciling the differences in cultures
of employees and companies across the globe. The elements associated with Johnson’s model of
culture web which act as considerations for project leaders in Norway are explained below:-
 Stories: This aspect is related to the events and people that are generally discussed within
the premises of company. These stories are told by employees to each other and are even
passed on to newly recruited personnel (Engelen and et. al., 2015). Project leader is
concerned about this as stories convey the values perceived and shared by entity which is
applicable to all departments and functions.
 Rituals and Routines: Rituals are those scenarios of entity which focus upon
communicating what is important for them and their way of handling and managing
situations. Routines are basically the way in which staff interacts with each other and
people within and outside the premises of company. Project leaders have to consider
these so as to ensure that the behaviour and working pattern of employees is directed
towards the timely execution of project.
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 Symbols: In simple words, these are those tangible aspects that can be seen, touched or
felt within an organisational premise (Flatten, Adams and Brettel, 2015). Examples of
symbols can be office layout, logos, functions, dress code and language used. Project
leaders need to ensure that all these are aligned with project or task assigned to team.
 Organisational Structure: It comprises of the hierarchical structure of organisation
along with the relationship between management and staff across different levels and
departments. Project leaders are often concerned about this aspect as they consider it
significant for entity to follow a corporate structure so as to be able to successfully
implement a project.
 Control Systems: This aspect is related to the manner in which management along with
controlling of organisation is done. Control systems comprise of quality and financial
systems along with rewards which are necessarily kept in mind so as to motivate the
workforce towards completing the task within time (Koveshnikov, Wechtler and Dejoux,
2014).
 Power Structures: This element is related to allocation of power to different individuals
within an enterprise so as to perform and take necessary decisions within organisational
context. The most powerful employees are the ones that are closely related to
organisational paradigm and need to be given special importance by project leader so as
to avoid any such situation which can lead to failure of project.
CONCLUSION
It has interpreted from this assignment that today with development of technology and
industrialisation, companies gain advantage to expand their business on global scale. This would
help organisations in trading products or services in other countries, outsourcing their employees
and more. It will tend to create multi-culture environment in workplace. Therefore, to manage
such kind of environment, leaders have to change their leadership styles. This would help in
influencing team-members towards a certain goal and objective. Furthermore, this report also
entailed that to develop economy, it is essential for a country to make investment in human
capital ranking. This would create a rapid progress in increasing productivity of people and
makes them able to face multi-cultural environment.
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REFERENCES
Books and Journals
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Online
Human Capital Project. 2018. [Online] Available
Through:<http://www.worldbank.org/en/publication/human-capital>.
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