Importance of Leadership Development

LEADING BUSINESS
ORGANISATIONS

Table of Contents
INTRODUCTION ..........................................................................................................................1
PART 1............................................................................................................................................1
a) Importance of in-depth leadership development................................................................1
b) Aspiration gained from prevailing leadership style...........................................................2
c) Key challenges and strength ..............................................................................................2
PART 2............................................................................................................................................3
a) Overview of contemporary leadership styles.....................................................................3
b) Critical evaluation of Mark Parker’s leadership style........................................................6
c) Recommendations for Mark Parker in terms of how he should select his successor.........8
CONCLUSION ..............................................................................................................................9
REFERENCES .............................................................................................................................11

INTRODUCTION
The level of competition is rising day by day in drastic manner. This is creating a serious
issue for business organisations since they are loosing their existing position from marketplace
and particular industry (Kotter, 2012). The reason of the same phenomena is nothing but the
introduction of large number of companies within market dealing in similar sector. In order to
cope with existed situation, firms need to adopt effective leadership style for leading their
business actions in proper ways. For achieving the identical styles of leadership, it is important to
employ suitable leaders by giving them responsibilities regarding providing right direction to
company. They will definitely assist their corporations in attaining all pre - determined aims and
objectives. The present report is designed by considering a popular organisation known as
'Nike'. In this project, various contemporary leadership styles has been highlighted that the
venture should follow. Besides this, leading style adopted by Mark Parker for gaining employ
engagement and change management is also described properly.
PART 1
a) Importance of in-depth leadership development
Leadership can be simply defined as the art of inspiring team members for acting towards
reaching a mutual target. Thus, leaders play an eminent role in an enterprise as they are
performing for the development of not only organisation but also for the workers as well. To
achieve better result, it is vital for contemporary leaders to receive in – depth leadership
development (Giltinane, 2013). This will help them in attaining high degree of employee
engagement, securing corporation-al sustainability along with gaining competitive benefits. By
implementing the strategy of in-depth leadership development, leaders can become able to
understand their followers in more better ways since highest level of interaction from group
associates is being carried on at similar programme. Additionally, under this session team heads
used to resolve issues associated with each and every employee by interacting with them
appropriately. This will help in ensuring organisational sustainability for longer period of time.
After receiving positive and healthy environment via implementation of in-depth leading
sessions, retention scale of personnels will get increased. Apart from that, leaders also get
capable of giving innovational training to subordinates. Thereafter, people working at enterprise
can easily manufacture innovative products and services which will seek attention of more &
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more customers. Therefore, company would gain competitive advantages as a fruitful outcome.
Hence, it can be said that every contemporary leaders ought to acquire in-depth leadership
development.
b) Aspiration gained from prevailing leadership style
This is being noticed that various types of leadership style is present in the arena of
corporate world. Some of them are autocratic, democratic, strategic, transformational, Laissez –
faire, etc. (Knapp, 2015). People are choosing suitable one according to their views and goals.
As I want to gain highest possible level of employee engagement at workstation, I shall go with
the democratic leadership style. I wish to work in sportswear manufacturing as this segment
attracts my attention and leadership style is at par with my requirements. In this regard I will
prefer 'Trait approach' as I found this attractive. By executing democratic style, I would work by
giving importance to my team members and sub - associates. While taking decisions, I will
welcome the ideas of my subordinates. By doing this, I can easily motivate people by making
them feel worthy and valued at corporation. Subsequently, as a good result, staff members will
show interest during the process of decision making. Thus, it would improve the degree of
workers involvement and they give their best in achieving goal of company. This aspires me to
work for the upliftment of my followers as well as entire organisation. One of mine desire is to
hold a good position at my work – premises. This is being full-filled by adopting democratic
guiding pattern. It is to be noted that authority of making final determination and conclusion is
lying in the hand of democratic leaders. Hence, I will be able to dominate and control my
followers by showing them correct direction. Besides this, I am having the power of delegating
my responsibilities to other personnels who would be capable of playing my roles efficiently.
Therefore, it is a plus point for me as in my absence I can delegate duty of mine to other people
according to my choice. These all situations motivate me to work in business environment of my
firm.
c) Key challenges and strength
I am an effective and outstanding leader of my organisation. There are some qualities
which made me worthy in this context. Major strength posses by me are mentioned below :
 It is my passion to lead people since I used to cater correct and effective solutions for any
issue related to work to my subordinates. Apart fro this, I am able to attract personnels by
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expressing my views or opinions on particular subject. Thus, level of motivation can be
enhanced by me in effectual manner.
 I am confident in nature, thus trust on my decisions. I can ensure the sustainability of
organisation by engaging workers towards estimated goals.
 I am of helping behaviour which makes me a suitable leader. I can not see anyone
struggling in poor conditions. So, I generally find solutions for those persons and help
them in modifying their working situations.
 I believe in creating healthy and optimistic relationship with civilians. For doing the
same, I generally determine issues and difficulties of workers performing at enterprise at
personal level. Afterwards, I cater appropriate resolutions for reducing such problems.
This assist me in enhancing employee engagement as well as inspiring personnels.
 It is passionate in working for the welfare of customers.
 I am honest in both situation i.e. within as well as outside the corporation since integrity
is running in the fabric of my heart and soul.
 None of my followers accused me in terms of acting as a detached team head.
Challenge faced me are following :
 I used to take views of my subordinates at the time of making important decisions.
However, some challenges is being faced by me during this process that is outcome is
affected since it consumes more time by the involvement of all people working at
corporation. For resolving this issue, I am trying to gather inputs from seniors so that
their experience leads to formulation of constructive decisions.
PART 2
a) Overview of contemporary leadership styles
Leadership refers to a dynamic relation which is made on the basis of common intention
and mutual influences established between collaborators and leaders. This provide assistance in
leading both parties to high level of inspiration and moral improvement since they are evoking
real changes. There are various contemporary leadership styles which are being followed by
leaders of Nike (Kottke, Pelletier and Agars, 2013). It is to be noted that this is only a leader
who can decide which kind of style is best suited for the development of venture. These
decisions are made by team heads on the ground of certain situation existing within workplace.
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In this context, group heads existed in Nike play an important part in taking correct decisions
regarding selection of appropriate leadership style. The different kinds of contemporary
leadership adopted by Nike's leaders as per the existing condition are explained below :
 Transformational leadership style : This was firstly coined by Sir J.V. Downtown. By
applying concepts of transformation, leaders used to motivate, inspire and encourage
their staff members for creating changes and innovation. This in turn assist in growing as
well as shaping the upcoming success of enterprise. For accomplishing the similar goal,
an example should be setted by chief of association at executive level by making strong
sense of corporal culture, worker ownership & independence in the working sites. It is
being focussed that leader following this leadership pattern try to encourage and motivate
personnels without micromanaging i.e. they generally trust on skilled and trained
workforces for taking authorisation over decisions in their allotted job roles. On the other
hand, it is a management style that is framed for supplying more room and infrastructure
to employees for becoming more creative, looking to future consequences and finding
new resolutions for previous issues (Transformational leadership style, 2018). Chiefs of
specific team existing at Nike are playing an important role in selecting the type of
leadership style. They have selected transformational leadership style as they feel the
need of innovation in existed products and services. This is considered in the case of
making innovational merchandises and services. For instance, when buyers are not
satisfied with the products offered by Nike and are demanding something new & unique.
Then, leaders of Nike commonly attempt to arrange a meeting for all workforce in order
to convince them for doing modification in existing services and goods. They used to
make an effective strategy for sowing seeds of innovation in the mind of workers.
Afterwards, people think to bring or produce creative products so that they would meet
the desires of targeted users especially athelete present across entire world.
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(Source : Transformational leadership style, 2018)
 Transactional leadership style : This is a unique style which is completely opposite of
transformational leading. Leaders following similar concepts believe in “carrot & stick”
approach and take use of punishments as well as rewards while guiding their followers.
Thus, it can be stated that head of a team are depending on a different constructs for
creating motivation amongst subordinates that is reward & penalty (Contemporary
Leadership Styles, 2018). Leader performing at Nike commonly apply this leadership
style when they do not need innovation. Irrespective of that, they concentrate on
maintaining consistency and predictability over time. At the same time, leaders pay
attention on faults or errors occurred at work – station. This is accomplished by close
supervision, monitoring in terms of performance of employees, oversight and deep
investigation. The main reason of adopting this approach is to focus on achieving short
term aims & objectives rather than long term.
 Charismatic leadership style : According to the name of this style, team heads
commonly influence their associates by showing natural charm and unique attributes. In
addition to this, leaders posses differentiating visions, self – confidence and are mainly
known for utilising unconventional approaches (Gehrke and Claes, 2017). It is their aura
& attractive personality that seek attention of people working at organisation, thus assist
them in gathering personnels. Therefore, it can be said that chief of the group are
depending on their charms instead of power and capabilities for giving impacts. They are
also having surprising confidence level that helps them in representing views among huge
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Illustration 1: Transformational leadership style

crowd of workforces. This has been observed that leaders existing at Nike are applying
charismatic leadership style when they have to give presentations in front of subordinates
and other highly authorised employers. By spreading fragrance of charm and attractive
personality, they attempt to attract audiences and hearers who are present at their
exhibitions. Leader also used to generate a feeling of trust and reliance amongst
workforce for itself by using the art of visible self sacrifice. These actions aid them in
gaining more support as well as contribution of staff members.
b) Critical evaluation of Mark Parker’s leadership style
The Nike is an American multinational corporation that put efforts to design develop,
manufacture at global level along with marketing and sales of footwear, apparel, equipment,
accessories and other services. It was founded by Bill Bowerman and Phil Knight in the year
around 1964, almost 54 years ago. It provides several product or services to people for
completing their desires properly. This organisation is headquartered in Washington Country
United States and serve worldwide. They have approximately 74400 staff members working on
regular basis in this company. It is considered as world's largest supplier of athletic shoes,
apparel and a major manufacturer of sports equipment that have revenue in excess of around
US$24.1 billion in its fiscal year.
Mark Parker has played so many roles such as CEO (i.e. Chief Executive Officer),
Chairman and President of organisation. During his professional life span, he had used various
types of leadership styles as per the condition existed in work – premises and corporate world.
According to Cuadrado and et. al., (2012), for implementing change management Parker has
taken use of transformational leading style since there was requirement of creative and
innovative production. He set up aggressive long term targets which can be achieved through
right transformation of existing workforce of the company. Customers are demanding unique
sports wear products at cheaper rates. Thus, by considering this situation Mark Parker decided to
bring innovation in their whole creation. He is a man of imaginative as well as innovative
actions, this makes him an effective leader and visionary. Because of this quality, he was
regarded as “Person of the Year”. In context to this, he was personally making different
strategies for creating a feeling of motivation in staff associates as it is obvious that anyone may
resist to change if he or she will become habitual of doing identical task. Therefore, workers
performing at Nike were also opposing to the process of change management since they are
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working under specific pattern from long time. Hence, these personnels are not wishing to leave
their comfort level which is not in favour of company as well as leader. For coping with this,
Parker is attempting to sow the seed of enthusiasm at business environment of Nike. By using
motivational and inspirational policies, Parker is able to do this since people get ready to work
according to their guide lines. He is showing the light of innovation and creativeness to all
personnels so that they start thinking in innovative way. This help workforces in manufacturing
unique and innovational goods & services. By the development of such kinds of productions, it
become easy to attract large number of customers towards the corporation.
Nike is thus satisfying the requirements and demands of their expected consumers by
offering them products as per their wish. Therefore, the productivity and brand value of Nike
will get improved efficiently as well as effectively prior to appointing Parker as the CEO. It was
rumoured that Phil knight owner of the brand was not confident of abilities of Mark Parker to
lead a brand to which he proved wrong. On the another side, one of the reason of generating
feeling associated with encouragement, motivation, enthusiasms and inspiration in workers is to
upgrade the existing level of employee engagement at workplace (Fernando, 2016). Parker used
to build attractive and realistic mission and vision for the upliftment of Nike. This in turn seek
attention of large number of personnels as most of them are target oriented. In addition to this,
they are being rewarded in different forms such as giving appraisals along with rise in post or
designations. It is generally accomplished by examining the past and present performances,
devotion & determination towards job roles, skills & talent of people. By this way, sub –
associates get involved in attaining the goal of venture.
For brining the cloud of innovation, he is taking assistance of modern tools and
techniques. Thus, as per the view point of Bateman and Snell (2011), this procedure is quite
expensive in nature. Thus, the author argues with the above mentioned statement and saying that
transformational leadership style should not be used by Parker. According to their perspective,
leader have to examine the budgets as well as financial condition of organisation before
executing any plan like that. By the introduction of digital technologies, Nike may suffer from
loss since it will consume a huge amount of money. At the similar time frame, by implementing
any new strategical plan of innovation, Nike has to face different ranges of risks. One of the
main risky factor is the failure of scheme since the probability of liking innovated goods and
services is quite low since consumers may not satisfy by the manufactured products. Thus, by
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investigating such a huge sum of monetary value and capitals, Nike can not afford these type of
situation from the side of targeted users.
In addition to this, Mark Parker have to arrange proper training and development
activities for their team members as they are not aware as well as habitual of working with
modern machineries and techniques. This might also need a good quantity of currency in order to
fulfil their plan. Hence, by observing overall circumstances, it is decided that applying
transactional leadership style is proved to be very costly. Thus, author is not suggesting to Parker
to adopt the same style. This on the other hand create so many hindrances in the way of attaining
employ engagement. There is possibility that people performing at Nike may not get ready for
applying innovational tools and techniques in order to bring change in current deliverables.
Implementation of creative strategies demand hard labour and more working hours from
workforces. Most of the personnels may denied to do so due to some personal or professional
reasons. This fact is valid for especially female workers as these sections of workforce are
having various responsibilities at their home. For example, they have to cook food, nourish their
children and many more domestic chores resist them from working late at organisation. Some of
the employees might be pregnant, therefore, they needs maternity leaves for giving birth to
babies along with taking care of themselves. Hence, it can be depicted that such type of issues
will be occurred during executing creative plans affiliated with change management. Mark
Parker has to consider these situations while making suitable plan of action. If he is going to
neglect such circumstances and conditions, he will surely can not achieve employee engagement.
Thereby, there is 50–50 chance of achieving success in context to the implementation of
transformational leadership style.
c) Recommendations for Mark Parker in terms of how he should select his successor
This is obvious that after particular time interval, Mark Parker may get retried and the
responsibility of handling whole team comes on the shoulder of some other person. Since Nike is
trusting on the suggestion of presented by his outstanding member that is Parker. He should
recommend organisation regarding the selection of suitable and eligible leader after him. The
recommendations associated with this situation are presented below :
 Mark Parker should recruit someone for Nike from outside the venture since it assist in
introducing creative and innovative ideas which will work for the upliftment and welfare
of whole corporation. If Nike will hire any person from within the firm, then this may
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create an environment of depression & demotivation in other employees performing at
work – premises. People might think that hired leader is recruited because of having good
relationship with management. Thus, they consider the act of discrimination on the basis
of relations (Anderson and Sun, 2017). This is not good for the image of Nike since it
will give negative impact on whole customers along with workforce. The other reason of
not employing team head from within corporation is the lack of creativeness in existed
employees. Personnels who are already working at Nike might not able to give unique
ideas and opinions in comparison to the outsiders. The probability of having innovational
constructs and thinking is more in those persons who are currently not being a part of
organisation. That person may be a customer of Nike, thus, he or she comprises of more
ideas and also knows the weak points of corporation since he/she has already used the
products of enterprise. Thereby, they can give appropriate scheme for creating
satisfaction amongst civilians living in different places. Hence, hiring a personnel from
outer environment of company is proved to be more profitable when compared in inner
one.
 A suitable leaders should have various competencies in terms of knowledge, behaviour
and skills. A good group head ought to be courteous in nature as this will help them in
dealing with various situations related to rigid employees. Beside the same, people get
convinced in better ways from a leader of polite when compared with some one who are
of rude characteristics. If a person is going to work in a company like Nike, then he or
she have to be highly educated since a qualified and talented personnel is able to deal any
situation in effective manner. It is their qualification and knowledge which will help them
in meeting the goals and missions of corporation. Skills associated with leadership such
as fluent communication ability, motivating skill, honesty, creativity, trustworthiness,
delegating, positivity, responsibility and many more should be present in a leader of Nike
(Allen, 2012). These all abilities shows that an individual is a suitable nominee of chief
of any organisation. Therefore, it is recommended to recruit a person from external
surroundings of Nike who are having these kinds of qualities. From recruiting such a
worker, company should do deep investigation.
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CONCLUSION
The above report had concluded that leading business organisations can be described as
to make more effective as well as efficient strategies to maintain strong position in competition
of market. It includes the criteria to determine beneficial opportunities in changing trends of
market to grab them at correct time for boosting up productivity on regular basis. This involves
the policy to be made made for development of leadership because it plays a significant role to
grab more profits share of market in properly manner. There are different types of leadership
styles such as transformational, transactional, charismatic and many more which can be utilised
by organisations to gain better outcomes. The strategies to deal with hey challenges and balance
strengths of business to attain development of company. The above assignment also includes
critically evaluation of an effective leadership style which is used by Mark Parker’s to gain
desired outputs in correct manner.
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