Theories of Leadership and Challenges of Cultural Difference in People Management and Organization

This article discusses the theories of leadership and the challenges of cultural difference in people management and organization. It explores different leadership styles and approaches, such as situational leadership and supportive leadership, and how they can be applied in a multinational organization. It also addresses the communication barriers and the impact they have on the organization, as well as the change process for enhancing sustainability and boosting the organizational image. Additionally, it covers the importance of motivation and different approaches to improve performance.

People Management
and Organization

For managing and leading people, it is essential for management of a firm to
adopt effective leadership theories. This would help in not only improving performance
of workplace but also gain their efforts in achievement of business objectives, in a short
span of time (Noe and et.al., 2017). With management of human resources, utilisation
of other resources like capital, technology and other also becomes essential for a
company. This will lead to accomplishment of desired goals as well as gain competitive
advantage over other rival companies. It is essential for a company to correctly manage
its business activities so that organisation can perform task and activities in appropriate
manner. Organisation needs to use correct and effective methods in order to motivate
its employees. It is important for organisation to identify issues and challenges in order
to manage business activities in correct manner. For this report chosen company is
Young Juvenile. This organisation is offering high quality products and services in order
to meet with customer requirement. Young Juvenile company is multinational
organisation and it is conducting its business activities in different part of the world.
Design and management department of this brand is operationalised in Italy and
France. Production of goods are manufactured in respective country. The product range
of this organisation consist of premium quality clothing, shoes, bags as well as
insurance policy in order to protect valued goods such as diamond and gold ornaments.
This report includes different theories of leadership or approaches that will help in
performing business activities in effective manner. It consists of different issues or
challenges faced by organisation with difference in cultural. Communication challenges
and issues has been identified and process of changes has been determined in order to
perform task correctly. Various motivational methods and approaches has been
evaluated in order to perform business task in correct and effective manner.
Theories of leadership to lead an organisation, with justification of
selected one
Leading an organisation like Young Juvenile, that operates business at large
level, considers as most difficult function of management. For this purpose, managers of
such firm focuses on employee engagement, improve in performance management and
more, to lead business in competitive manner. To perform these activities, they need to
adopt effective leadership style like democratic, autocratic and more. But before

adopting any style, they must acknowledge with different theories of leadership.
Leadership is considered as an ability of person to influences as well as motivate
employees in order to perform business activities in effective manner (Drucker, 2013).
There are different ways though which respective company can effective conduct
business operational in correct manner. There are many leadership theories as well as
leadership style that will help in providing guidelines to organisation. Leadership styles
are very supportive for conducting business task and activities in appropriate manner. It
is responsibility of leader to help and support its employees to conduct business
activities in effective and efficient manner. With the help of correct and appropriate
leadership respective organisation will be able to achievement desired goals and
objectives. There are various leadership approaches or theories such as situational
leadership, behavioural, contingency, participative, trait theory of leadership and so on.
All of these leadership theories are very different for each other and have different way
to guide or influence employees. In this regard, Leaders or managers of a multinational
organisation like Young Juvenile to lead business can adopt Supportive leadership
theory concept, which is helpful in performing task and activities in correct and
effectively manner. Supportive leader encourages its employees to give their support in
decision making, process that helps in developing an effective teamwork. In this type of
leadership style, leaders take part with employees in performing organisational
operations as well as share information and knowledge with its employees. Trait theory
of leadership is based on the assumption that leaders are born with certain quality that
help in becoming a great leader (Lloyd-Jones and Rakodi,2014). This leadership theory
has suggested that there are some traits of leadership which is very supportive in
influencing its followers as well as motivating them to perform task in correct manner.
Leaders must have specific quality of characteristics that will lead to perform task
successfully. Key characteristics of the great leaders includes knowledge, confidence,
honesty, decision making skill, initiative, creativity, charisma and many more.
Similarly, to handle different situations at workplace and leading an organisation
in systematic way, another main approach that managers of Young Juvenile can adpopt
is situation leadership. It is mainly helpful in understanding as well as evaluating needs
and requirement of employees (Parker and et.al., 2014). In situational leadership

approach leaders and managers of respective company needs to adjust their style as
per requirement of organisation. This is very helpful in performing business activities in
such a manner that organisational goals and objectives are achieved. Organisation with
situational leadership style are more focused in changing the style of leadership rather
them employees. It is responsibility of leaders to changes their leadership style as per
requirement of organisation as well as meet with the needs of company. In this
approach of leadership, leaders are changing their style of attract as well as influencing
employees in order to conduct business activities in correct manner. Behavioural theory
of leadership is completely based on the behavioural of leaders. This leadership theory
has suggested the leaders are not born but the behaviour of a person lead to a great
leader. It is essential for a leader to behave in correct and appropriate manner in order
to influence as well as motivate employees. This theory of leadership is based on the
study of two important universities (Zhang and et.al., 2015). Ohio state university has
conducted study of leadership in order to identify the appropriate traits that is required in
effective leader. This is majorly concerned with task oriented leaders and people
oriented leaders. University of Michigan has identified that leaders behavioural should
be effective in order to motivate and influence its employees. This is very helpful in
increasing the performance of employees as well as achievement of desired objectives.
Illustration 1: Situational leadership theory

Respective organisation should use situational leadership and Supportive
leadership in its business as this will help in performing task in effective manner. This
type of leadership will help in encouraging employees as well as increasing productivity
as well as performance of organisation. Supportive leadership will lead to improve job
satisfaction of employees and motivate them to perform task in effective and efficient
manner.
Challenges of cultural difference with theories to mitigate inevitable
interpersonal and operational issues
As due to operating business at worldwide level, therefore, it becomes essential
for large organisations to hire employees from different geographical area. This would
provide a number of benefits like increasing productivity, creation of innovation by taking
different perspective of people etc. This has impact over performance of employees as
well as organisational productivity in both negative and positive manner (Morse, 2016).
There are different theories that will help in understanding the culture, national culture
as well as diversity. Culture includes customs, beliefs, traditions of a particular areas.
This will lead to have impact over the behavioural as well as personality of an individual.
In respective organisation 60% employees belongs to own nation culture where are
other 40% employees are from different culture. It is essential that company is
considerer culture as well as value their belief and attitude in order to enhance
performance of employees. In context with Young Juvenile, as thousands of employees
are working here, from different background, therefore, it brings diversity in this
company, where employees mostly belong from different cultures and background. But
it highly affects organisational culture of this firm, that impact on working performance.
So it is essential for this company to motivate diversity for encouraging employees as
well as their behavioural. There are several interpersonal as well as operational issues
faced by respective company due to different in culture (Czarniawska, 2014). By
supporting diversity with in business respective company will be able to achieve desired

goals and objectives. This will help in enhancing overall performance of employees as
well as gaining competitive advantages over other rival companies. There are different
methods that could be used by respective company by encouraging diversity in
organisation. Respective organisation needs to provide fair and equal opportunities to
its employees. This will lead to reduces in issues that occur due to difference in culture
of individuals. This will help in gaining trust from employees as well as conducting
business activities in correct manner.
Communication barriers between employees with its impact
over organisation.
Communication refers to the way in which ideas and though flow in organisation
in order to enhance business activities. It is very important for respective organisation to
improve the flow of communication in organisation in order to achieve desired goals and
objectives. Young Juvenile company is performing its business activities in different
parts of the world. It offices includes various employees from different organisational
cultures. In this 60 % employees are from the home country where as other 40 % are
from different counties (Dries, 2013). Staff member of respective company have
different languages and this is considered as one of the major barrier in organisation. It
is very important for this company to resolve these communication issues and barriers
in order to perform task effectively and efficiently. But increasing diversity at workplace,
arise a number of communication barriers in respective firm, due to linguistic issues. It
includes communication barriers, which can be defined as issues that arise in
organisation due to lack of communication or miscommunication among workers due to
cultural issues, language barrier, perception barriers and more. These communication
barriers will lead to have major impact over organisation as well as its activities. When
communication barriers are increasing in organisation, it will lead to have impact over
relationship of employees. There will increasing in organisational conflicts and this will
lead to decrease in job satisfaction of employees. So, it highly affects the organisation
performance of Young Juvenile in negative manner, because due to communication
barrier, it becomes difficult for management to develop collaboration among workers,
which arise issues in achievement of business goals as well.

There are different ways that will help respective company to reduces
communication barrier in organisation. It is very important for respective company to
analyse as well as evaluate all communication barriers in order to reduces its negative
impact. Young Juvenile company needs to resolve communication barriers in order to
increase employee relationship (Nesheim and Gressgård, 2014). This company needs
to use common language while communicating within organisation. This will help in
reducing communication barrier as well as conveying ideas and though in correct way. It
is essential that each and every employees is well aware the language, tone as well as
content of message during communication process. This will help in reducing the impact
of communication barriers from organisation. By reducing communication barriers that
company will be able to develop strong relations in organisation. This will help in
engaging each and every employee with organisational activities and employees will
consider themselves as a valuable part of organisation.
Change process for enhancing sustainability on the basis of
ethical, moral and ecological approaches to boost organisational
image
Change management is considered as the important function of an organisation
that mainly concerns on leading the organisation as per current trend of marketplace.
By implementing changes in organisational activities according to demand of targeted
customers, organisations will be able to enhance their business process (Talib, 2013). It
is crucial for Young Juvenile organisation to perform business activities in ethical, moral
as well as ecological manner as this will help in enhancing sustainability in order to
boost the image of company. Change process includes various steps that will help in
identifying issues as well as using correct method to change. This is well known
company which is providing high quality products and services to its customers. It has
been identified that in recent time performance of respective company is declining. This
organisation needs to identify as well as implement a process of changes that will help
in increasing performance of organisation in ethical manner. In changes process
respective company needs to create a vision which includes sharing vision as well as
directing other employees in order to guide them. Young Juvenile company needs to
using new and innovative technology in organisation in order to increase performance of

employees. Furthermore, changes need to communicated to different people of
organisation so that they perform task in required manner. After this respective
company needs to identify all those obstacles as well as try to remove it in order to
improve organisational activities (Khan and Khan, 2015). It is essential that this
company is providing training to employees so that they can use technology in correct
manner. Along with this, for Young Juvenile company, it is essential that change
process needs to be identified as well as evaluated in correct manner. This changes
process will help in understanding that business activities are conducted with moral,
ethical as well as ecological friendly manner. By this respective company will not lead to
have harm on any individual or society.
Process to improve performance by motivation and construction
of different approaches
Motivation plays a crucial role in growth and development of organisation as this
help in improving performance of employees. Motivation can be described as a process
of influencing as well as encouraging employees in order to perform task in effective
manner. There are different ways though which respective organisation can motivate its
employees in order to increase the performance of employees. Motivation can be
defined as an effective tool or techniques that could be used by company for improving
productivity and performance of staff members. Motivation refers to a process that will
lead to stimulate employees as well as encourage them to use their skill and potential to
perform business task (Szczepańska-Woszczyna, 2014). This is very helpful for
employees as well as organisation as through effective motivation techniques personal
and organisational goals could be timely achieved. It has been noticed that performance
of Young Juvenile company has declined, so it is essential for managers and leaders to
use correct and appropriate techniques for motivating employees. There are different
methods and techniques that could be used by respective company in order to improve
the performance as well as boost functioning of organisation. There are various
motivation techniques that will be supportive for Young Juvenile company in
achievement of desired objectives. This company should provide benefits and
incentives to employees for motivating them. This will help in increasing the

performance of employees as well as encroaching them to work with full potential.
Monetary benefits are very effective way of motivating employees and enchaining
employee performance. Young Juvenile company should appreciate for the great work
done by employees. All of these are considered as an effective method for motivating
employees. There are different motivation theories that will help in performing business
task in correct and appropriate manner. It has been analysed that for motivating
employees organisation needs to full fill their needs and wants. There various
motivational approaches and theories that will help in understanding needs and
requirement of employees (Walsh, 2015).
Concerning on improvement in organisational performance, management of
Young Juvenile can adopt Herzberg’s Two-Factor Theory of Motivation. This theory
mainly focuses on encouraging workers to work at their level best and retain in business
for longer period by providing job satisfaction in them. For this purpose, factors that may
provide job satisfaction among employees are broadly classified into two main
categories as Hygiene and Motivators. Hereby, Hygiene factors focuses mainly on
physiological needs of workers, where if an organisation fails in completing such needs,
then it leads to arise dissatisfaction among workers. It includes the basic necessities of
employees that is essential for living a healthy and better life. Young Juvenile company
should focus on food, water, shelter as well as other basic needs of employees in order
to motivate them. Along with this, it also management of respective firm to focus on
safety need of employees, which consist of all those elements that are important for
protection of employees. This need includes life and job security, freedom, safe
environment and so on (Saccani, 2013). It is important for respective company to
provide safe and secure working environment to employees in order to motivate as well
as encourage. Similarly, in context with Motivators factors, it states to recognise
performance of each worker and provide them rewards timely. This would help in
motivating others to improve their performance and providing job satisfaction as well.
This factor also includes appreciation, promotion, responsibilities and so on. It is
important for respective company to provide respect as well as additional power and
authority to employees in order to satisfy esteem needs.

Critical analyse on emotional intelligence, recruitments strategy
and the notion of work for exploring ways to achieve effective
leadership and employee engagement.
There are different ways though which effective leadership could be achieved by
organisation. Employee engagement play a essential for in enchaining business
activities as well as effectively performing task. Leadership play a crucial role in growth
and development of organisation as well as conducting business activities in
appropriate manner (Bondarouk and Ruël, 2013). It has been analysed that leadership
is not only related to influencing or motivating employees but it includes emotional
intelligence as well as accurate strategies. Emotional intelligence refers to the ability of
a person that will help in controlling emotions of a person. It is important the leaders of
respective company have emotional intelligence as this will help in influencing
employees. Leaders with high emotional intelligence will be able to control as well as
manage people in correct and effective manner. Leaders needs to developed
appropriate recruitment strategies for attract as well as recruiting highly skilled
employees within organisation (Pawar and Chakravarthy, 2014).
Employees will right skills and capabilities will be able to perform business
activities in effective and efficient manner. This is very helpful in enhancing employee
engagement within organisation. By enhancing employee engagement respective
company will be able improve job satisfaction as well as increase their overall
performance. Notion of work in groups and team will lead to create a feeling of
belongingness and employees will be able to develop better relationships (Khodadadi
and Feizi, 2015). It significant for a leader to have required skills that will lead to building
an effective team in organisation. This will help in performing task and activities in
appropriate manner as employees will focus on completely job role in effective way.
From the above discussion it can be concluded that it is critical for an
organisation to manage its people as well as organisation in order to achieve desired
goals. There are different ways that could be used by company for enhancing
performance and productivity of employees. Effective leadership as well as motivation
techniques are very important in encouraging employees. There are different leadership
theories as well as approaches which needs to be analysed and evaluated by

organisation in order to correctly guide and influence employees. Participative
leadership is very effective style of leadership and this will lead to sharing more
information and knowledge with employees. Maslow hierarchy of need theory is very
supportive for providing guidelines to organisation in order to meet with employees
needs. There are various issues and challenges occur in organisation that will lead to
that will lead to have negative impact over company. In an organisation employees with
different culture and background are working which will lead to create communication
barriers. It is essential for organisation to manage these issues in correct and
appropriate manner in order to reduce these issues. It is essential for organisation to
undertake a process of change that is required to show proof of awareness as well as
application of ethical and moral approaches. This will directly lead to boost the image of
organisation as well as meeting with demand. It has been analysed that emotional
intelligence, recruitment, strategies as well as notion of work will lead to effective
leadership and engagement of employees.

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