Leadership and Wicked Problems: Income and Wealth Inequality

This essay delves into the wicked problem of income and wealth inequality in Australia, examining its characteristics and societal impact. It explores how business enterprises contribute to this issue and the critical role leaders must play in finding effective solutions. The report utilizes the Competing Values Framework to propose how businesses can contribute to resolving this wicked problem. The essay then discusses the application of distributive leadership approaches for the effective resolution of income inequality. The paper analyzes the factors that hinder the resolution of the concerned wicked problem and suggests the leadership frameworks which will help in the effective resolution of the same.

Running head: LEADERSHIP AND WICKED PROBLEM
LEADERSHIP AND WICKED PROBLEM: A CASE STUDY OF THE WICKED
PROBLEM OF INCOME AND WEALTH INEQUALITY IN AUSTRALIA
Name of the Student:
Name of the University:
Author’s Note:

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EXECUTIVE SUMMARY
This report focuses on the wicked problem of income and wealth inequality and also the
manner in which this could be resolved through the usage of adequate leadership approaches.
The report firstly introduces the wicked problem of income and wealth inequality in Australia
and also identifies its major characteristics. The report next takes the help of the Competing
Value Framework to suggest the manner in which the business enterprises can help in the
resolution of this wicked problem. Lastly, the report concludes with a discussion of the
manner in which the leaders can take the help of the distributive leadership approach for the
effective resolution of this wicked problem.

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Table of Contents
Introduction................................................................................................................................3
Overview of the Wicked Problem..............................................................................................4
Wicked Problem Characteristics................................................................................................5
Justification of the wicked problem...........................................................................................6
Application of competing values framework to wicked problem..............................................7
Implication and interplay of identified competing values in the wicked problem...................10
Potential leadership implications.............................................................................................10
Conclusion................................................................................................................................13
References................................................................................................................................15

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Introduction
As opined by Ward (2017), wicked problems can be defined as the kind of problems
whose root causes are very difficult to pinpoint however at the same time it is seen that they
adversely affect the stability or the status quo of the contemporary world. Head and Alford
(2015) are of the viewpoint that over the years it had been seen along with the development
of the contemporary world in different aspects like economic, social, technological and other
aspects the number problems that the world presently faces has increased in an exponential
manner. This is important because of the fact that these wicked problems greatly affect the
quality of lives that the individuals lead and also in the longer-run is likely to adverse effect
its entire existence itself (Edmondson, 2016). As opined by Rose (2017), some of the most
important wicked problems that the world is presently facing are poverty, climate change,
income and wealth inequality, gender pay gap, discrimination and others. As a matter of fact,
one of the most important wicked problems that the people in Australia is the high income
and wealth inequality which can be attributed to the differences in the wages and also the
individual wealth held by the people (Alford & Head, 2017). In this regard, it needs to be said
that the business enterprises and also the leaders because of the influence that they wield on
the contemporary society have a pivotal role to play in the resolution of this wicked problem
so as to make the concerned nation a better place to live in for its citizens (Puckett, 2017).
However, the major problem arises because of the fact that the leaders as well as the business
enterprises itself face different kinds of issues which in turn hinder the effective resolution of
this wicked problem. In the face of this, it becomes imperative for the different business
enterprises and also the leaders to formulate or develop effective leadership frameworks
which will help them to resolve the wicked problem that Australia is presently facing in the
best possible manner. This paper intends to analyse the wicked problem of income and

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wealth inequality and thereby suggest a leadership framework which would help in the
effective resolution of the same.
Overview of the Wicked Problem
The wicked problem that has been selected for analysis in this paper is income and
wealth inequality which in the present times in the nation of Australia had emerged as one of
the most wicked problems. Western and Tomaszewski (2016) have articulated the viewpoint
that despite the economic advancements made by the contemporary world it had been seen
that more than 90% wealth of the entire world is being held by less than 10% people of the
world. This in turn had greatly contributed towards the wicked problem of income and wealth
inequality that the world especially the nation of Australia is facing presently. As a matter of
fact, an analysis of the income inequality within the nation of Australia reveals the fact that
1/5th of the people of the concerned nation have an average monthly income which is five
times higher than the average monthly income of the remaining population of the concerned
nation (Waddock, 2018). More importantly, a study conducted by Bell et al. (2018) reveals
the fact that in case of extreme situations, 1/100th of the people having the highest income
level earn 26 times more than the 1/20th of the people from the lowest income level. On the
other hand, another study conducted by Dabla-Norris et al. (2015) reveal the fact that less
than 20% of the highest earning individuals of the nation under discussion here hold more
than 2/3rd of the total wealth of the country and the lower segments of the population of the
concerned nation hold less than 18% of the wealth of the entire nation.
Guo, Buchmann and Schwarz (2019) are of the viewpoint that the discrepancy in the
wages earned by the individuals in the nation of Australia had given rise to the situation
wherein it is seen that a high level of wealth inequality exists within the concerned nation. In
this regard, it needs to be said that on the one hand there are the rich or the wealthy people
who have the kind of wealth which enables them to lead a highly superfluous affluent

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lifestyle and on the other hand there are the individuals who belong to the lower sections of
the population who are struggling to meet even the bare necessities of their life. As discussed
by Schor (2016), the huge discrepancy in the wages offered by the different Australian
business enterprises to their diverse employees is one of the major factors which had
contributed to the wicked problem of income and thereby wealth inequality in the nation of
Australia and thus the business enterprises would have to play a pivotal role in the resolution
of the same. In addition to this, the different business leaders related to these enterprises
would also have to play an integral role so as to ensure the fact that there is a minimal
discrepancy between the wages or the remunerations which are being paid to the employees
and thereby help in the resolution of the wicked problem under discussion here (Lyons,
Hamlin & Hamlin, 2018). However, at the same time it needs to be said that there are various
critical leadership issues that the leaders as well as the business enterprises to which they are
related are likely to face for the effective resolution of the concerned wicked problem.
Wicked Problem Characteristics
Western and Tomaszewski (2016) are of the viewpoint that there are various
characteristic features of the different wicked problems which as a matter of fact distinguish
them from one another and thereby requires the leaders and the business enterprises to take
the help of different measures for the effective resolution of the same. In the particular
context of the wicked problem under discussion here, that is, income and wealth inequality, it
is seen that there are certain important characteristics which as a matter of fact distinguish it
from others. In this regards, it needs to be said that some of the most important characteristics
of the concerned wicked problem are high discrepancy in the wages or the remuneration
offered to the individuals, difference in the amount of wealth held by the people, differences
in the lifestyle of the people on the basis of the wealth that they have, inability of the people
from the lower strata of the society to meet even the bare necessities and others (Puckett,

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2017). As a matter of fact, it is seen that because of the income and wealth inequality there
are many individuals in the nation of Australia who are unable to fulfil even the basic
requirements of their life.
Justification of the wicked problem
The wicked problem of income and wealth inequality had been selected because of
the wide-ranging effects of this problem not only in the lives of the people but also the
manner in which the different business enterprises of Australia and their practices have given
rise to this problem. The researcher had already discussed the impact of this wicked problem
on the lives of the Australian people and thus this section would highlight the contributions
made by business enterprises and their activities towards this issue. Hutchinson et al. (2015)
have articulated the viewpoint that one of the major factor which hinders or deters the
business enterprises or the leaders associated with them for the effective resolution of the
different wicked problem is the fact that the business enterprises in the present times are
capitalising on the wicked problems for the enhancement of the prospects of their enterprise.
For example, it is seen that the different leaders as well as the business enterprises try to
capitalise on the wicked problem of gender pay gap and thereby offer a lower wage or
renumeration to the women employees so as to reduce their operations cost and thereby
maximise their profitability (Edmondson, 2016). This as a matter of fact holds true within the
spectrum of the wicked problem under discussion here in Australia, namely, income and
wealth inequality.
As discussed by Dartey-Baah (2015), there are various factors which propel the
business enterprises to resort to the usage of the wicked problem of income or wage
inequality or discrimination and in the majority of the cases it is seen that they prove to be
beneficial for the concerned business enterprises. Bolden, Gulati and Edwards (2019) are of
the viewpoint that one of the most important aspects of the contemporary business enterprises

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is the fact that they required different kinds of workers or employees with diverse skills sets
or qualifications so as to effectively complete the various tasks or the job roles of the
enterprise. The resultant effect of this is that these employees or the workers are being offered
wages or remunerations on the basis of the skill sets or the qualifications or for that matter the
kind of tasks or the job roles that they perform within the spectrum of the enterprise. This in
turn gives rise to the discrepancy in the wages or the renumeration which are being offered to
the employees or the workers which in turn had become one of the root causes of the income
as well as wealth inequality within the nation of Australia (Fairhurst, 2016). Another issue
associated with the wicked problem under discussion here is the fact that the wages or the
remunerations are being offered to the employees or the workers on the basis of the
performance that they offer to the enterprises (Fahey, 2016). As a matter of fact, it is seen the
major differences in the income or the wages of the employees or the workers arises on the
score of the appraisals which they are given on the basis of the performance that they have
given. The resultant effect of this is that because of the differences in the skill sets or the
qualifications of the workers there arises a difference in the kind of performance which is
being given by the different workers and this in turn contributes significantly towards the
wicked problem of wage or income or for that matter wealth income (McConnell, 2016). In
addition to these two, there are other issues as well which in turn culminate in the income or
the wealth inequality which is predominant in the nation of Australia like the size of the
enterprise in which the employees are working, the kind of training which is being offered to
them and others.
Application of competing values framework to wicked problem
The effective addressal of the above identified critical issues the majority of which are
related to the aspect of leadership and the leaders of the business enterprises is important for
the resolution of the wicked problem under discussion here, namely, the income and wealth

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inequality in the nation of Australia. In this regards, Robert Quinn and Kim Cameron’s
“Competing Values Framework” is an important one which will enable the leaders and also
the business enterprises to effectively resolve the wicked problem under discussion here
(Liang & Sandmann, 2015). Hull, Robertson and Mortimer (2018) are of the viewpoint that
this framework offers a classification of four different corporate or workplace cultures which
the different business enterprises can take the help of, namely, clan, hierarchical, market and
adhocracy culture. As opined by Schor (2016), the effectiveness of these different corporate
or workplace cultures depends on the purpose for which they are being used. As a matter of
fact, in order to make a particular business enterprise an effective one along with the
formulation of a corporate culture, the managers and the leaders are required to perform
multiple roles so as to effectively address the needs of the employees, the demands of the
business and other problem (Ward, 2017). For the effective resolution of the wicked problem
under discussion here the Australian business enterprises taking the help of this framework
can develop a clan culture within their workplace.
Head and Alford (2015) are of the viewpoint that one of the most important aspects of
the clan culture is the fact that it not only highly flexible in nature but at the internally
focused and thereby helps in the creation of a friendly workplace environment wherein the
workers are being able to learn from other. In this regard, it needs to be said that one of the
root causes of the wicked problem of income and wealth inequality is the unequal wages or
remuneration which are being offered to the employees or the workers on the basis of the
work or the tasks that they perform within the enterprises. This in turn is affected by the skill
sets or the qualifications of the workers or the employees who a part of the concerned
enterprises. It is precisely here that the roles that the contemporary leaders need to play for
the resolution of this wicked problem gains prominence. Hutchinson et al. (2015) have
articulated the viewpoint that one of the most important job roles of the contemporary leaders

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is the fact that they are required to offer coaching as well as mentoring services to the
different employees or the workers of the enterprises so that they develop the necessary skill
sets or qualifications which are essential for the effective completion of the job roles that they
have been allocated or delegated. More importantly, in the majority of the international
business enterprises it is seen that the business leaders work in conjunction with the
management teams and also the human resource management teams so as to understand the
job design or the performance needs of the enterprise and thereby help in the modification of
the training programs which are being offered to the employees in likewise manner (Dartey-
Baah, 2015). It is likely that these initiatives will help the leaders to inculcate adequate skill
sets among the employees or the workers of the enterprise which in turn is likely to help in
the removal of the discrimination or the discrepancy which is being meted out to the
individuals in terms or wages or renumeration on the basis of the skills or the qualifications
that they have.
Lyons, Hamlin and Hamlin (2018) are of the viewpoint that an important job role or
the responsibility of the modern-day leaders is to help the employees or the workers in the
enhancement of their performance or for that matter help them to perform on par with the
expectations of the enterprises. As opined by Ford and Harding (2018), the contemporary
business leaders within the spectrum of the different business enterprises for the enhancement
of the performance of the different workers or the employees take the help of various
measures like motivation, rewards and recognition and others. As a matter of fact, recent
researches have clearly revealed the fact that the individuals who are motivated adequately
are likely to perform in a much better manner rather than the ones who are demotivated or not
motivated in an adequate manner (Carter, Mossholder & Harris, 2018). The resultant effect of
this is that the contemporary business leaders take the help of different kinds of methods like
rewarding the employees, giving them designations on the basis of the performance that they

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have given and others for the purpose of enhancing their performance. This role played by the
contemporary leaders is important because of the fact that this will enable them to help in the
obliteration of the inequality which exists in the appraisals that are being given to the
employees on the basis of the performance that they give which in turn is one of the major
reasons for the wage or income inequality seen among the different workers in the nation of
Australia.
Implication and interplay of identified competing values in the wicked problem
The above discussion makes it clear that the contemporary leaders are required to
perform a wide array of roles for the resolution of the wicked problem under discussion here.
For example, the contemporary leaders within the framework of the different business
enterprises would have to undertake the role of the mentors or the coaches for the
enhancement of the performance of the diverse workers or the employees but at the same
time would help them to acquire the right kind of skill sets which in turn would enable them
to perform as per the expectations or the desire of the business enterprises (McConnell,
2016). On the other hand, it is seen that the contemporary leaders are also required to
innovators and thereby try to create the kind of job roles which will help the employees to
perform in an adequate manner and thereby earn the kind of wage which will help them to
sustain themselves. Liang and Sandmann (2015) have suggested that these are important
because of the fact that the major causes of the income inequality and thereby wealth
inequality are the inadequate skill sets of the workers and also the differences in the
performance that they contribute towards the enterprises. Thus, it is likely that through the
effective usage of these measures the leaders would be able to help the workers or the
employees to get equal or adequate amount of wages or remuneration which in turn would
substantially help in the resolution of the wicked problem under discussion here.

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Potential leadership implications
Hull, Robertson and Mortimer (2018) have articulated the viewpoint that the
prominence held by the construct or the machinery of leadership within the spectrum of the
modern-day business world becomes evident from the fact that in the contemporary times
various kinds of leadership approaches emerged in the present times. On the other hand,
Hutchinson et al. (2015) have noted that effectiveness or the efficiency of the different
leadership approaches or frameworks which are being used by the contemporary business
leaders depends greatly on the situation or the context or for that matter the purpose for which
it is being used. In this regard, it needs to be said that a single leadership style or approach
cannot suit or serve a leader in all the situations and thereby they are required to amend or
modify their leadership approaches as per the needs or the demands of the situation. More
importantly, recent researches point towards the idea that the role played by the business
leaders as well as the leadership approaches taken by them substantially contributes towards
the resolution of the different wicked problems (Waddock, 2018).
As discussed by Rose (2017), one of the most important features of the different
wicked problems that the contemporary world is face can be attributed to the fact that they
cannot be completely resolved in their entirety. However, this should not stop the business
leaders as well as the business enterprises from trying to resolve them and thus they should
try to take small steps towards the resolution of the wicked problems. In the particular context
of the wicked problem under discussion here, that is, the income and wealth inequality in the
nation of Australia, it needs to be said that one of the best possible approaches that the
business leaders related to the different business enterprises can take the help of is the
distributive leadership approach. In this regard, it needs to be said that the effective usage of
the distributive leadership approach is likely to help the business leaders to if not completely