Strategic International Business Management Organisation Culture

Question: Describe about the Strategic International Business Management for Organisation Culture. Answer: Introduction Organisation culture involves various groups of values, norms, expectations and rules, which can manipulate the ways for engaging the teams and employees for cooperating in order to obtain the organisational objectives. According to Clarke (2013), in todays competitive business world, every organisation strictly follows suitable leadership styles as it directly influence the organisational policies, procedures and culture, which can affect the success of the organisation in a particular marketplace. In this report, there will be detailed explanation of three elementary leadership styles, such as authoritarian, laissez-faire and democratic, which have direct impact upon the ultimate decision making process of the higher authority of the organisation. The aim of this report is to evaluate the differences in between these above mentioned leadership styles and the implication of proper leadership styles in various organisations of United Arab Emirates. There will be illustration of required theories, which are closely related to the leadership styles of the organisation. Even the selection of appropriate leadership style has the capability to influence the basic productivity of the organisation (Iqbal et al. 2012). Identification and explanation of three different leadership styles Acar (2012) has mentioned that there are three basic leadership styles, which are globally recognised and followed by several organisations in order to reach to the desired goal of the organisation. The three classic styles of leadership involve Laissez-Faire, autocratic and democratic or participative leadership style. Laissez- Faire leadership suggests the allowing of the team members to take important decisions regarding some performed tasks. The leaders following this particular leadership style usually are minimally involved with the team and the entire team perform own role and responsibilities alone under few effective instruction of the leader. However, Du et al. (2013) have pointed out that in todays tremendous competitive business world, the Laissez- Faire leadership style has been proved effective and appropriate for the organisation. Leaders following Laissez-Faire leadership style make no fixed group regarding decisions and policies for further improvement of the team an d for ultimate success of the company. The team members are solely responsible for establishing own objectives in order to meet the goals in certain period. Even if there are any kinds of problem, they solve it with the discussion with the team members instead of asking any help from the leaders. Shareef et al. (2012) have referred that laissez-faire leadership style trusts its employees for making suitable and relevant decisions. The role of these leaders involves problem solving, self-monitoring in order to produce successful products. The authoritarian leadership style has been characterised as domineering as the authoritarian leaders usually make guidelines, policies and procedures for further development of the team. The authoritarian leaders are aloof and distant from its group and only the leaders decide the entire functions of the group, reward programs, punishments, demands, rules and regulations without asking any suggestions from the group member. According to Ng and Sears (2012), the basic responsibilities of the authoritarian leadership styles involve the unilateral task-assignment, problem solving, rule making, and the team members have to follow these guidelines. Mainly the organisations follow authoritarian leadership style in order to train and help the new recruited employees. Those organisations, which allow a perfect scope to its associated stakeholders to share ideas and suggestions regarding the improvement of the organisation, this particular leadership style is not appropriate. However, there are various contradictions regarding the implication of authoritarian leadership styles; as on certain occasion this particular leadership style can lead to high level of member dissatisfaction, absenteeism and turn over. Democratic leadership style has been characterised by the collective decision making process, involvement of the member of the group, camaraderie, restrained criticism and fair praise. Northouse (2015) has mentioned that democratic leadership style usually offer its group member a perfect scope and possibility to share own preference and choices regarding any issues of the organisation or performance. Democratic leadership style can be considered as participative leadership style also and it clearly reflects various democratic process and principles such as self-determination, equal participation and inclusiveness. However, Garca-Morales et al. (2012) have contradicted with this above stated statement and has suggested that the participative leaders often lack the power and formal position. Democratic leadership generally gains the authority power through the active participation, accountability, delegation of tasks, responsibilities and cooperation. The fundamental roles and respons ibilities of the democratic leadership style follower involve the willingness for holding the accountability of their taken decisions and actions within the organisation. In an international corporation, where a close-knit and interconnected relationship has been followed, democratic leadership style is appropriate for them. The basic function of democratic leadership involves the equal distribution of various responsibilities within the whole group of the organisation and with this process; it empowers the group member with the facilitation of the group deliberations. The followers of democratic leadership style are willing to maintain their own freedom and autonomy of the group. Participative or democratic leadership style can be considered as a satisfying medium of working both for the group member and for the leader for success of the organisation. The followers of this particular leadership style allow the team member to think creatively and independently in order to perform th e allocated tasks in appropriate manner. However, there are several contradictions regarding the application of participative leadership style as there are very less guidance and control upon the group members in order to monitor and evaluate their performance of the tasks within the organisation. In an addition, the leaders following participative leadership style usually helps the team member to set own goals for further professional development instead of imposing own decisions on the team member. This entire process of participation creates a great working environment within the company, which help to complete the tasks within short period than the decided one. Evaluation of the differences in between the leadership style According to Choudhary et al. (2013), the basic differences in between the leadership styles and its traits suggest the subtlety; however, all of these above mentioned leadership styles encompass completely different physical, intellectual, social and emotional characteristics. The managers usually selects suitable leadership style according to the business operations of the organisations as only appropriate leadership style possess the possibility to bring the best performances from its employees in order to fulfil the established goals for providing a tough competition to the competitor companies in the specific industry. THE One is a famous retail MNC in United Arab Emirates and Thomas Lundgren is the entrepreneur of this company. The dream of these particular leaders suggests preventing the world from overpriced and soulless furniture retailer. With the following of authoritarian leadership style, Thomas Lundgren has achieved own dream of providing best, innovative and luxurious furniture to the customers of UAE in cheap price. The concept of THE One is unique one and with a thorough market research, this leader has determined the contemporary trends in the furniture industry. With following the autocratic or authoritarian leadership style, Thomas Lundgren make decision alone regarding the business operation of THE One without asking any kind of input from other associated employees of the company. The managers hold the higher position and possess the total authority of taking decisions for the development of the organisation and imposing own will upon employees in order to bring the best performances from them. No employee challenges the adopted decisions by the leader, whereas the participative leadership style stands apart from this authoritarian leadership style. Participative leadership style always encourages employees to provide and share own suggestions and ideas regarding the performance of some tasks or during the ultimate decision-making. Giltina ne (2013) has contradicted that in todays competitive and technological business world, there are different and vast opinion available, therefore, the managers should not confined the employees for providing suggestions as it may provide completely different notion, which cannot be considered from the perspective of the manager following the authoritarian leadership style. On the other hand, laissez-faire leadership style lacks a direct method of supervision of the associated employees and it also fail for providing a constant process of providing feedback of the team members. Khan et al. (2012) have suggested that those employees, who are well trained and highly qualified, require very less supervision while performing a task and these employees are perfect of the organisation, which follows laissez-faire leadership style. Theories related to leadership, motivation and change management The theories related to the leadership are applicable for the modern organisations as these theories are suitable for modern days business environment. Trait theory of leadership style involves the basic belief that leaders are born with leadership quality and capability, therefore no training system can make a leader. However, Chaudhry and Chaudhry (2012) have confirmed that sense of responsibilities, intelligence, values and creativity can be enhanced by suitable training process. The trait theory of the leadership style is solely focussed on assessing the physical, social and mental characteristics for gaining a perfect understanding of combinations, which are general characteristics among the great business leaders. There is an argument, which reveals that potential leaders usually share common personality traits for completing their business operations. However, these traits are the external behaviours that is emerged from the internal processes and beliefs, which play an essent ial role for potential leadership. Behavioural theories concentrate on the behaviour of the leaders for getting their tasks done in stipulated time. De Vries (2012) has mentioned that the autocratic leaders make important decisions without any kind of prior consultation with the team, whereas the democratic leaders allow the entire team to provide efficient feedback before the leaders make ultimate decision. On the other hand, the leaders following laisses-faire leadership style hardly interfere with the performance of the tasks of the entire team, which is highly capable of doing a task in proper manner without the interference of the leaders. Behavioural theory clearly distinguishes various different behaviours of the leaders following completely different leadership style. Men and Stacks (2013) have suggested a great and efficient leader should employ different behavioural leadership style for different situation. As Omnicom Media Group of United Arab Emirates is famous MNC, therefore the leaders of this enterprise follows the contingency theories in strict manner as this particular theory helps the leader to deal critical situations with incorporating appropriate decisions. Von Krogh et al. (2012) have referred that contingency theory predicts the suitable style a leader should employ after understanding the circumstances. Contingency theory clearly determines the full support of the team in order to detect potential way of leading. The leaders of Omnicom Media Group understands the crucially of every situations and partake required decisions for mitigating any encountered challenges. Sadeghi and Pihie (2012) have suggested that following the contingency theory, there are hardly any kind of psychological profiles, which establishes enduring traits that are closely interlinked with the effective leadership style. Hertzbergs two-factor theory of motivation also denotes various aspects of follow ing suitable leadership styles within the organisation in order to complete the allocated tasks for the ultimate betterment of the company. Hertzbergs two-factor theory is also known as motivation hygiene theory or dual factory theory as this theory is solely associated with the satisfaction and motivation of the employees. The motivational factors can lead the employees to work harder for completing the tasks in proper manner. As opposed by Lam and O'Higgins (2012), the motivational factors also helps an employee to enjoy own tasks for career progression and a feeling of recognition in a particular industry. On the other hand, the hygiene factors are responsible for dissatisfaction of the employees because of absent of salary, appropriate policies and regulations of organisation, benefits and fundamental relationship with the colleagues and the higher authority. Maslows Hierarchy of Needs theory suggests that the basic requirements of an individual should be satisfied in order to b e motivated for performance and for achieving the higher level of requirements or further development. Metcalf and Benn (2013) have stated that Maslows Hierarchy of Needs theory clearly involves five important levels, such as psychological, love, safety, esteem and self-actualisation. If a leader follow this theory, then the individual should be in good health, secure and safe relationship with the associates as it enhances the confidence of taking any suitable decision for own performance and the entire team (Hackman and Johnson 2013). Evaluating theories for managing diversity and its potential implementation in cross-cultural context The potential usage of the cross-cultural group within an organisation is perfect for providing an approachable source of various innovative, creative thinking and experiences, which can develop a competitive positon in a company. Wong and Laschinger (2013) have stated that the leadership theories are suitable for managing the cultural diversity, as it is effective to mitigate any cross-cultural issues in smooth manner. As DHL is an organisation of package transport and transportation, therefore, it requires involving the application of various leadership styles by the leaders as it helps to bring the best results for the company in this competitive business world. The existing cultural differences in DHL are responsible for a successful completion of relevant projects. The application of contingency and behavioural theory truly helps the leaders of DHL to plan adequate business operation in todays multicultural business community in global manner. With the employment of trait theory of leadership, the managers and leaders of DHL avoid the cultural misunderstandings that may affect the productivity and sales revenue of the company. The leaders are culturally sensitive for promoting the motivation and creativity with the help of flexible leadership. All of the above-mentioned theories can be considered to balance an impish relationship in between motivational orientation, definition of self, people and orientation for risk assessment and management. The behavioural theory determines the attitude and behaviour of the leaders of DHL, which helps to perceive proper assumptions regarding the management of diversity in the cross-cultural context within the organisation. Hertzbergs two-factor theory of motivation can be applied for managing cultural diversity within the cross-cultural context of DHL. Nixon et al. (2012) have argued that the application of Hertzbergs two-factor theory implies a perfect balance in between a productive workforce and satisfied employees. The application of this theory help to motivate the employees in order to understand that there are supported and appreciated. Even there are policies of collecting employee feedback for ensuring that employee can progress and grow in professional level within DHL. The modern leaders follow all these theories only because to prevent the job dissatisfaction for ensuring that the employees feel treated in right manner. Sahaya (2012) has referred that the trait theory and behavioural theory involves maintaining a possible workplace conditions and fair payment. The leaders of DHL pay positive attention to the team in order to form a supportive relationship with the associated stakeholders. T he higher management have understood that every employee are different, therefore, the motivational factors vary from one employee to other. The benefit packages of the higher authority of an organisation are always different. Global business of the organisation can be succeeded only with the incorporation of effective leadership, mutual respect and cross-cultural communication. A potential cross-cultural team will provide a perfect source of innovative thinking and working experience for enhancing basic competitive situations of the organisations for resolving various communication barriers in potential manner. All the leadership theories help to achieve the project objectives after ignoring the potential risks. The leaders should be sensitive in cultural way and promoting motivation and creativity with employing flexible leadership styles (Renko et al. 2015). Promotion of ethical and professional approach to organisations It is essential for an organisation to concentrate on the accomplishment of the key goals of the companies in order to develop a good working relationship within the workplace after ensuring important ethical conduct within the employees. Hackman and Johnson (2013) have mentioned that ethical conduct enables that business organisations maintain a perfect reputations for maintaining the professional values and principles, which are directly considered with the mission, vision and objectives of the organisation. The leadership style of the leaders promotes ethical and professional approach towards an organisation. In order to promote an ethical and professional approach, the organisation should arrange employee training for help them to know the existing rules, regulations, policies and procedures of the organisation. THE One holds regular session on the application and maintenance of ethics within the organisation. Kool and van Dierendonck (2012) have suggested that organisation shoul d provide rewards to those employees, who strictly follow ethical behaviour. Even there are staffs from challenge management for holding a regular discussion with the employees for working through effective ethical issues, which may help for finding various paths to brainstorm. The leaders should set an example of employing proper ethical behaviour in order to help the employees to follow the leaders. Most of the organisations in this competitive economic business world establish own rules, regulations and procedures for evaluating, monitoring and assessing the workplace performances of the employees. The organisations should incorporate transparency in their every activity and should educate every employee regarding the risks within the company. A fair ethical behaviour maintains an adequate association in between the leaders, management and other stakeholders, which help to obtain the fixed goals within a stipulated time and enjoy a best position in a particular industry (Renko et al. 2015). Conclusion As the leadership styles play an important role for determining the culture, rules, expectations and values of an organisation, therefore, every company should select suitable leadership style, which is appropriate for that particular organisations circumstances. The proper selection of the leadership style will increase the job performance of the employees. On certain occasions, the organisation culture can be motivated by several factors, which are closely interlinked with the incorporation of leadership styles. An effective leader understands the situation of the company and takes apt decisions without any emotional forces. 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