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Leadership and Management Assignment
1. Introduction
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The concept of the virtual workplace has gained popularity after the advent of the internet and the world, wide and web. The popularity of virtual teams has been growing rapidly, more so during the period of unprecedented changes which have sprung forth due to the recent pandemic which has created an uncertain period for the business where the internet and virtual spaces have made it possible for them to go on (Whillans, Perlow and Turek, 2021). The utilization of virtual teams helps businesses to easily contact their employees regardless of the distances with the blessing of new and advanced technology. Along with this, virtual teams can decrease and save up organizational costs by reducing the transport and associated travelling expenditure. There are certain challenges businesses face due to this emerging trend of conducting business activities through virtual teams. Instil is a UK based software manufacturing company which deliver transformational and software products for over 15 years to consumers.
One of the most common challenges is the communication issues as the teams work remotely. Along with this, the organization also face the challenges of poor team relationship and lack of engagement and focus among the employee. In this regard, the report will highlight the challenges faced while managing the virtual teams faced by the software manufacturing company (Klonek et al., 2021). Following the discussion, the report will be highlighting the challenges associated with the leadership and management in the software manufacturing company Instil. The last section of the report will highlight the possible solutions for mitigating such highlighted issues to enhance efficiency to manage the virtual teams more efficiently and motivate the employees more effectively in association with a recommendation for a more effective leadership style.
2. Leadership and Management Challenges within Current Business Environment
2.1 Discussion on the challenges of leadership in terms of the chosen area 1 (leadership in Leading Lack of employee engagement and Managing Virtual teams)
Problem name:
Discussion of cause and effect
In a wide range of professions, working from home is becoming more common. Because of the COVID-19 pandemic, more companies are allowing employees to work from home, which is helping to level the playing field and safeguard those who are most at risk (Newman, Ford and Marshall, 2020).
There are many advantages and cons to working remotely, such as saving time and money on commuting and fostering a better work-life balance, but there are also some drawbacks. Working from home can cause remote employees to become alienated from their employers and their work, which can have a detrimental impact on their productivity. Engaging remote workers is essential to the success of a remote team or company, or even an individual (Morrison-Smith and Ruiz, 2020). Remote workers must work harder to build relationships because they do not have the opportunity to socialise in the break room or at each other’s desks. Isolation and loneliness, as well as a lack of dedication to the company’s vision or goals, are all possible outcomes of a lack of involvement in the workplace. More than 60 per cent more errors and faults occur in the workplace when people are disengaged from their jobs, according to a recent study. Actively disengaged workers are actively looking for new employment or opportunities. Businesses can lose between $450 billion and $550 billion a year due to employee disengagement and poor performance because of apathy and poor performance.
Organizational teams that have a high level of employee engagement have a 17 per cent boost in production and a 41 per cent drop in absentia. Customers and processes benefit from a 21 per cent boost in profitability as a result of these levels of participation. Increasing investments in employee engagement by just 10% can result in an annual profit yield boost of $2,400 per employee (Robert Jr and You, 2018).
2.1.1 Discussion of Management & leadership theories under leading and managing virtual teams
Possible ways of addressing the issue
The various leadership theories which can be implemented by Instil to mitigate the issue of lack of employee engagement while working in virtual teams are as follows:
“Democratic leadership”
“Democratic leadership” sometimes referred to as participatory leadership, is characterised by the inclusion of a wide range of stakeholders in decision-making. From businesses to schools to governments, this style of leadership may be seen. No one but the democratically elected leader should bear the brunt of the burden. Instead, their job is to spread the load and get as many people on board with the mission as possible (Fries, Kammerlander and Leitterstorf, 2021). Democratic leaders must also enable their constituents to make wise judgments. Because the process of involvement can help them deepen their involvement and become more adept at decision-making, critical thinking, and other essential abilities, it is a good idea to encourage people to take on shared tasks. This is the foundational principle of this leadership style.
“Servant leadership”
Leaders that practise “servant leadership” put the needs, growth, and well-being of their subordinates first. To put it another way, outstanding leaders put the needs of their company, its people, and the community above their own. Strictly hierarchical, transactional, and bureaucratic types of leadership are all in direct opposition to servant-based leadership. The chief features of this style include:
- Committed to meeting others’ needs
- Selfless and modest
- No desire to retain power or material assets
- A commitment to the community
- Extremely empathic
(Source: Al Khajeh, 2018)
Owing to these characteristics, servant leaders can effectively earn the respect and commitment of the employees, thus making them more engaged with the company and their jobs.
“Laissez-faire leadership”
Laissez-faire leadership is opposed to authoritarian leadership. Rather than having a single leader make all organisational, group, or team choices, laissez-faire leaders make minimal judgements and outsource responsibility for workplace solutions to their workforce. Also referred to as “delegative leadership,” laissez-faire examines each employee’s unique qualities and fosters an environment suitable to persons with a forward-thinking brain and a capacity for self-sufficiency (Gandolfi and Stone, 2018). Employees are authorised to perform occupations that need their talents as long as they do not harm the business’s operation. Employees are tremendously motivated by laissez-faire leadership. They are driven by their own beliefs and ideas, rather than by clear expectations or orders. They are aware that they have power over their assigned section of the project and are eager to exhibit their capabilities.
“2.2 Discuss the challenges of leadership and management of the chosen area 2 (leadership in motivating employees during the time of unprecedented change)”
Problem name: Issues in Adapting to the unexpected changes
Discussion of cause and effect
This discussion will be primarily focused upon the unprecedented changes that the employees had to face due to the current COVID-19 pandemic.
As a result of COVID-19, a “new normal” has emerged, and all organisations, particularly human resources departments, are scrambling to stay up. The phrase “unprecedented” and “once in a generation” is used so frequently to describe the massive upheaval in the labour market that it has become a joke on social media. What businesses across the world are dealing with is that they’re in a position they’ve never encountered before, and they’re trying to figure out how to get their bearings. For companies, the pandemic presents a new set of difficulties that will necessitate innovative approaches if they are to stay competitive in the next years. First and foremost, employers must address critical human resources concerns that have a ripple effect on other parts of their company’s success. The largest issue for HR right now is adapting to an ever-changing, volatile, and uncertain environment. Governments and health agencies throughout the world are expressing concern about the possibility of new outbreaks of COVID-19. There are several restrictions and norms in place to keep people safe and prevent the spread of disease. Consumer demand is expected to fluctuate in reaction to fast-moving trends and health concerns in an ever-changing environment. Organizations will be forced to respond swiftly to these changes, increasing the need for flexible and responsive supply chains. For firms, this means examining their capacity and being flexible about what their employees can manage. It’s also important to remember that the current circumstance is placing a lot of stress on the workers. While physical health is a top issue, human resources managers will also be considering how they can best support their employees’ mental health in these trying times.
Priorities that pre-existed COVID-19 include workforce sustainability and futureproofing, and this is not a one-time event but rather an ongoing issue. As a result, HR managers will need to gather, manage, and evaluate workforce and labour market data, as well as new HR technology.
2.2.1 Discuss Management & leadership theories under motivating employees during the time of unprecedented change
“Transformational leadership”
People and the world around them are meant to be transformed by what is known as “transformational leadership.” To attain its ultimate goal of transforming followers into leaders, it must first create value and positive transformation in its followers (Huertas-Valdivia, Gallego-Burín and Lloréns-Montes, 2019). When a leader and their followers create a mentor-buddy connection, it fosters creativity and makes the company more equipped to deal with any sort of change.
“Authoritative leadership”
When an authoritative leader establishes the goals and defines the processes, he or she does it with little or no involvement from his or her team members. People are more likely to work together toward similar goals when their leaders have authority. The capacity to inspire, motivate, and influence others are one of the hallmarks of authoritative leaders (Sousa and Rocha, 2019). This is often due to their ability to clearly explain a company’s strategic goals to all levels of the organisation. As a result, it may be necessary to exercise strong control over employees at times of extraordinary obstacles to steer them through the problems.
“Situational leadership”
Leadership styles aren’t all the same, according to the situational theory of management. Instead, it’s a matter of determining what kind of leadership and tactics are most appropriate for the situation. The notion of situational leadership assigns a leadership style to a certain scenario depending on a variety of variables. Situational leaders adjust their leadership style to the degree of competence and dedication of their staff (Demir and Budur, 2019). To maximise employee potential and achieve corporate deadlines or milestones, situational leadership employs a flexible style of leadership. When it comes to coping with unforeseen problems, this is extremely important.
- Case Study Analysis
3.1 The analysis of the first chosen area
To get on top of the issues faced by Instil in dealing with virtual teams, the implementation of the “Democratic Leadership” style is most likely to be the best approach. This is such a leadership style where all the participants are made at ease to take voluntary participation in the process of the decision-making process. This approach of leadership is also invariably known as “participative leadership” or “shared leadership” (Liggett, 2022). However, this leadership style is inevitable for any private business, corporate sector to achieve excellence especially the involvement of the active and agile workforce. Whilst it is a typical belief that the leader is the ones who are supposed to craft and take the favourable decision for the company or the business which can inspire the employees to be brisk in their work with the surmounted interest. The leaders are highly responsible if the workforce any establishment goes lethargic in terms of performance as they have a crucial role in running teams, employee engagement, and performance management. However, leadership is one such type of approach that is important for the leader or the people in charge to follow them and bring humongous success to the organization (Habicher et al. 2022).
Fig.1: Democratic/Participative Leadership
(Source: Bakker, 2022)
Additionally, the definition that is made above makes it clear that the concerning leadership module not only demands the involvement of leader rather for running a company the combined participation of both the employees and the leader are inevitable, but the same also applies with the “Instil”. The management of the concerning company must follow all the prospects of the “Democratic Leadership” as this approach has been proven to be of great by the finding of some distinguished scholars, for the well being of the company (Bakker, 2022). Further, the religious application and adaptation of the democratic approach will lead the employment engagement o the company to a higher level which irrefutably is conducive for the “Instil” to bear positive results in t6erms of profitability. In addition to that the concerning leadership enhances the opportunity of employee engagement for a company and it also encourages the inputs for the same. and these two things are very crucial for any organization to for improving and enhancing the performance, confidence among the employees. If the employee engagement will be appreciated by the organization they will instinctively be motivated to work confidently if they find that their values ideas and decisions are respected by the business organization. Moreover, this leadership approach helps immensely to strengthen the engagement of the employees provided that if they are not victimized with the inferiority complex and give the space for the autonomy and liberty and permission of placing their ideas in terms of the smooth going of the company. Harmony among individuals makes the environment positive which helps them to work together at ease and come up with new and prolific ideas every time (Fuglsang, and Hansen, 2022). Therefore teamwork contributes large success to the organization by delivering the expected business results.
“Democratic leadership” makes sure that all the employees of the organization are heard because they can freely state their opinions, and give inputs for significant decisions that affect them. This gives their work significance and independence, which also lead to the elevated improvement of employment engagement (Khan and Ghayas, 2022). Moreover, an independent organization can develop a culture of employee engagement, dedication, and work fulfilment. However, the “Democratic leadership” approach also leads to an intense foundation of relations distinctively between the leader and their employees and this is only possible through strong and unbreakable respect and trust. Hence, it can be inferred that the implementation of the democratic leadership style would certainly yield positive results for Instil to deal with the issue of employee engagement while working with virtual teams.
3.2 The analysis of the second chosen area
Among the three leadership theories outlined previously, transformational leadership may be the best appropriate for Instil to address the issues connected with unprecedented change. This is because transformational leaders are the ultimate change champions. When it comes to achieving business greatness, they are visionaries who inspire and encourage their people (BenÍtez et al., 2020). In the eyes of transformational leaders, team building and the creation of a collaborative climate are more important than day-to-day organisational duties/tasks in achieving a better level of performance. The focus is on fostering a work environment where people are encouraged to take responsibility for their own development and the success of the company as a whole, rather than focusing just on their own career advancement. The following are the primary functions of Transformational Leaders:
- Developing a Vision: They are responsible for inspiring and motivating employees to strive for work excellence by establishing a clear vision and successfully communicating it throughout the organisation.
- Providing Examples or Serving as a Model: Transformational leaders inspire their followers by modelling or exemplifying desired behaviour or a code of conduct.
- Setting benchmarks: Well-defined standards and norms aid employees in adopting a desirable pattern of behaviour and collaborating to accomplish common goals.
- Culture and Climate Development: The primary functions of Transformational Leaders are to create an enabling atmosphere and a culture of mutuality, interdependence, and flexibility. Supportive company culture can drive individuals to perform at a high level and exceed expectations at work by accomplishing new milestones.
- Communication and Liaison: In order to gain resources, technical assistance, and information about leading organisations’ best business practises, transformational leaders serve as the primary point of contact for connecting with important stakeholders. This job entails primarily the development of relationships with stakeholders or commercial partners.
- Synergy: One of the most important responsibilities of leaders who use a transformational leadership approach is to foster an atmosphere of inspiration and cooperation in the workplace.
- Recruiting & Development of Talent: This is the transformative leader’s primary role, as it entails identifying the greatest of the workforce and cultivating them with proper training and development support.
(Sources: de Figueiredo et al., 2021; Hu et al., 2021; Franic and Dodig-Curkovic, 2020)
Fig.2: Transformational Leadership
(Source: Demir and Budur, 2019)
There are several advantages which Instil would benefit if its leaders employ the theory of transformational leadership, which are as follows:
- The transformative leadership style stimulates innovation and creativity in the workplace by creating a passionate and challenging work environment. There are several opportunities for growth and accomplishment for those under this sort of leadership.
- Leaders who transform their organisations are visionaries who are skilled communicators. To address problems more quickly, these leaders are better equipped to see the bigger picture.
- Workplace excellence is promoted when team members work together to achieve a common goal or vision under the guidance or inspiration of their bosses.
- Organizations are better prepared for any sort of change process because of transformational leadership’s ability to build mentor-follower relationships between leaders and followers.
- As a result of their transformational leadership, followers are able to rise above pre-established expectations and frameworks, and the organisation as a whole is better off for it.
- Clearly, good team performance and increased productivity and growth are both assured by transformational leadership.
(Sources: Kotamena, Senjaya and Prasetya, 2020; Sihite, Andika and Prasetya, 2020; Andriani, Kesumawati and Kristiawan, 2018)
- Conclusion and Recommendations
The preceding sections of this report have discussed in detail two areas, namely- the issues faced by the lead unit of the chosen company Instil in dealing with virtual teams and unprecedented changes. As a part of this discussion, three effective solutions (leadership theories) have been suggested as ways of handling each issue effectively. Out of the suggestions, it has been observed that in the case of the first issue, the theory of democratic leadership is most likely to produce the best results for Instil, whereas, in the case of the second issue, the transformational leadership theory is supposed to be the most appropriate choice. Substantial justification has been provided in the later sections of the report, to prove that the recommended solutions would be the most effective means for Instil in the process of addressing the two mentioned issues, and enhancing its overall organizational performance big time.
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