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Development as a Strategic Manager: Leadership and Management in 21st Century

Introduction

The function of a manager with strategy has changed to include a broad range of duties in the 21st century’s dynamic environment. This assignment explores the nuances of developing as a strategic manager by delving into the actual case study of ABC Incorporation, a marketing service company. We are seeking to unearth lessons that are relevant for today’s managers who are confronting the hurdles of a VUCA world through an analysis of management techniques, diversity and inclusion policies, new-generation leadership abilities, and the impact of the corporate culture. The scenario for ABC Corporation exhibits an intriguing fusion of organizational traits, allowing us to investigate different aspects of strategic management.

Types of Leadership

As a result of the complex issues and quick changes pushed on by globalization, advances in technology, and changing social mores, leadership is changing in the twenty-first century. We may divide the different types of leadership into four main groups to better understand their characteristics and their applicability in the twenty-first century: authoritarian, democratic, coaching, and strategic leadership. Every classification has an individual combination of traits, benefits, and disadvantages as well, and the applicability of all of them changes according to the situation and the objectives of the organization.

Making decisions on their own and stringent obedience are attributes of authoritarian leaders (Hunt & Fitzgerald, 2018). They usually provide straightforward directions and use top-down leadership. This style of leadership is still applicable in the twenty-first century because it works well in circumstances that call for quick decisions, such as crises or military operations. However, with the change to more egalitarian and collaborative leadership styles, it is losing relevance in the twenty-first century. Authoritarian leadership possesses the potential to restrict individual and team growth throughout the knowledge-based business environment of today.

Decision-making autonomy and stringent obedience are characteristics associated with authoritarian leaders (Hunt & Fitzgerald, 2018). They frequently provide straightforward directions and use top-down leadership. The aforementioned kind of leadership is still applicable in the twenty-first century because it works well in circumstances that call for quick decisions, such as emergencies or military operations. However, with a shift to more egalitarian and collaborative leadership styles, it has diminished relevance in the twenty-first century. Authoritarian management possesses the potential to restrict individual and team advancement in the knowledge-based business environment of today.

The goal of coaching leaders is to help team members enhance their skills and talents (Berg & Karlsen, 2016). They offer recommendations, support, and criticism to aid individuals in realizing their maximum potential. In the twenty-first century, coaching leadership is essential, particularly in knowledge-based and service-oriented sectors. It supports the rising focus on ongoing learning and growth. Leaders who can coach and upskill their staff encourage an environment of growth and adaptation in a time of fast technological development.

Strategic Leadership

Strategic leaders concentrate on establishing specific corporate goals and plans and have an eye toward the future (Jaleha & Machuki, 2018). They perform data analysis, foresee patterns, and reach conclusions that are by the goals of the organization. The dynamic and uncertain corporate environment of the 21st century makes strategic leadership very important. It is crucial to have leaders who can handle uncertainty, spot opportunities, and modify their tactics. The aforementioned strategy places a focus on flexibility, creativity, and the capacity to change course in response to shifting market conditions. Depending on the current situation and the objectives of the business, effective leadership in the twenty-first century frequently necessitates a combination of these approaches (Jaleha & Machuki, 2018). To encourage interaction among a diverse team, for instance, a leader may need to use democratic supervision, but the change to a more authoritarian approach during a crisis to make swift decisions.

Additionally, a leader’s fundamental strategy for developing a high-performing and flexible team can be based on the fundamental principles of coaching and strategic leadership. In general, flexibility and reactivity to changing circumstances are characteristics of 21st-century leadership. Whilst each form of leadership has pros and cons, the most successful ones today frequently display a flexible and situational leadership style that blends democratically elected coaching, and strategic leadership while avoiding using authoritative approaches as extensively as possible.

Methods of Evaluation That Affect Managerial Decisions

There are numerous strategies of evaluation that had an impact on management choices and the entire situation in the instance of ABC Incorporation and the employment and subsequent termination of Joyce Lee. Performance evaluation, meeting and communication processes, corporate culture assessment, skill assessment growth acknowledgement and positive reinforcement, and at some point the exit interview and departure of staff members represent a number of the evaluation techniques mentioned above (Pathiranage et al., 2020). The agency’s assessment of Joyce’s success was based on her marketing strategy, which was first commended by her manager, John Davis. John Davis’s commendation and good comments about Joyce’s performance had an impact on how she was perceived by the management. The organization’s choice to give her work its stamp of approval was impacted by this appraisal.

The second method of evaluation that affects managerial decisions is communication and meeting practices (Pathiranage et. al., 2020). In the case of ABC Corporation, the staff members attended frequent meetings with John Davis, but these meetings were primarily focused on exploring interpersonal problems rather than addressing work-related issues. The influence on the managerial decisions follows that there was lack of a structured agenda and a focus on interpersonal problems in meetings affected the agency’s decision-making process. It diverted attention from critical work-related discussions and problem-solving.

Organizational Culture Assessment also affects managerial decisions whereby the prevailing ideology at ABC Inc. emphasized a freedom system and a family-like atmosphere, where the focus was on job satisfaction and a sense of belonging (Thokozani &Maseko, 2017). The agency’s organizational culture influenced the decision to prioritize job satisfaction and interpersonal relationships over performance and client-related skills. This had consequences for how success on the job was defined. The company also hired inexperienced employees who lacked the skills needed for effective job performance. The agency’s decision to hire inexperienced staff and define success based on interpersonal skills rather than client-related skills influenced the quality of work and ultimately contributed to the failure of the program implemented by Joyce.

Recognition and Positive Reinforcement affects managerial decisions whereby when the leadership acknowledges efforts, the employees are motivated to do more (,). Despite the program’s failure, the agency members responded by praising Joyce and telling her she was doing a great job. The agency’s practice of providing positive feedback and reinforcement without addressing the program’s shortcomings influenced Joyce’s perception of her performance and potentially contributed to her frustration. The exit interview and employee departure follows that a company should carry out an interview with the given employee to establish areas that need improvement and uphold positive initiatives. Joyce left the agency due to frustration and anger. Joyce’s departure prompted a reevaluation of the agency’s methods and decisions. It highlighted the need to assess and address the issues that led to her dissatisfaction and departure.

Case Analysis

John Davis, the Head of Department at ABC Incorporation, exhibits a leadership style characterized by participative decision-making and an informal organizational structure. This leadership style matches with a democratic leadership approach where choices are made jointly and shared accountability and employee participation are strongly emphasized. The business’s prevalent ideology favours autonomy as well as independence, which helps the employees feel pleased in their position of employment. Participatory decision-making, confidence in the freedom system, candid discourse and the study of interpersonal challenges, inclusion and acceptance, and a focus on interpersonal skills are some of the distinctive characteristics of democratic leadership.

The agency had a decentralized, informal organizational framework that encouraged wide participation in decision-making. The fundamental characteristic of democratic leadership is this. It is recommended for staff members to have an active role in decision-making since this fosters open dialogue, teamwork, and idea sharing. In this particular situation, John Davis, the Department Head, conducted numerous meetings with employees where talks were held. It indicates that employees have the opportunity to voice their thoughts and participate in conversations regarding making decisionsLeadership at ABC Corporation also utilized a freedom system. The organization’s ideology highlighted the value of a flexible hierarchical framework over an inflexible one. This philosophy supports democratic leadership ideals that encourage the autonomy and inclusion of team members. Democratic administrators encourage their staff to take ownership of their jobs and trust them to make decisions. The emphasis on a freedom system in this situation shows that the employees had a significant impact on the way they carried out their duties and interacted with other individuals.

The company promoted open communication and exploration on interpersonal challenges. The fact that the group spent most of their meeting time exploring interpersonal problems indicates a commitment to open communication and problem-solving. In a democratic leadership environment, team members are encouraged to discuss issues openly, share their concerns, and work together to find solutions. While the lack of agendas and meeting minutes might suggest a lack of structure, it can also be seen as an attempt to maintain an open and informal atmosphere where employees feel free to express themselves. ABC Corporation promoted inclusivity and acceptance following the agency’s ability to provide a sense of belonging and acceptance to its young, recent college graduate employees reflects a democratic leadership approach. Democratic leaders value diversity and inclusivity, and they strive to create an environment where all team members feel respected and valued. In this case, the agency acted as a surrogate family, fostering a sense of community and belonging among its staff.

As a characteristic of democratic leadership, the company displayed an emphasis on relational skills. While not a direct application of democratic leadership, the organization’s focus on employees’ ability to relate well to others at work rather than just their technical skills aligns with the democratic leadership principle of valuing collaboration and teamwork. Democratic leaders prioritize building strong interpersonal relationships among team members.

Situational Leadership at ABC Incorporation

Situational Leadership, developed by Paul Hersey and Ken Blanchard, posits that leadership effectiveness depends on matching the leadership style to the readiness or maturity of the followers. It suggests that leaders should adapt their leadership style based on the specific situation and the development level of their team members. John Davis’s democratic leadership style aligns well with the Situational Leadership framework David’s leadership through telling (S1), selling (S2), participating (S3) and delegating (S4). In situations where employees are new to their roles or tasks, John may need to adopt a more directive approach. For example, when onboarding new team members or when a critical project requires clear instructions, he might temporarily shift towards a telling style.

As employees gain experience and skills, John can transition to a selling style. This involves explaining the why and how of decisions, seeking input, and providing support. When there’s a need to persuade or motivate employees to embrace new initiatives or changes, this style can be effective. When employees become more competent and self-reliant, John can adopt a participating style. This involves collaborating with the team, seeking their input in decision-making, and empowering them to take ownership of their tasks. This approach is suitable when dealing with experienced team members who benefit from autonomy. In situations where employees are highly skilled and motivated, John can delegate tasks and decisions, trusting them to work independently. This is particularly useful when the team is composed of experts who require minimal supervision.

Examples of Business Leaders Who Adopted Situational Leadership:

There are several leaders who have utilized the situational leadership and succeeded including Steve Jobs, Elon Musk and Indra Nooyi. Steve Jobs, co-founder of Apple Inc., was known for his adaptive leadership style. While he could be highly directive and demanding in product development (telling style), he also encouraged innovation and collaboration among his teams (participating and delegating styles). Elon Musk is another example of a leader who adjusts his leadership style based on the situation. He is hands-on and directive in technical aspects of his companies but also fosters a culture of innovation and encourages employees to take ownership (selling and participating styles).

Indra Nooyi practiced situational leadership during her tenure as CEO of PepsiCo. She recognized the need for different approaches when dealing with diverse global markets and teams. She combined elements of telling, selling, and participating styles to drive the company’s growth. Incorporating Situational Leadership into their leadership toolbox allowed these business leaders to adapt to changing circumstances and effectively lead their organizations. Similarly, John Davis’s ability to adjust his leadership style based on the readiness and maturity of his team members can contribute to the success of ABC Incorporation in the dynamic 21st-century business environment.

1.2 Advantages and Disadvantages of John Davis’s Leadership Styles

John Davis’s democratic leadership style comes with its own set of advantages and disadvantages. One advantage is the aspect of employee engagement where John’s democratic leadership style encourages active participation and open communication among team members. This can enhance employee engagement and foster a sense of ownership in decision-making processes. It also promotes inclusivity and diversity of thought, which can lead to innovative solutions. In a creative industry like marketing, this can be a significant advantage. This approach also promoted job satisfaction among employees because the participative approach aligns with the desires of the millennial workforce for more autonomy and involvement in decision-making, potentially resulting in higher job satisfaction.

Some of the drawbacks of the democratic leadership style include decision making delays, potential for conflicts and skill development neglect. The emphasis on consensus-building and participation can lead to slower decision-making, which might not be suitable in situations requiring quick actions, like responding to emergencies or market changes. Frequent open discussions about interpersonal problems could, paradoxically, lead to more conflicts within the team if not managed effectively. The focus on interpersonal skills over technical competence could result in employees lacking the skills needed for effective client interactions and project delivery, as seen in Joyce’s case.

Situational Leadership also has its advantages as well as disadvantages. Some of these advantages include adaptability, skill development and motivation. In light of adaptability, situational leadership, when applied correctly, allows leaders to adapt their approach to the readiness and maturity of their team members, making it highly flexible and responsive to varying circumstances. Secondly, situational leadership provides an opportunity for individualized mentorship and skill development, which can benefit less experienced team members. Finally, this leadership style generates motivation for workers. The ability to tailor leadership to individual needs can enhance motivation and job satisfaction.

Situational leadership also has its drawbacks, for instance, it has an aspect of complexity. Implementing situational leadership can be complex and time-consuming. Leaders must constantly assess the readiness of team members and adjust their leadership style accordingly. There’s a risk of team members perceiving favoritism or bias when leaders form in-groups and out-groups, potentially leading to resentment and demotivation among some employees (Kossek, Lobel & Brown, 2006). Moving team members between leadership styles including telling, selling, participating, delegating can be challenging and requires careful management to avoid confusion and resistance.

HR Best Practices On Managing Diverse Team Members

In the case of ABC corporation, there are several HR best practices that could have been implemented to better manage diverse team members, improve talent retention, and maintain team spirit. Some of these HR best practices include diversity and inclusion training, clear communication and expectations, performance management, mentorship and training program, feedback and recognition, employee resource groups (ERGs), regular performance reviews and exit interviews. In the case of ABC Incorporation, diversity and inclusion (D&I) training could have been provided to employees, especially to John Davis, the Head of the Department. By understanding cultural differences and fostering an inclusive environment, the agency could have improved teamwork and employee satisfaction (Poppas et. al., 2020). A prime example of this is Microsoft, which has a robust D&I program. They provide mandatory D&I training to all employees, ensuring a more inclusive work culture.

To address the issue of unproductive meetings, the agency could have set clear communication norms, established meeting agendas, and encouraged focused discussions. Google is a company known for its efficient meeting culture, with clear agendas and timeframes, which would be an excellent model for ABC Incorporation to follow (). ABC Inc. could have shifted its performance evaluation criteria to focus on job-related skills rather than just interpersonal skills. Sales force, for instance, emphasizes objective performance metrics for all employees, irrespective of their background, fostering fair evaluations (). Implementing mentorship and training programs could have helped bridge the skills gap among inexperienced employees. IBM is known for its extensive training and development initiatives, which could have been adapted to ABC Inc.’s needs.

Instead of generic praise, ABC Inc. could have promoted constructive feedback and specific recognition for accomplishments. Facebook is recognized for its peer-to-peer recognition system, which fosters a culture of feedback and appreciation. Establishing ERGs would provide a sense of belonging for employees, especially non-local staff. Apple’s ERGs, such as their Women@Apple network, have been successful in creating a supportive atmosphere for diverse employees. Consistent and objective performance reviews, like those at Amazon, ensure that employees are evaluated fairly and given opportunities to improve their skills. By conducting exit interviews, ABC Inc. could have gathered insights into the reasons behind Joyce’s departure and identified areas for HR improvement. Airbnb is known for its thorough exit interviews, which have led to constructive changes in their HR practices.

Theories

There are several leadership theories that align with the case of ABC Incorporation that can sustain the team spirit including Maslow’s hierarchy of needs, the two-factor theory, situational leadership theory and the Leadership-Member Exchange (LMX) Theory.

Maslow’s Hierarchy of Needs

According to this theory, individuals are motivated by a hierarchy of needs, including physiological, safety, social, esteem, and self-actualization needs (Trivedi & Mehta, 2019). The informal organization and emphasis on a surrogate family-like environment might address the social and esteem needs of the employees. However, the lack of necessary skills and the mismatch between success criteria and job requirements might hinder the fulfillment of higher-level needs. To cover the aspect of physiological needs, in the case of ABC Incorporation, salaries were mentioned as being up to the mid-market level. While this suggests that basic financial needs were met to some extent, it doesn’t provide detailed information on whether employees were entirely satisfied with their compensation. If employees had concerns about their salaries, it could impact their physiological well-being and motivation.

Secondly, safety needs follow that the ABC Incorporation had an informal organization with little hierarchical structure (Trivedi & Mehta, 2019). The absence of a clear hierarchy and formal meeting structures could create a sense of insecurity and uncertainty among employees about their roles and job security. This lack of structure might have made it difficult for employees to know where they stood within the organization. The third aspect is belongingness and love needs where many of the employees, especially the young ones and non-local staff, sought a place to belong and feel accepted. The organization acted as a surrogate family for many employees. This implies that the company was successful in fulfilling the social and belongingness needs of its employees.

In terms of esteem needs, the employees at ABC Inc. were described as bright, enthusiastic, creative, and motivated, the organization seemed to prioritize their ability to relate well to others at work over their ability to work with clients effectively (Trivedi & Mehta, 2019). This emphasis on interpersonal relationships rather than job performance might have impacted employees’ self-esteem, as they may not have felt valued for their skills and contributions. For self actualization, the organization’s culture emphasized interpersonal relationships and participative decision-making but lacked a clear structure for skill development and professional growth. This could have hindered employees’ self-actualization by not providing them with opportunities to reach their full potential within the company.

In this case study, it appears that ABC Incorporation was successful in meeting some of the belongingness and love needs of its employees but fell short in addressing safety needs due to its informal structure and in fulfilling esteem needs by prioritizing interpersonal relationships over job performance. This imbalance might have contributed to Joyce’s frustration and decision to leave the organization.

Herzberg’s Two-Factor Theory (Hygiene-Motivation Theory)

This theory proposes that there are hygiene factors (such as work conditions, salary, job security) that, when lacking, can lead to dissatisfaction, and there are motivators (such as recognition, achievement, responsibility) that contribute to job satisfaction (Alshmemri, Shahwan-& Maude, 2017.). In this case, the informal structure, participative decision-making, and recognition by patting on the back might serve as motivators, but the lack of necessary skills and ineffective program outcomes could contribute to dissatisfaction. The Two-Factor Theory, developed by Frederick Herzberg, is a motivational theory that helps explain job satisfaction and dissatisfaction based on two categories of factors: hygiene factors (also called maintenance factors) and motivators (also known as satisfiers or intrinsic factors). The Two-Factor Theory applies to the case of Joyce Lee at ABC Incorporation in several ways.

Hygiene factors otherwise called dissatisfiers are factors that, if lacking or inadequate, can lead to job dissatisfaction but, when sufficient, do not necessarily lead to job satisfaction (Alshmemri, Shahwan-& Maude, 2017). In this case study, several hygiene factors are evident including salary concerns, working conditions, job security and the company culture. The case mentions that salaries at ABC Inc. were only up to the mid-market, which suggests that compensation might not have been competitive. Low salaries can be a significant hygiene factor, as they can lead to dissatisfaction if they are perceived as insufficient. Although not explicitly mentioned, the lack of clear agendas for meetings and the excessive focus on interpersonal problems during meetings can be seen as an issue related to working conditions. This lack of structure and productivity in meetings can be a source of frustration and dissatisfaction for employees.

The absence of clear structure and accountability in decision-making meetings could lead to frustration (Alshmemri, Shahwan-& Maude, 2017). Motivators are factors that, when present, can lead to job satisfaction and motivation. Initially, Joyce received praise and recognition from her manager, John Davis, for her marketing plan. However, this positive feedback turned out to be superficial, as the program she implemented was not successful. Lack of genuine recognition and achievement can lead to frustration and demotivation. Another aspect includes the work itself where the case suggests that employees were enthusiastic and creative but lacked the skills needed for effective performance (Alshmemri, Shahwan-& Maude, 2017). In this context, the emphasis on interpersonal skills rather than job-related skills might have been a misalignment with what could have motivated employees – the opportunity to excel at their work and develop professionally.

In this case, it appears that Joyce initially experienced motivators (recognition) but later became dissatisfied due to hygiene factors (lack of accountability and job effectiveness). The agency’s culture, although well-intentioned, might have led to complacency and superficial praise, ultimately resulting in Joyce’s frustration and departure.

Leadership-Member Exchange (LMX) Theory

Leadership-Member Exchange (LMX) Theory is a leadership theory that focuses on the quality of the relationship between a leader and their individual team members (Farzaneh Hassanzadeh, 2014). It suggests that leaders form unique and different relationships with each of their followers based on the interactions, exchanges, and interpersonal dynamics. LMX theory contends that these leader-member exchanges can significantly influence individual and group outcomes within an organization.

In the case of ABC Corporation, John Davis, the Head of Department, exhibits a leadership style characterized by participative decision-making and an informal organizational structure. This style aligns well with the principles of LMX theory whereby in terms of in –group and out-group and out-group, within ABC Corporation, John likely forms in-groups and out-groups among his team members (Kossek, Lobel & Brown, 2006). Those who actively participate in decision-making, contribute innovative ideas, and build a strong rapport with John would likely be part of the in-group. They may enjoy more autonomy and opportunities to shape the department’s direction.

In ABC Corporation, In-group members are likely to receive more prominent roles within projects, gain access to additional resources, and experience a higher level of job satisfaction due to their closer relationship with John. They may also benefit from John’s mentorship and support, helping them advance in their careers. LMX theory has a leadership follower dynamic where it suggests that leader-follower relationships are not static (Farzaneh Hassanzadeh, 2014). Over time, as employees prove their competence, dedication, and commitment to the department’s goals, they may transition from the out-group to the in-group. This dynamic process aligns with the flexible and adaptive leadership style described in the case study.

A leader who used the LMX principles is frequently recognized as Jack Welch, the former CEO of General Electric (GE) (Fernández-Aráoz, 2021). He encouraged his upper management to form solid, one-on-one bonds with their staff members, which helped GE succeed throughout his leadership. The renowned investor and CEO of Berkshire Hathaway, Warren Buffett, is renowned for his leadership style that focuses on long-term relationships and trust. He forms strong connections with the CEOs of the firms Berkshire Hathaway invests in, giving them a lot of freedom to manage their operations. The CEO of General Motors (GM), Mary Barra, has also underlined the important role of transparent and cooperative relationships inside the organization. She has worked to foster a culture of trust and teamwork, which has contributed to GM’s resurgence in the automotive industry.

Task 2: Diversity and Inclusion Policies and HR Practices

The workforce of the twenty-first century is diverse, comprising of individuals who come from different cultural, racial, and demographic origins. Diversity acceptance, as well as promotion, development are no longer only moral obligations; additionally they have a tactical benefit. A wide spectrum of viewpoints, experiences, and ideas are brought to the table by the new older workforce, which fosters creativity and promotes problem-solving skills (Hunt, Layton & Prince, 2015). Furthermore, fostering an inclusive workplace helps that each worker feel appreciated, which boosts job satisfaction and increases retention rates. John’s business should implement a thorough set of HR practices and diversity and inclusion policies in order to effectively oversee a diverse crew efficiently. First and foremost, the hiring procedure ought to concentrate on luring a broad pool of candidates by using objective job descriptions, inclusive language, and focused outreach. Additionally, training courses must topics such as unconscious prejudice, cultural sensitivity, and successful cross-cultural communication. Thirdly, for the purpose of avoiding partiality, promotion and advancement possibilities should be based on merit.

Affinity groups, mentorship programs, and consistent feedback methods can all help foster an inclusive work atmosphere (Hunt, Layton, & Prince, 2015). Inclusivity may be strengthened even further by acknowledging and appreciating different cultural events. John’s firm can make certain that its diverse personnel thrive in a peaceful and supportive environment by coming up with and putting these rules into place.

Task 3: New Age Leadership and Management Skills

The business landscape of the 21st century is marked by volatility, uncertainty, complexity, and ambiguity (VUCA) (Rimita, 2019). This environment presents unique challenges that require a shift in leadership and management approaches. In a VUCA world, traditional methods of decision-making and problem-solving fall short. Organizations must adopt a proactive stance to anticipate and adapt to rapid changes in the market, technology, and consumer behavior. To navigate the VUCA world effectively, leaders like John Davis need to possess a new set of skills.

Adaptability stands out as a crucial trait, as leaders must be open to change and quick to pivot strategies (Rimita, 2019). Resilience enables them to weather uncertainties and setbacks while maintaining their team’s morale. Strategic thinking becomes paramount to identify opportunities amid challenges and align actions with long-term goals. Moreover, effective communication is essential to convey a clear vision, manage expectations, and keep the team motivated. Collaboration and cross-functional understanding facilitate creative problem-solving in complex situations. Digital literacy allows leaders to harness technology for informed decision-making and innovation. These skills collectively empower leaders to steer their teams through the uncharted waters of the VUCA world.

Task 4: Organizational Culture and Its Impact

The Role of Organizational Culture is vital as it serves as the invisible foundation that shapes employee behaviors, attitudes, and interactions (Thokozani & Maseko, 2017). In the case of ABC Incorporation, the informal and familial culture played a significant role in fostering interpersonal relationships and a sense of belonging. This culture can influence how employees approach their work, their peers, and the organization as a whole. Organizational Culture plays a critical role as it has an impact on Team spirits and work effectiveness: The informal organizational culture at ABC Incorporation had both positive and negative impacts on team spirit and work effectiveness (Thokozani & Maseko, 2017).. On the positive side, the familial atmosphere created a strong sense of camaraderie, contributing to high levels of job satisfaction and employee retention. The focus on interpersonal skills also led to improved teamwork and communication.

However, this culture had drawbacks. The lack of a structured hierarchical system sometimes resulted in unclear roles and responsibilities, causing confusion. The overemphasis on interpersonal skills over technical competence might have hindered performance when dealing with clients or delivering projects. As the case of Joyce illustrates, when there’s a lack of clear performance metrics, employees might not receive accurate feedback on their work, leading to frustration and attrition.

Conclusion

In conclusion, the evolution of the 21st-century business landscape requires strategic managers to adopt multifaceted approaches to leadership, diversity management, skills development, and organizational culture. Through the lens of ABC Incorporation’s case study, we’ve explored the advantages and disadvantages of democratic leadership, the significance of diversity and inclusion, the skills necessary for a VUCA world, and the intricate relationship between organizational culture and work effectiveness. Embracing these insights equips managers to navigate the complexities of modern business environments and steer their organizations towards sustained success.

References

Alshmemri, M., Shahwan-Akl, L. and Maude, P., 2017. Herzberg’s two-factor theory. Life Science Journal14(5), pp.12-16.

Berg, M.E. and Karlsen, J.T., 2016. A study of coaching leadership style practice in projects. Management Research Review39(9), pp.1122-1142.

Fernández-Aráoz, C. (2021) Jack Welch’s approach to leadershipHarvard Business Review. Available at: https://hbr.org/2020/03/jack-welchs-approach-to-leadership (Accessed: 25 August 2023).

Hunt, V., Layton, D., & Prince, S. (2015). Diversity matters. McKinsey & Company1(1), 15-29.

Hunt, J. and Fitzgerald, M., 2018. Styles of leadership. Leadership: Global and regional perspectives, pp.62-98.

Jaleha, A.A. and Machuki, V.N., 2018. Strategic leadership and organizational performance: A critical review of literature. European Scientific Journal14(35), pp.124-149.

Kossek, E.E., Lobel, S.A. and Brown, J., 2006. Human resource strategies to manage workforce diversity. Handbook of workplace diversity, pp.53-74.

Pathiranage, Y.L., Jayatilake, L.V. and Abeysekera, R., 2020. A Literature Review on Organizational Culture towards Corporate Performance. International Journal of Management, Accounting & Economics7(9).

Poppas, A., Albert, M.A., Douglas, P.S. and Capers IV, Q., 2020. Diversity and inclusion: central to ACC’s mission, vision, and values. Journal of the American College of Cardiology76(12), pp.1494-1497.

Thokozani, S.B.M. and Maseko, B., 2017. Strong vs. weak organizational culture: Assessing the impact on employee motivation. Arabian Journal of Business and Management Review7(1), pp.2-5.

 

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