LEADERSHIP STRATEGIES IN FINANCIAL CRISIS

Leadership Strategies in Financial Crisis

Table of Content

Introduction3

Purpose of the Research Proposal3

Literature Review3

Proposed Methodology5

Data Collection & Analysis6

References8

Leadership Strategies in Financial Crisis

Introduction

The main purpose of this research proposal is to discuss the leadership strategies in the light of the recent global financial crisis. Leadership is the ability that positively influences the other to achieve a worthy end, common and human. It is the art which can make people do the things you want to voluntarily without running the power and authority. It is the ability of every human being to steer or guide their peer group.

Purpose of the Research Proposal

The main purpose of this research proposal is that how the companies deal with the financial crisis and what leadership strategies they develop in the light of recent financial crisis.

Literature Review

Recently, the world is going through the severe financial crisis. This crisis clearly shows that markets, if left turned to the wild where the strong eat the weak, and this came up intellectual capital for a package of exotic and complex transactions had the effect of the fall and collapse (Avolio, 2007). Each and every individual are suffering from this crisis and trying to find the measures to deal with such crisis. Therefore, there is a great need for each and every company to search for the strategies in these financial crises. The companies adopt different strategies in terms of its different functions like business management, finance, human resource and leadership. Leadership is a very important function adopted by the companies in order to support its people. Leadership is the process of influencing people to achieve the desired goals. To be a good leader needs charisma, intelligence, persuasiveness, sensitivity, integrity, courage, fairness, be innovative, sympathy, brain and a lot of heart to lead a group of people and go their own will, motivate, stimulate and thus achieve the desired goals, and everyone is satisfied and have a sense of gain and loss (Dickson, 2003). The word leadership defines the process of influencing others and encourages them to work enthusiastically in a common goal.

The one common leadership strategy, which the companies follow in light with the current financial crises, is participative leadership strategy. Participative leadership fosters decision-making by a group. In this model, of leadership, the leader (the boss, the team leader ... etc) consult his team and asked their opinions to make decisions.

This leadership style encourages each group member to make its voice heard, to express its views and to participate (Beck, 2005). However, it is important to note that the final decision is only made by the Chief. This takes into account the views of the group, but that he always takes the final decision.

Participative leadership style is best suited for achieving the long-term goals of the organization. They say two minds are better than one. Therefore, if the decision is taken after the participation of many brilliant minds, the future strategy may be to fail the test. Hierarchical strategies provide a straightforward and widely accepted way of managing ...