Developing leadership and Global Recession Essay

Developing leadership and Global Recession - Essay ExampleHowever, countries which are wealthy were able to cope with recession to an extent. According to AusAID(2010)Thosewith stronger economies and more fiscal resourceswere able to implement effective policy responses to support the economy and weathered the global recession relatively well. In combating a worldwide threat like global recession, an organization needs to make visible diverges in their leadership styles and business strategies. The issue of global recession pauperisms a leader to change his attitude in conducting business in order to be flexible and realistic. Global recession is a serious issue and threatens the financial structure of a company and its profitability. As per Sawan(2008) A recession norm whollyy takes place when consumers lose confidence in the growth of the economy and spend less . In much(prenominal) a condition the objectives and aim of a business needs to be revised and reconsidered according t o the demands of the situation. Implication of Leadership on Global Recession a) ascendant Leadership This is a leadership style in which the whole decision making process of the business is vested with a single individual. Here the whole assemblage members in an organization are monitored by the autocrat leader. In the event of global recession, the leaders should make effort to increase the confidence of share holders on with motivating staff to achieve maximum profit returns. An autocratic leader has more visionary skills and can implement strategies with less time and effort as consultation with other employees are non required. As an autonomous authority, he can analyze the prospects of the product market and make alternative choices to increase the demand for the product. As per Kiselev(2007)An autocratic leader likes to make decisions himself. This leader relies on personal experience and input he has sought, not the voluntary contributions of others. This kind of leaders hip is not viable with global recession concept as co-operation and co ordination wit all employees can solely achieve long term conquest for business. b) Democratic Leadership A democratic leader is one who considers everyones opinion and solution on a specific problem before taking a decision. In this kind of leadership, the leader conducts meeting with group members and discuss the complexities of the business in the event of economical downturn. The conclusions are drawn considering the suggestion of all mangers and experts in the organization. During a recession period, most of the organization cut off employees in order to reduce cost, so a declarative leader essential plan with organizational heads to retain experienced and skilled employees and disown employees who are less productive. According to Hansen(2011,pg.268) Democratic style displays the leadership strength of the leader and usually generates respect from the team member c) Laissez faire Leadership In laissez faire leadership, the decision making power is least vested with a particular individual. The decision making authority is distributed among different employees of the organization and they have strong hold on the business activity of an organization. In times of recession, it will be valuable if many employees have emancipation to exercise their power to take action on relevant areas of an organization. In recession period, the organization has to take instant decisions to