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MBA

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Topic: The 21st Century Leadership

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Student Name: Fazlul Karim Chowdhury

LSM ID: 204495

University Student ID: 17418964

Northampton University

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Table of Contents
1.0 Introduction..........................................................................................................................4
2.0 What are the predicted key competencies for 21st century leaders?....................................4
2.1 Key competencies for 21st century leaders......................................................................4
2.1.1 Cognitive competences.............................................................................................5
2.1.2 Interpersonal competencies.......................................................................................5
2.1.3 Intrapersonal competencies.......................................................................................7
2.2 Theories which can be considered under the contemporary approaches of leadership. . .7
2.2.1 Attribution theory......................................................................................................7
2.2.2 Charismatic leadership..............................................................................................7
2.2.3 Transactional leadership............................................................................................8
2.2.4 Transformational leadership......................................................................................8
3.0 How are these similar or different to classical leadership capabilities?...............................8
Trait theory.............................................................................................................................8
Behavioural theories...............................................................................................................8
Contingency / Situational Theories........................................................................................9
4.0 What are the underlying causes of changes to leadership competencies?..........................11
Globalization........................................................................................................................11
Advancement in Technology................................................................................................11
Demographic Changes.........................................................................................................12
Increased Competition.........................................................................................................12
5.0 Compare, contrast, synthesise and critically analyse the academic research on this topic.
..................................................................................................................................................12
5.1 Definitions scholars debated on the topic......................................................................12
5.2 Key themes/theories.......................................................................................................13
5.3 Potential applications and implications..........................................................................15
5.0 Conclusion..........................................................................................................................16
Reference..................................................................................................................................17

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1.0 Introduction
Leadership is one of the key issues in the way of modern organizations' success in this 21st
century. According to Mullins (2015), leadership refers to the process which influence and
motivate the people in workplace towards achieving organizational goals and objectives.
Northouse (2013) defines the leadership as the process by which a leader can motivate and
influence a group of people to gain a particular goals. Jago (2012) said, leadership is a way
which direct the businesses in a way which makes the organizations more coherent as well as
cohesive. Leadership skills and knowledge are processed and influenced by leaders' traits and
attributes such as character, ethics, values and beliefs.

Several debates on leadership have been going on for decades, where many gurus have
observed that the basic practices and principle of leadership have not changed significantly
over the years (Rose, 2012). However, leadership is being more complex in the new dynamic
global economy and 21st century organizations (Drucker, 2011,Trilling and Fadel, 2009). The
leaders in present world must behave differently to gain knowledge and understanding for
thriving 21st century global economy. For example, leaders should be better listeners, team
players, relationship builders, skilled and experience to promote the followers in gaining their
agenda and enhance productivity in workplaces (Sadmann and Vandenberg, 2015). In
addition, leaders in 21st century organizations must be quick and effective decision, be able
to use emerging technologies and social media to co-ordinate and communicate action
effectively (Drucker, 2016; Trilling and Fadel, 2009). Further, the leaders in 21st century
should be aware of global politics and globalizations, be innovative in making decisions and
creating sense of urgency (Rose, 2012).

2.0 What are the predicted key competencies for 21st century
leaders?
2.1 Key competencies for 21st century leaders

The predicted key competencies for 21st century leaders can be classified into three broad
categories: cognitive competencies, interpersonal competencies, and intrapersonal
competencies (Mullins, 2014). A number of competencies can be identified under each of
these board categories, where the key competencies are discussed as below:

2.1.1 Cognitive competences

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Displays technical or professional expertise: According to Mullins (2014), good leaders
must have specific skills in different sectors such as designing software, accounting, and
selling. A good leader must develop professional and technical skills for leading his followers
and teams (McFarland, 2015). In addition, the leaders must gain knowledge on foreign
language, global issues including global economy and politics, technologies and
mathematics, building communication (Martin, 2016).
Critical Thinking: Critical thinking is an issue for 21st century business in making every
decision (Pearson, 2015). Thus, the leaders must be able in critical thinking including
evaluations, inferences and analyses. Leaders have to think how to continuously improve
process, services and communications to influence their followers (Mullins, 2014).
Creativity and innovation: Many organizations see the creativity and innovation as one of
the important 21st century leadership competency (McFarland, 2015). Creativity and
innovation are essential to gain business success in competitive economy. The world is
frequently changing. Thus, the creative and innovative thinking are essentials to adapt the
rapid changes in business operations (Martin, 2016).

2.1.2 Interpersonal competencies

Communication and Collaboration: The best leaders must develop communications and
collaboration among their followers and teams (McFarland, 2015). In building effective
communication, the leaders clarify, share, and balance information among the followers
(Martin, 2016). For building collaboration, the leaders focuses on decision making,
negotiation, problem solving, and conflict resolution. Effective communication and
collaboration are essential for taking new strategies and initiatives for businesses,
implementing business policies (Rose, 2012).
Global awareness: The 21st century leaders should have global awareness including social,
economic and cultural issues (Mullins, 2014). A leaders must demonstrate global awareness
when the leaders feels empathy for followers in different geopolitical and cultural
circumstance (Martins, 2016). Thus, it is suggested for the leaders to understand the world
and global issues, communicate ideas, weigh perspectives, and apply knowledge in global
and multicultural workforces (Pearson, 2015).

2.1.3 Intrapersonal competencies


Inspires and motivates others: The best leaders always create vision for the future success
which motivate the employees to gain that vision (Martins, 2016). The different vision and

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mission created by the effective leaders make the business difference in the competitive
marketplaces. This also impact on the communities and target and potential customers
(Mullins, 2014). Great leaders develop effective rewards, incentives, and performance
appraisals for the employees and motivate them for improved productivity and performance
(Pearson, 2015).
Learning how to learn
The leaders must have tendency to how to learn an issue, how to approach a task, monitor
individual comprehension, problem and evaluate progress (Mullins, 2014). The leaders must
have ability to predict attainment, achievement, and workforces success (Pearson, 2015). In
addition, the leaders should be able to respond to teacher feedback, self-motivate, and
develop stronger self-perceptions to business accomplishment (Martins, 2016).
Develops others: The best leaders should develop growth mind sets (Martins, 2016). Leaders
should continuously build and develop technical and professional expertise and should set
time and money in the budget to develop their followers workforces (Pearson, 2015). The
best leaders look for the promising employees. Thus, the leaders provide effective training
and development program to develop them (Mullins, 2014).
2.2 Theories which can be considered under the contemporary approaches of leadership

2.2.1 Attribution theory


This theory explains the causal explanation of leaders behavior and expected outcome, and its
impact on subsequent reactions (Martins, 2016). This theory suggest that leader behavior is
specified by both internal (such as ability, attitude, commitments, and skills) and external
(such environmental forces, economic, social) forces (Mullins, 2014).

2.2.2 Charismatic leadership


Charismatic leadership discloses a transcendent mission and required actions appealing
towards the followers, where the followers believe the leader is extra-ordinary knowledgeable
and skilled (Martins, 2016). However, there are particular situation and traits variables which
impact on the charismatic leadership styles (Mullins, 2014).

2.2.3 Transactional leadership

Transactional leader focuses on bureaucratic structure and legitimate authority, which is


based on mutual exchanges between leaders as well as followers. In this case, the leaders
provide rewards and incentives to the follower for their achievement to motivate them. This

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means this leadership style focuses on outcome, goals clarification, rewards and punishment
(Mullins, 2014).

2.2.4 Transformational leadership

Transformational leadership is appropriate when any major change is required for business
success (Martins, 2016). This leadership promotes high motivation and commitment towards
the followers to gain expected outcome (Mullins, 2014).

3.0 How are these similar or different to classical leadership


capabilities?
Trait theory

According to Navanhandi (2016), a modern approach should be developed to understand the


role of traits in leadership practices. Cawthon (2013) argues that many traits are pre-
conditions for effective leadership but they are not effective enough to make a great leader.
Trait theory of leadership focuses on the quality of great people. Then, it includes the effects
of situations on leadership and re-emphasizes the role of the best leaders traits (Northouse,
2014). The increased trend of transformational leadership defines particular traits for leaders
to lead organisations (Navanhandi, 2016). These traits also promote the leading businesses to
engage transformational techniques. However, the effectiveness of this engagement depends
on the beliefs that traits are valuable and effective in the business process.
Behavioural theories

According to Martins (2016), this theories focus on particular behaviours of leaders.


According to these theories, the best leaders the best predictor in influencing the followers
and determining the leadership success. Kotter (2012) said, this approach promotes real
marketing potentials where leaders have specific response to particular stimuli. Thus, it is
considered that leaders are born as Great Man Theory, which can be measured through
leadership potential (Trait Theory) and psychometrics measurements. Then, this theory points
out that anyone can make leader by teaching them most appropriate behavioural response for
particular situation. This theory classifies two group of behaviour which are strongly
correlated (Parsons, 2015). These are people oriented behaviour (consideration) and task
oriented leaders (imitating structure). The task oriented leaders focus on organisational
structure, staff motivation, and favour behaviours related to initiating, organising, clarifying,
and information gathering. On the other hand, the people oriented leaders focuses on

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behaviours which ensure people satisfaction, motivation. People oriented leaders also
emphasises on tasks and results and have behaviours related to encouraging, listening,
coaching and mentoring, and observing (Mullins, 2014).
Contingency / Situational Theories

According Drucker (2016), Contingency/Situational theory is one of the main theory, which
supports the business in choosing leaders for guiding the business success. This theory
suggests the leaders to work in flexible manner to diagnose the appropriate leadership style in
specific situation. This means situational leaderships attempts to describe leaderships in
larger situational contexts. Goleman (2012) said, there a number of theories developed
overtimes to explains situational theories, where Fiedler's Contingency Theory of Leadership,
House Path-Goal Theory, and Vroom and Tetton's Normative Theory are widely recognised.
According to Fiedler's Contingency Theory, leadership style is rely on personality which does
not change but the situation are changeable. Dominant personality traits are mix of people
and task oriented (Parsons, 2015). Thus, the success of leadership depends on the degree of
dominant personality traits used in particular situations. This theory believes people oriented
leaders are effective in middle ground situations, for example, in banking and retail. On the
other hand, task oriented leaders are effective in extreme situations, for example, in
manufacturing, mergers and acquisitions work. According to Martins (2016), House Path-
Goal Theory focuses rewards available (goal) and clarify the behaviour for the followers
which lead the reward (path). This theory offers four different leader behaviours: directive
leadership, supportive leadership, achievement-oriented leadership, and participative
leadership; and two situational variables that are subordinate characteristics and task
characteristics (Mullins, 2014). Then, Vroom and Tetton's Normative Theory focuses on how
decisions can be made in particular situation. This theory emphasises on five decision making
approaches from highly participative to highly autocratic, which method is appropriate is
depend on the situation (Parsons, 2015).

4.0 What are the underlying causes of changes to leadership


competencies?
Globalization

Mullins (2014) globalization has significant impact on leaderships practices in several ways
through increased opportunities, international employee transfer, competition and customer
and markets. Globalization also impacts on leaderships in the way of business operations

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which make difficult and complex leadership and business activities (McFarland, 2015). This
is because leadership styles vary from country to country. However, it is not essentials for a
good leader in a country should be good in other country, but the leaders must understand
culture, customs, social standards, ways and beliefs of the countries to provide beneficial and
effective leadership to businesses (Martins, 2016). In addition, successful leaders need
sensitivity to standards and cultural difference, awareness, courage, integrity in global
workplace (Drucker, 2016). The 21st century also creates some economic and social
uncertainties including religious extremists, turmoil, riots and social crisis (The Economist,
2012). In this age, knowledge and information come with extreme poverty, tremendous
challenges, pandemic AIDS, social violent, water shortage. In this globalization age,
transition and changes are considered as the biggest challenges faced by the businesses
(Martin, 2016).
Advancement in Technology

The 21st Century is facing dramatic technological revolutions after the industrial revolution.
Martin (2016) said this is the period of technological revolution which focuses on the way of
work, computers, communication, information, and multimedia technologies. Thus, the
leaders must have skills and competences in several technologies (such as computers,
information technology products and services) to function effectively in the business (Trilling
and Fadel, 2009). In addition, the use of internet, company website and email can be great
sources of information for the leaders to leader their followers. Thus, the leaders must have
proficiency and competencies on internet, web information, email, social media (like
Facebook) communication, mobile device (e.g Smartphone) uses to build up stronger
relationship with the followers and to engage them within the business for long times
(McFarland, 2015).
Demographic Changes

There has been dramatic changes in demographic and social structure. This is because
increased trend of population, economic and social volatility, income and expenditure level of
community people, global warming and environmental issues are rapidly changing the social
and demographic structure (Mullins, 2014). In addition, according to Drucker (2011), 21st
Century has profound economic and social changes which are creating new realities in the
activities of leaders in businesses. Thus, the leaders must have vast knowledge and
understanding on the demographic and social changes to be effective leaderships and improve
staffs motivation and productivity with increased business performance (McFarland, 2015).

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Increased Competition

The 21st Century Organizations are facing severe competitions from aggressive competitors.
The increased trend of new entrants, substitutes and existing competitors who are forcing the
business and giving hard time to gain sustainable competitive advantage (Trilling and Fadel,
2009). Therefore, the leaders must have acquire knowledge and understanding on all of the
potential new entrants, exiting competitors and substitutes to lead the business stakeholders
and gain better business performance (McFarland, 2015). The leaders must practice different
leadership styles in different situation to beat the competitors by effective decision making
and solving the complex problem. In the leaders should posses the competences and
capabilities suitable interventions to deal with the problems arise (Parsons, 2015).

5.0 Compare, contrast, synthesise and critically analyse the


academic research on this topic.
5.1 Definitions scholars debated on the topic

21st Century leaders mainly focuses on compassion and taking care of people. A good leader
can force his/her will and conviction into the forefront of other organizations (Deming,
2010). It is important to maintain leadership quality focusing on the deficiencies and product
features. For keeping the costs competitive, the leaders must have continuous process in
reducing process and product deficiencies (Juran, 2013). Leadership is mainly practiced
between a leader and a number of people who work as team/group. Kotter (2012) said, it is
essentials for a quality leader to have responsibility and accountability. In addition, a good
leader reward and recognize success, and proactive in dealing with the issues and problem
arise. According to leadership definition, a leader is one how have considerable and
influential power. McFarland (2015) said, an effective leader is one who makes the issues
happen otherwise which would not happen. Leaders use power when they intend to cause
changes and use influence when they do not intend to cause changes (Kofele-Kale, 2016).
Hook (1973) also shared same view in McFarland (2015) books saying that heroic leaders is
one who makes things happen which otherwise would not happened. This means the heroic
leaders are ones who have preponderant attributes and influential power in determining an
particular issues. This means he prerequisites of effective leadership are power and influence.
Kofele-Kale (2015) said the person who have power and influence to motivate others and
determinate any issue, he/she can be considered as a leader. In other word, a good leader

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should have influence and power of transforming something from common situations to
precious situation (McFarland, 2015).
5.2 Key themes/theories

The digital revolution transforms practice and leaders worldwide


According to Berger (2012), the digital revolution in 21st Century transform leaders practices
and affects their roles in decision making. The survey conducted by Mullins (2014) discloses
that 23% of participants believe technologies used in leadership manage flow and speed of
information. Then, 15.3% of participants said use of social media is rising in leadership
practices in organizations. Next, 12.2% of respondents said technologies used in leadership
practices improve communication between leaders and followers. Then, 11.9% digital
revolution deals with fast-moving crises. According to McFarland (2015), The leaders in
current business world are creating strategies to manage digital revolution but facing
challenges in developing meaningful and reliable measures. This is because some nations are
moving faster than others.
Diverse issues tap different leadership capabilities
As Berger (2012) notes, the 21st Century leaders depend on different leadership dimensions
to deal with diverse issues. The best leaders are those who can test the leaderships in crises
and can posses rich multidimensional capabilities (Parsons, 2015). The leaders can also
include other professionals with these dimensions in their planning and thinking, and having
power vision (McFarland, 2015).
Excellent leadership is multidimensional, complex, and global
According to Berger (2012), the 21st leadership should be multidimensional, complex and
global, where the leaders should integrate cultural and structural factors, behaviors, traits and
skills. According Parsons (2015), the multidimensional issues should include ethical
orientation, self-insight, communication knowledge management, relationship building, team
collaboration, and strategic decision making capability.
Soft skills and self-insights are the Holy Grail of future leaders.
According to Berger (2012), soft skills and self-insight are essentials to enhance measurement
skills. The soft skills include cultural sensitivity, better listening, conflict resolution
capabilities, emotional intelligence, and change management skills (Rose, 2012). The leaders
should also focuses on systematic changes like global education curriculum, accreditation,
enforcement of ethical codes, measurement standards (Siegel, 2010). On the other hand, self-

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insight refers to the pathway for creating greater self-awareness which support in developing
leadership skills and improving relations with followers (Parsons, 2015).
5.3 Potential applications and implications

Gardner (2014) stated that leaders have duties to support the communities and societies, in
setting goals and priorities, maintaining public morale, nurturing and motivating public unity.
In addition, Drucker (2016) said leaders should do right things to promote community goals,
redesign organizations to gain the expected outcome. Bennis (2015) stated that effective
leaders must have four key competencies: a) good leaders engage others; b) good leaders
have a clear vision; c) good leaders motivate others, and d) good leaders create shared
meaning and gain vision. Bennis (2015) also said that a true leader have distinctive voice
with sense of self, self-confidence and purpose, integrity with strong moral, and have
adaptive capacity and competence. Salman (2012) said effective leaderships move vision of a
person to higher sights improve individual performance to higher standard. The reason is
Siegel (2010) said human mind regulates the energy and information flow. Thus, a good
leader should a good listener and should be a good decision maker. Patterson, Grenny,
McMillan and Switzler (2013) said, effective leaders should have three key traits: a) vision
for the future organizational success; b) trust of followers; and c) effective communication
skills. Kotter (2015) said a leader can also be considered as a manager, where all leaders can
be good managers but all managers cannot be goo leaders.

5.0 Conclusion
The finding this report emphasizes that leaders in 21st Century must gain knowledge and
understand to navigate through current highly competitive global economy, uncertain and
complex terrain. To gain the organizational goals and objectives, the 21st Century leaders
must be able to leader their followers by empowering and motivating them in the workplace
to gain improved business performance. Thus, the leaders must understand the emotional
intelligence of followers, train and develop the followers to extend their knowledge and
understanding on the businesses aims and objectives and business function. The, the 21st
Century leaders must understand that many of the skills worked in 19th and 20th century
organizations are not suitable in present business world. Therefore, the leaders must take
effective strategies with flexible mindset to adapt the businesses and followers in the cultural
changes, socially responsible behavior, economic volatility, and environmental changes.
Next, the 21st Century leaders must have sufficient knowledge on technologies, media

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literacy, information and communication technologies. In a word, a successful leader in 21st
Century must understand the emotional and social intelligence of followers.

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