Northouse (2015) depict that leadership is crucial for a business for guiding all the subordinates and take strategies that can enhance the productivity of the organization. These leaders are also liable to improve the ability of the employees and hep them to succeed under pressure. Nahavandi (2016) furthermore stated that effective leaders also take initiatives to enhance the emotional intelligence and seriousness in business operations. The different styles and theories of leadership have been modified in passage of time and none of them can be considered as completely irrelevant to the present market scenario. Every organization consists of the different processes, roles, objectives and goals; an effective leader binds the organization together in order to achieve the goals of the stakeholders and maintain the long-term sustainability. Fairhurst and Connaughton (2014) also affirms that in it is also an important trait of a leader to research about the existing market condition and prepare the company to survive any kind of change. However, in recent times, the world has become versatile and new challenges arrived every moment. Antonakis and Day (2017) has identified some of the major challenges that a leader has to address that are surviving globalization and rapidly changing technology and successful implementation of innovative business operations. In this essay, the leadership style of two leaders, one international and another nation leader will be taken into consideration. Alan Joyce and Richard Goyder are the two Australian business leaders selected in this essay. Their leadership style will be analysed to discuss in what ways their approach help their respective organizations to overcome the contemporary challenges. Moreover, various leadership theories will be used to explain the traits and characteristics of the two business leaders.
Richard Goyder is the CEO of the wesfarmers and is liable to operate 200,000 people all from their sector of retailing, insurance, resources, chemicals, safety product divisions, fertilisers, energy and industrial. The leader also follows the leadership style of visionary leadership. Tourish (2014) stated that a visionary leadership recognize steps and processes that can bring the advantage of the organization. He has the vision to make their retail business a success and hence decided to include diversification in terms of recruitment. The diversification can also be seen through their different business operation through which they have targeted significant percentage of the customer. Moreover, Daft (2014) highlight that Richard Goyder believed that there are three major aspects that a leader should follow that are setting clear directions, keep good and motivating people in the organization so that positive culture can be motivated and then formulating regulations so that all the employees can live the standards of the organization. It is also found that the leader not only emphasized on the diversification of the organization and their employee but also in the gender equality, pays equality, employee safety and thus focuses on the effective organizational culture. Carter (2015) stated that this leader give more importance to the employee as they are the building block of an organization and communicate with the users directly. They also provide women the same empowerment and in recent times, women hold 47% of the salaried roles in the organization and more than 4,000 indigenous team members employees (Sustainability.wesfarmers.com.au, 2017).
Image: Association of women participation and community contribution
(Source: Sustainability.wesfarmers.com.au, 2017)
Thus, respecting employees and providing them equal opportunity motivates them to remain associated with the organization. In this way, Richard Goyder has overcome the adversity of developing and retaining talent.
As stated by Chemers (2014), contingency theory of leadership gives importance to both the situation and leadership personality of people. The contingency theory of leadership has outlined two basic requirements in a leadership style, a leader will have to be task oriented and relationship motivated. According to contingency theory, there is no correct form of leadership and depending on the situation, leadership styles changes (Northouse, 2015). Thus, the different styles of leadership are developed to monitor, manage and motivate the employees so that the organizational goals can be achieved. Globalization has changed the global organizational scenario and leaders face challenges in managing diverse employees. Thus, the complexity in organizational management is increasing significantly and the essay, will enunciate the leadership styles and actions taken by Alan Joyce and Richard Goyder. Alan Joyce is the chief executive officer of Qantas airlines where as Richard Goyder has been the most influential leader in Australia and has been behind the success of Wesfarmers.
As stated by D. Waters (2013), the global environment has become complex, volatile and uncertain that has led to the emergence of threats in the market. Thus, continuous learning and adaptability is a key element for being a successful global leader. According to Lussier and Achua (2015), leadership style and unique characteristics of the person will determine the ability of the person to manage and cope up with the complex business situations. Wesfarmers have a diversified portfolio and has its presence in hotels, super markets, liquor and convenience stores. Wesfarmers is the largest employer in Australia and has a huge consumer base; Richard Goyder has been instrumental in fulfilling the needs of the consumers and maintained their competitive advantage in the market that is highly competitive. He has been overseeing the transformation of Coles, which is evident from the increase in market returns in the past decades. Good management and leadership are essential for the success of the organization and Wesfarmers is a perfect example of this. According to Richard Goyder, it is essential to maintain a strong culture in service in retail industry. Therefore, the leader will have to identify the effective business model, which is appropriate for the industry.
As stated by Parkay et al. (2014), transformation is crucial in implementing change management within an organization, Coles initially had a notorious past and business experts were against this acquisition. Even though, Wesfarmers never had similar past experiences, Goyder was confident of the fact his team and management style would transform the organization in being better reputable organization in the market. Richard Goyder’s achievements has made him qualified enough to be called as a remarkable leader due to his optimistic approach of thinking. Coles is one of the market leaders in the retail grocery industry and has second largest share in the market. This shows the journey of the company is inspirational where the organization had made drastic improvements in their operations and management. The leaders also felt the importance of operating their operations through internet and modern technology. Richard also implements technologies like Computerized Shipping and Tracking, Radio Frequency Identification (RFID), Radio Frequency Identification (RFID) and use of POS machines are also some required change that is incorporated so that inventory can be managed and users can get their products in correct time (Carter, 2015). This denotes the ability to incorporate technological advancement and retain the global demands and rapidly changing technology.
The employees in the organization are drawn towards him for advice due to his charismatic personality. Moreover, he takes responsibility of the things done wrong by him and rectifies the mistakes. Thus, he thinks in order to achieve change in the organization, the CEO requires something more than eloquence and persuasiveness. Thus, the sense of adaptability within him is very high and instances such as responding to the removal of trade hour restrictions has facilitated the organization to maintain change within the organization. Thus, the organization adapted 24?7 culture of online business, which shows that a leader will have to adapt to different situations in the market. The leadership style of Richard Goyder is multi dimensional which is very much evident from the given instances. Moreover, Richard Goyder also adopts some initiative to make their business eco-friendly like development of green packaging system and focusing on recycling and reusing of products so that the adversity of the climate change can be overcome (Sustainability.wesfarmers.com.au, 2017).
Richard Goyder is a participative leader that can be understood from the various instances of his characteristics features. He is not an egocentric and considers that good people surround him. He is honest and trustworthy leader that has been proved by various researchers, which can be understood from the fact that he accepted his strengths and weaknesses readily. He has been leading by example and providing the employees with inspiration so that they can follow the same path in shaping their career. He believes in making a combined effort, which has provided Wesfarmers with better results. Moreover, he does not interfere in the work of the subordinates, which shows that that the subordinates are provide with enough exposure so that they can grow at both individual and organizational level. He has taken tough decisions and has been authoritative about some of his decisions. This validates the contingency theory of leadership and gives importance to the situations. Thus, depending on different situations the leadership style will change. Richards Goyder shows Laissez faire characteristic in some instances where he provides flexibility and freedom to do their own thing. As stated by (Carter, 2015), the laissez faire leadership style lacks supervision and regular feedback from the subordinates
Leadership style of Alan Joyce
Alan Joyce is the CEO of the Qantas from the consecutive seven years. Bird et al. (2016) stated that every leader has the responsibility to enhance the productivity as well as profitability but in case of Alan Joyce, the situation differs. The organization suffers a loss in the year 2014 (Statista, 2017). The annual profit before taxes in 2012 was around AUS $95 million; however, the concerned organization have incurred the lost of AUS $646 million in 2014 (Statista, 2017).
Image: Pre-tax profit of Qantas Airways from 2012-2016
(Source: Statista, 2017)
However, from the data published in the Sydney Morning Herald that $252 million was lost on the first half of the year 2014 which resulted in job cuts of 5,000 (The Sydney Morning Herald, 2017). It is also found that Alan Joyce comes into position of the CEO when the situation started getting worse that is in the year 2008, the price of the crude oil had raised and simultaneously there were extra demand from China for the Olympic Games. The primary reason of the prime hiking of the crude oil is the shortage of crude oil. In the year 2004, IEA estimated that in future the global price will rise to by around 1.6% pa resulting of shortage of 4 mb/d in 2008 (Adele Ferguson, 2017). There are several critics present in the market who have said that the CEO does not even think of their employee and hence took the decision of job cutting in 2008. In reality, Irish-born Joyce did not just survive his critics but includes more heroes to their organization compared to villains. Antonakis and Day (2017) stated that Alan Joyce is now believe to be the biggest turnaround in the Australian corporate history.
Thus, it can be said that the leadership style followed by Alan Joyce was autocratic leadership as Alan Joyce said that “The current position in unstable” and this was the reason that he had to followed autocratic leadership style. Nahavandi (2016) stated that authoritarian leadership is also another synonym for autocratic leadership style and it focuses more on the control over all decisions irrespective of the fact whether or not their subordinate are in favor of that decision. Northouse (2015) stated that autocratic leadership plays a crucial role when the employee or subordinate’s need sudden direction to overcome the situation and in case of Qantas the company’s main intention was to overcome the adversity. Reiche et al. (2017) furthermore explains that some major characteristics of autocratic leadership is taking no input from group members, take all the liability of the decisions, dictate all the work approaches, tendency to work in a structured manner and being a task oriented leaders. Mulki et al. (2015) on the other hand argued that in such cases, employee might get discouraged out-of-the box thinking and innovative idea and this might results in resignation and dissatisfaction among the subordinates. Liddle and Pugalis (2014) furthermore added that in the year 2011, Qantas cuts to its international operations and setting up a new premium carrier based in Singapore so that they can grab new opportunities in airline of Asia (The Sydney Morning Herald, 2017). Alan Joyce also took the initiative of formulating airline alliance partnerships for business globalization. The globalization can also see through the initiatives of outsourcing of the engines maintenance in Asian countries like Malaysia. Tourish (2014) also stated that globalization is also attained through the recruitment of effective staffs from other territory if they have the potential to perform their business operations. Alan Joyce have collaborated with the Human Resource department of their organization and also outsource pilots and cabin staffs from new Zealand and Asia respectively at lower wages paid in Australia (Lussier & Achua 2015).
Alan Joyce also adopted the leadership style of strategic leadership style. DuBrin (2015) stated that in strategic leadership style, a leader is liable to fulfill all the gaps for new possibility and try to overcome the adverse situation that has arrived. Daft (2014) furthermore state that through this leadership style, an organization naturally expects that they can survive the change involved in the organization and experts believed that 55% normally involves strategic thinking. Alan Joynce have taken some strategic steps like talk to people in business and their subordinates and also the people belong to airline circles. These people also believed that Alan Joyce always take decisions large amount of risk. Joyce said that “One of the things we are good at in the aviation industry is managing risk”. Alan establishes clear rules and expects team members to follow those formulated rules so that desired result can be attained. The concerned leaders also develop a research and development team that researches on the current demand of the market and then develop training program for their staffs so that the change management can be survived. Storey et al. (2016) stated that this way is also fruitful to assess which employee can sustain the change and beneficial to retain for the organization. Jensen (2017) stated that Alan Joyce remained loyal to their organization and once he said that if a person is not disrupting themselves, someone else joins the race and disrupt the former person. In 2011 also Qantas grounded the airline over the industrial dispute and the Share prices as low as 97 cents but Joyce demonstrates his loyalty to his vision and worked for the development of the airline services. This is the reason that the company is the most profitable airlines in the world in recent times and their share processes were high as $6.45 in October, 2017. Thus, it can be stated that from this observation Alan Joyce has fulfilled another trait of a strategic leadership that is “judicious of power”, where he made wise use of his power and developed consent for their ideas.
The leader also welcomes the traits of a transformational leadership style, where he can change the management of the organization according to the recent demand of the customer as well as the market. Lees-Marshment (2016) highlight that Alan Joyce now emphasized on “aircraft technology” and have also targeted the route that is not adapted by other airways so that customer can opt for their service of they have to travel in those places. This denotes the ability to bring technological innovation that can be witnessed from the development of Airbus A380 with low noise production, low turbulence and low energy consumption and capability to acquire more than 747 passengers (DuBrin, 2015). Alan had challenged Boeing and Airbus for initiating the trip that can be initiated from both London and to New York (Heraldsun.com.au, 2017). The development of strategic business partnership is one of the crucial step of that leadership style and it is estimated that by the year 2020, both Boeing and Airbus the route for the desired location can be established (Heraldsun.com.au, 2017).
However, it can be recommended to the CEO of Qantas to evaluate the operational functionality of the entire company from the initial stages. Chemers (2014) suggested one effective way to gather all the information of the organization is to evaluate the departmental report once in a week. In this way, any discrepancies can be identified prior generation of any adversity. In such cases, trained staffs for research and development department and clerical staffs is more required. Daft (2014) also give the advice that regular training is also important as it keep the staffs up to date from the recent requirement and demand that is required for development of the organization. Thus, it can be said that Alan Joyce should adapt contingency leadership where it is believe that there is not fixed style of leadership and leaders can take effective decision based on the situation. This can be witnessed by their infinitive for adapting the online technology, where customers can manage their flight booking through internet. This proves that this implementation of the technology help them not only to globalize their technology but also to survive the recent demand of the market.
Thus, it can be concluded from the entire study that both the leaders that are Richard Goyder and Alan Joyce followed effective strategies that is beneficial for their organization. It can also be said that the kind of leadership a leader follow depends on the requirement of the organization. Thus, when the sudden change management is handles in the organization, autocratic leadership style should be followed by the leaders, which is followed by Alan Joyce. However, he has also followed the leadership style of strategic leadership and transformational leadership style in order to sustain the change management. On the other hand, Richard Goyder possesses a visionary leadership style and emphasized on the diversification. Moreover, he also focuses on contingency theory of leadership and followed the traits of task oriented and relationship motivated. This leader also prefers to retain the best candidates in their organization and provide equal opportunity to all the employees irrespective of their gender or traditional beliefs. Richard Goyder also adapts continuous learning and adaptability and follow transformation leadership style. Lastly, the style that can define the traits of Richard Goyder is the participative nature, where he includes all the s to take effective decisions for their team. Lastly, the concerned leader also adapts Laissez faire characteristic and provides flexibility and freedom.
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