Subject: –  Critical Issues in Business(Module Code: STRM042-AUTAS)                                Module Tutor:                 Ma’am Marta Ciach                              Submitted by:-       Shubham TaterStudent ID: 18400112                                                Submission Date: 28thJan. 2018         S.No Title 1 INTRODUCTION OF LEADERSHIP       1.


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1 MEASUREMENT OF RISK      3.2 DIFFERENCE BETWEEN RISK AND UNCERTANITY      3.3 SOURCES OF UNCERTANITY      3.4 UNCERTANITY AT THE AGE OF 21ST CENTURY      3.5 HOW TO DEAL WITH UNCERTANITY 4 CONCLUSION 5 REFERENCE                                                                                         LEADERSHIP INTRODUCTIONLeadershipcan be defined as a term that lead with a team or group in real skill thatrequire time, dedication and thought of mind. Leadership makes a differencebetween success and failure of any organization because it is the oneoverarching topic that takes time it may seem overwhelmingly complex, but byfocusing on some fundamentals you will find that you can lead your team withconfidence and skill. Leadership require planning that provide us direction todo a task in an allocating manner so that proper utilization of recourses cantake place. As it help in solving problems by setting strategies.

   NATURE OF LEADERSHIP 1)      Leadership is a personalquality –The first characteristics of a leadership are that it is aquality possess by a person who has a skill to manage the group or a team in amost effective manner so that task should be perform more efficiently and in aeffective manner.2)      Leadership is a process ofinfluencing –It is a process of influencing the behaviour, attitude andbelief of the subordinates so that a team can achieve a common goal.3)      Leadership style changesaccording to circumstances -Leadership style changes according to circumstances as itinvolves readiness to accept complete responsibility in all situations.4)      Leadership exists with thefollowers-It is true that if there is no follower there is noleadership. It require a person to follow then only leadership completes itstask. So that common goals can be achieve in a effective manner.           STYLE OF LEADERSHIP A)     Leadership Style Based on Attitude andBehaviour àAutocratic or Authoritarian Style LeaderThatdeals with absolute power.

Under this style, the leader expects from completeobedience from his/her subordinates and decision-making is centralised in theleader. àLaissez-Faire or Free-Rein Style LeaderInthis style of leadership style that give maximum freedom is allowed tosubordinates in the decision making process, to decide their own policies andmethod to make independent decisions. That type of style createsself-confidence with the subordinates.

à Paternalistic Style LeaderThistype of leadership involves sentiments and emotions of people. A paternalisticleader is a father of his subordinates In this style subordinates depends uponleader as a way son is dependent upon his/her father. This style deals with afamily function. B)     Formal and Informal Leader FORMALLEADERAformal leader is one who is formally appointed or elected to direct and controlthe activities of the subordinates. He is a person creates by the formalstructure, enjoy organisational authority .They have two-fold responsibility.On the one hand, he has to fulfil the demands of the organisation, on the otherhe is also supposed to help, guide and direct his subordinates in satisfyingtheir needs and aspirations.

 INFORMALLEADERAInformal leaders are not formally recognized. They derive authority from thepeople who are under their influence. In any organisation we can always find somepersons who command respect and who are approached to help guide and protectthe interest of the people.

They are known as informal leaders. They have onetask that is to help their followers in achieving their group goals. (Raza)  LEADERSHIP FUNCTIONS1)      Setting Goals –A leader is expected to perform creativefunction of a laying out goals and policies to persuade the subordinates towork with zeal and confidence.2)      Organizing –3)      The second function of a leader is to create andshape the organisation on scientific lines by assigning roles appropriate toindividual abilities with the view to make its various components to operatesensitively towards the achievement of enterprise goals.4)      Initiating Action –This function of a leader is to take theinitiative in all matters of interest and they should not depend upon othersfor decision and judgement.5)      Co-Ordination –A leader has to reconcile the interests of theindividual members of the group with that of the organisation.

He has to ensurevoluntary co-operation from the group in realizing the common objectives.6)      Link between Management and Workers –A leader works as a necessary link between themanagement and the workers.He interprets the policies and programmes ofthe management to this subordinate and represent interests before themanagement.

 (Simmons, 2010) GLOBALISATIONGlobalisation is the phenomenon which has brought the worldtogether at one flat platform where there is an all aspects of contemporarylife ranging from social, cultural, economic, political, life-styles etc. It isa remarkable phenomenon by which many geographical and cultural barriers havecome down gradually and the entire world has become a global village. It is therapid expansion of communication and transportation which has reduced distancesand generated an everlasting interdependence among people and nations at alllevels.

The term globalisation is derived from the word “globalize” which stoodfor an international network of economic systems where all economies aredirected towards a global market. Global and multinational financialinstitutions exercise great control on the economic decision-making andprocesses of the world nation.” Globalisation can thus be seen as a phenomenonof transformation of economic, technological, socio-cultural and politicalforces at local or regional levels to international scale.     IMPACT OF GLOBALIZATION ON ETHICAL LEADERSHIP Globalization has affectedleadership and management style in many ways: 1) Customer and Markets 2) Competitors 3) International employee transfer andincreased opportunities.

     Globalizationhas a great impact on businesses in many ways it has made business much moredifficult, complex and at the same time profitable. It is a fact thatleadership style for every country is different and it is not necessary that agood leader in one country will be a good leader in anothercountry.                                                                                                                                            As countries havetheir own cultures, ways, beliefs, customs and social standards it is veryimportant for a leader to understand and consider them.

A leader who has theknowledge or who is familiar with a country’s customs, culture, ethics, ways,and traditions is the one who will provide effective and beneficial leadershipto the business. Awareness, sensitivity to standards and cultural difference,integrity, courage and strong business knowledge are the skills that make aleader successful in the global world. So for leadership to be effectiveculture, standards and customs of the country must be taken intoconsideration.          UNCERTANITYUncertainty hasbeen called “an unintelligible expression without a straightforwarddescription”. It describes a situation involving ambiguous or unknown information.

It applies to predictions of future events, to physicalmeasurements that are already made, or to the unknown. Uncertainty arisesin partially observable and environments.It arises in any number of fields including insurance, philosophy, physics, statistics, economics, finance, psychology, sociology, engineering, metrology, meteorology, ecology and information science.The lack of certainty, a state of limited knowledge where it is impossible toexactly describe the existing state, a future outcome, or more than onepossible outcome. (Davis)   Measurement of risk A set of measured uncertainties where somepossible outcomes are losses, and the magnitudes of those losses – this alsoincludes loss functions over continuous variables.

Ineconomics, Frank Knight distinguished it in 1921 fromrisk as uncertainty being risk which is immeasurable, impossible to calculate,and referred to as Knightinguncertainty:Uncertainty must be taken in a sense radicallydistinct from the familiar notion of risk, from which it has never beenproperly separated…

. The essential fact is that ‘risk’ means in some cases aquantity susceptible of measurement, while at other times it is somethingdistinctly not of this character; and there are far-reaching and crucialdifferences in the bearings of the phenomena depending on which of the two isreally present and operating…. It will appear that a measurable uncertainty,or ‘risk’ proper, as we shall use the term, is so far different from an immeasurableone that it is not in effect an uncertainty at all.

 (Tanwar, 2017)  Differencebetween Risk and UncertaintyThe following are a fewdifferences between risk and uncertainty:·        In risk you can predict thepossibility of a future outcome while in uncertainty you cannot predict thepossibility of a future outcome.·        Risk can be managed whileuncertainty is uncontrollable.·        Risks can be measured andquantified while uncertainty cannot.·        You can assign a probability torisks events, while with uncertainty you can’t.  (S, 2016)  UNCERTANITYAT THE AGE OF 21ST CENTURYUncertaintyhas become a distinctive feature of our lives in the 21st century.  The principle of uncertainty would have beensurprised by the degree to which things have become unstable and uncertain.This is rather ironic because this is supposed to be the age of enlightenedrationalism, science and freedom.

But the realities of the post-modern andpost-industrial world tell a different story.Theironies of the present age are not limited to the principle of uncertainty.This was supposed to become the age of high humanism where Huxley’s “bravenew world” would have protected human lives and preserved human dignity.The promise of modernity was justice, freedom and equality for all. But wewitness some of the most inhuman and barbaric atrocities taking place beforeour eyes in the 21st century.

The global refugee crisis alone is sufficient toshow the level of hypocrisy and double standards in the face of the loftyideals of the current global order. Syrian, Libyan, Afgan, Somalian andRohingya refugees, among others, tell a shameful story of indifference anddisrespect. The fact that they happen to be Muslims says something about theethno-centric perceptions of the human condition in the present age.Butabove all, uncertainty can teach us humility – a key virtue that we haveforgotten in the modern world. The Enlightenment philosophy placed the humanbeing at the center of an infinite and self-regulating universe and got rid ofthe medieval conceptions of God and the created-limited world. It thus madehuman beings the masters of the universe. With means and capabilities providedby scientific and technological advancement, the Enlightenment men did think ofthemselves as the new masters of the world. It did not take too long for this”master” to turn into an exploiter and spoiler.

Uncertaintymay not be something desirable in everything. Certainty is a key component ofour beliefs and actions. But given the hubris and arrogance of the moderncivilization that we have built, it may be prudent to acknowledge ourlimitations and act with a sense of humility toward other human beings and theuniverse of which we are part. By destroying the universe of which we claim tobe the masters, we are destroying our present and future.

I hope we realizethis simple but fundamental fact before it is too late. (Coles, 2016)Share on FacebookHOWTO DEAL WITH UNCERTANITY1.      Replaceexpectation with planningTodeal with uncertainty one should deal with planning so that process shouldfunction properly.

Do planning first so the one can deal with uncertainty.2.      Preparefor different possibilitiesThemost difficult part of uncertainty, at least for me, is the inability to planand feel in control. Until I know where I am going to live.

3.      Focuson what you can control Often , we overlook the little things we can do to makelife easier while obsessing about the big things we can’t do. Control a littlethings so that it will not become big that is out of control.4.      PracticeMindfulness when you obsess about a tomorrow you can’t control,you’re too busy judging what hasn’t happened yet to fully experience. Whilemeditation is the best way to become more mindful, it isn’t the only approach.Sometimes it helps me to take an inventory of what’s good in today.              Relationof risk and uncertainty -Risk and uncertainty are differentterms, but most people think they are the same and ignore them.

Managing riskis easier because you can identify risks and develop a response plan in advancebased on your past experience. However, managing uncertainty is very difficultas previous information is not available, too many parameters are involved, andyou cannot predict the outcome. However, to complete your project successfullyyou must be very cautious, proactive, and open minded to manage risk anduncertainty. SOURCE OF UNCERTAINTYParameteruncertaintyThiscomes from the model parameters that are inputs to the computer model(mathematical model) but whose exact values are unknown to experimentalists andcannot be controlled in physical experiments, or whose values cannot be exactlyinferred by statistical methods.

 ParametricvariabilityThiscomes from the variability of input variables of the model. For example, thedimensions of a work piece in a process of manufacture may not be exactly asdesigned and instructed, which would cause variability in its performance. StructuraluncertaintyAlsoknown as model inadequacy, model bias, or model discrepancy, this comes fromthe lack of knowledge of the underlying physics in the problem.

It depends onhow accurately a mathematical model describes the true system for a real-lifesituation, considering the fact that models are almost always onlyapproximations to reality. One example is when modelling the process of afalling object using the free-fall model; the model itself is inaccurate sincethere always exists air friction. In this case, even if there is no unknownparameter in the model, a discrepancy is still expected between the model andtrue physics. ExperimentaluncertaintyAlsoknown as observation error, this comes from the variability of experimentalmeasurements. The experimental uncertainty is inevitable and can be noticed byrepeating a measurement for many times using exactly the same settings for allinputs/variables. (Hartman, 2016)     Conclusion  Leadershipis in the uncertainty stage, this statement is very important in today market,as per the above analysis on this statement we can say that now a day’sleadership is the most crucial and survival factor of organisation success, thereare different nature of leadership and various style of leadership, there arereason for importance of leadership in organisation success as it hassystematic procedure started from setting the goals and with manage therelationship with management and workers, another reason for uncertainty inleadership is due to globalisation of leadership, now it is not restrict up tothe organisational boundary, it spread in all over the world so chances ofuncertainty is more and its impact on (Coles, 2016) leadership, but thevery important for organisation is to differentiate between the uncertainty andrisk , that risk can be measured by some factor and prevent that butuncertainty can’t be measured and prevent and in 21st centaury itharm the business at large level but there are some remedies to recover fromuncertainty risk in today’s era such as work done through planning instead ofexpectation, always mentally prepare for the different number of possibilitiesas outcome and al last always focused on the controlling capacity of anorganisation.

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