Subject: – Critical Issues in Business
(Module Code: STRM042-AUTAS)
Ma’am Marta Ciach
Student ID: 18400112
Submission Date: 28th
NATURE OF LEADERSHIP
STYLE OF LEADERSHIP
GLOBALISATION ON ETHICAL LEADERSHIP
MEASUREMENT OF RISK
RISK AND UNCERTANITY
UNCERTANITY AT THE
AGE OF 21ST CENTURY
HOW TO DEAL WITH
can be defined as a term that lead with a team or group in real skill that
require time, dedication and thought of mind. Leadership makes a difference
between success and failure of any organization because it is the one
overarching topic that takes time it may seem overwhelmingly complex, but by
focusing on some fundamentals you will find that you can lead your team with
confidence and skill. Leadership require planning that provide us direction to
do a task in an allocating manner so that proper utilization of recourses can
take place. As it help in solving problems by setting strategies.
NATURE OF LEADERSHIP
1) Leadership is a personal
The first characteristics of a leadership are that it is a
quality possess by a person who has a skill to manage the group or a team in a
most effective manner so that task should be perform more efficiently and in a
2) Leadership is a process of
It is a process of influencing the behaviour, attitude and
belief of the subordinates so that a team can achieve a common goal.
3) Leadership style changes
according to circumstances –
Leadership style changes according to circumstances as it
involves readiness to accept complete responsibility in all situations.
4) Leadership exists with the
It is true that if there is no follower there is no
leadership. It require a person to follow then only leadership completes its
task. So that common goals can be achieve in a effective manner.
STYLE OF LEADERSHIP
A) Leadership Style Based on Attitude and
àAutocratic or Authoritarian Style Leader
deals with absolute power. Under this style, the leader expects from complete
obedience from his/her subordinates and decision-making is centralised in the
àLaissez-Faire or Free-Rein Style Leader
this style of leadership style that give maximum freedom is allowed to
subordinates in the decision making process, to decide their own policies and
method to make independent decisions. That type of style creates
self-confidence with the subordinates.
à Paternalistic Style Leader
type of leadership involves sentiments and emotions of people. A paternalistic
leader is a father of his subordinates In this style subordinates depends upon
leader as a way son is dependent upon his/her father. This style deals with a
B) Formal and Informal Leader
formal leader is one who is formally appointed or elected to direct and control
the activities of the subordinates. He is a person creates by the formal
structure, enjoy organisational authority .They have two-fold responsibility.
On the one hand, he has to fulfil the demands of the organisation, on the other
he is also supposed to help, guide and direct his subordinates in satisfying
their needs and aspirations.
Informal leaders are not formally recognized. They derive authority from the
people who are under their influence. In any organisation we can always find some
persons who command respect and who are approached to help guide and protect
the interest of the people. They are known as informal leaders. They have one
task that is to help their followers in achieving their group goals. (Raza)
1) Setting Goals –
A leader is expected to perform creative
function of a laying out goals and policies to persuade the subordinates to
work with zeal and confidence.
2) Organizing –
3) The second function of a leader is to create and
shape the organisation on scientific lines by assigning roles appropriate to
individual abilities with the view to make its various components to operate
sensitively towards the achievement of enterprise goals.
4) Initiating Action –
This function of a leader is to take the
initiative in all matters of interest and they should not depend upon others
for decision and judgement.
5) Co-Ordination –
A leader has to reconcile the interests of the
individual members of the group with that of the organisation. He has to ensure
voluntary co-operation from the group in realizing the common objectives.
6) Link between Management and Workers –
A leader works as a necessary link between the
management and the workers.
He interprets the policies and programmes of
the management to this subordinate and represent interests before the
management. (Simmons, 2010)
Globalisation is the phenomenon which has brought the world
together at one flat platform where there is an all aspects of contemporary
life ranging from social, cultural, economic, political, life-styles etc. It is
a remarkable phenomenon by which many geographical and cultural barriers have
come down gradually and the entire world has become a global village. It is the
rapid expansion of communication and transportation which has reduced distances
and generated an everlasting interdependence among people and nations at all
levels. The term globalisation is derived from the word “globalize” which stood
for an international network of economic systems where all economies are
directed towards a global market. Global and multinational financial
institutions exercise great control on the economic decision-making and
processes of the world nation.” Globalisation can thus be seen as a phenomenon
of transformation of economic, technological, socio-cultural and political
forces at local or regional levels to international scale.
IMPACT OF GLOBALIZATION ON ETHICAL LEADERSHIP
Globalization has affected
leadership and management style in many ways:
1) Customer and Markets
3) International employee transfer and
has a great impact on businesses in many ways it has made business much more
difficult, complex and at the same time profitable. It is a fact that
leadership style for every country is different and it is not necessary that a
good leader in one country will be a good leader in another
As countries have
their own cultures, ways, beliefs, customs and social standards it is very
important for a leader to understand and consider them. A leader who has the
knowledge or who is familiar with a country’s customs, culture, ethics, ways,
and traditions is the one who will provide effective and beneficial leadership
to the business. Awareness, sensitivity to standards and cultural difference,
integrity, courage and strong business knowledge are the skills that make a
leader successful in the global world. So for leadership to be effective
culture, standards and customs of the country must be taken into
been called “an unintelligible expression without a straightforward
description”. It describes a situation involving ambiguous or unknown information. It applies to predictions of future events, to physical
measurements that are already made, or to the unknown. Uncertainty arises
in 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 to
exactly describe the existing state, a future outcome, or more than one
possible outcome. (Davis)
Measurement of risk
A set of measured uncertainties where some
possible outcomes are losses, and the magnitudes of those losses – this also
includes loss functions over continuous variables.
economics, Frank Knight distinguished it in 1921 from
risk as uncertainty being risk which is immeasurable, impossible to calculate,
and referred to as Knighting
Uncertainty must be taken in a sense radically
distinct from the familiar notion of risk, from which it has never been
properly separated…. The essential fact is that ‘risk’ means in some cases a
quantity susceptible of measurement, while at other times it is something
distinctly not of this character; and there are far-reaching and crucial
differences in the bearings of the phenomena depending on which of the two is
really 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 immeasurable
one that it is not in effect an uncertainty at all. (Tanwar, 2017)
between Risk and Uncertainty
The following are a few
differences between risk and uncertainty:
In risk you can predict the
possibility of a future outcome while in uncertainty you cannot predict the
possibility of a future outcome.
Risk can be managed while
uncertainty is uncontrollable.
Risks can be measured and
quantified while uncertainty cannot.
You can assign a probability to
risks events, while with uncertainty you can’t. (S, 2016)
AT THE AGE OF 21ST CENTURY
has become a distinctive feature of our lives in the 21st century. The principle of uncertainty would have been
surprised by the degree to which things have become unstable and uncertain.
This is rather ironic because this is supposed to be the age of enlightened
rationalism, science and freedom. But the realities of the post-modern and
post-industrial world tell a different story.
ironies 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 “brave
new world” would have protected human lives and preserved human dignity.
The promise of modernity was justice, freedom and equality for all. But we
witness some of the most inhuman and barbaric atrocities taking place before
our eyes in the 21st century. The global refugee crisis alone is sufficient to
show the level of hypocrisy and double standards in the face of the lofty
ideals of the current global order. Syrian, Libyan, Afgan, Somalian and
Rohingya refugees, among others, tell a shameful story of indifference and
disrespect. The fact that they happen to be Muslims says something about the
ethno-centric perceptions of the human condition in the present age.
above all, uncertainty can teach us humility – a key virtue that we have
forgotten in the modern world. The Enlightenment philosophy placed the human
being at the center of an infinite and self-regulating universe and got rid of
the medieval conceptions of God and the created-limited world. It thus made
human beings the masters of the universe. With means and capabilities provided
by scientific and technological advancement, the Enlightenment men did think of
themselves as the new masters of the world. It did not take too long for this
“master” to turn into an exploiter and spoiler.
may not be something desirable in everything. Certainty is a key component of
our beliefs and actions. But given the hubris and arrogance of the modern
civilization that we have built, it may be prudent to acknowledge our
limitations and act with a sense of humility toward other human beings and the
universe of which we are part. By destroying the universe of which we claim to
be the masters, we are destroying our present and future. I hope we realize
this simple but fundamental fact before it is too late. (Coles, 2016)
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TO DEAL WITH UNCERTANITY
expectation with planning
deal with uncertainty one should deal with planning so that process should
function properly. Do planning first so the one can deal with uncertainty.
for different possibilities
most difficult part of uncertainty, at least for me, is the inability to plan
and feel in control. Until I know where I am going to live.
on what you can control Often , we overlook the little things we can do to make
life easier while obsessing about the big things we can’t do. Control a little
things so that it will not become big that is out of control.
Mindfulness when you obsess about a tomorrow you can’t control,
you’re too busy judging what hasn’t happened yet to fully experience. While
meditation 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.
of risk and uncertainty –
Risk and uncertainty are different
terms, but most people think they are the same and ignore them. Managing risk
is easier because you can identify risks and develop a response plan in advance
based on your past experience. However, managing uncertainty is very difficult
as previous information is not available, too many parameters are involved, and
you cannot predict the outcome. However, to complete your project successfully
you must be very cautious, proactive, and open minded to manage risk and
SOURCE OF UNCERTAINTY
comes from the model parameters that are inputs to the computer model
(mathematical model) but whose exact values are unknown to experimentalists and
cannot be controlled in physical experiments, or whose values cannot be exactly
inferred by statistical methods.
comes from the variability of input variables of the model. For example, the
dimensions of a work piece in a process of manufacture may not be exactly as
designed and instructed, which would cause variability in its performance.
known as model inadequacy, model bias, or model discrepancy, this comes from
the lack of knowledge of the underlying physics in the problem. It depends on
how accurately a mathematical model describes the true system for a real-life
situation, considering the fact that models are almost always only
approximations to reality. One example is when modelling the process of a
falling object using the free-fall model; the model itself is inaccurate since
there always exists air friction. In this case, even if there is no unknown
parameter in the model, a discrepancy is still expected between the model and
known as observation error, this comes from the variability of experimental
measurements. The experimental uncertainty is inevitable and can be noticed by
repeating a measurement for many times using exactly the same settings for all
inputs/variables. (Hartman, 2016)
is 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’s
leadership is the most crucial and survival factor of organisation success, there
are different nature of leadership and various style of leadership, there are
reason for importance of leadership in organisation success as it has
systematic procedure started from setting the goals and with manage the
relationship with management and workers, another reason for uncertainty in
leadership is due to globalisation of leadership, now it is not restrict up to
the organisational boundary, it spread in all over the world so chances of
uncertainty is more and its impact on (Coles, 2016) leadership, but the
very important for organisation is to differentiate between the uncertainty and
risk , that risk can be measured by some factor and prevent that but
uncertainty can’t be measured and prevent and in 21st centaury it
harm the business at large level but there are some remedies to recover from
uncertainty risk in today’s era such as work done through planning instead of
expectation, always mentally prepare for the different number of possibilities
as outcome and al last always focused on the controlling capacity of an
Coles, L. (2016).
Age-of-uncertainty. CIMA .
Davis, N. (n.d.).
Managing Uncertainty by Nicholas Davis. Retrieved Jan 27, 2018, from
The root of leadership. leadership issues .
(2016). Parameter Uncertainty. Parameter Uncertainty .
(2014). Etymology of Leadership. Retrieved Jan 27, 2018, from
(2012). what is Globalisation. the guardian .
Nabi, A. (2017).
The impact of Globalization on Ethical Leadership:. .iium.edu.my/ .
Raza, A. (n.d.). wisetoast.
Retrieved Jan 27, 2018, from http://wisetoast.com:
S, S. (2016).
Difference Between Risk and Uncertainty. keydifferences .
Simmons, B. L.
(2010, sept 19). bretlsimmons. Retrieved Jan 27, 2018, from http://www.bretlsimmons.com:
(2017). Top 3 Methods for Measurement of Risk . yourarticlelibrary.com