In 2004) It is also named managerial leadership. It

 

 In times of uncertainty the examining of a
situation, the focus is on structural components of (e.g., economic indicators)
and interpret them compared with yesterday and what is expected tomorrow. The
ability of a leader in handling situations is situational sensitivity.  This indicates a leader’s talent in perceiving
situations in such a way that require arising leadership in this situation;
this suggests recognizing threats or opportunities. In other words “Without a
crisis there is no need for leadership” ( Paschen, Dihsmaier, 2014)

 

 

It has been
studied by Kenneth Blanch and Paul. The situational leadership focuses on the
leader to have his style depending on the situation of his group and
organization. The aim of the situational leadership is not only the interest
but the development and progress of the organization. Jack Stahl, said that
“The best leaders, he believes, are “situational” — they are able to step into
any circumstance and recognize whether they need to engage at the strategy
level or dive into the nitty-gritty” (Prewitt, 2007). 

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Situational
leadership theory

 

“Studies have
shown transformational leadership practices lead to higher satisfaction with
leader among followers and greater leader effectiveness, while transactional
practices lead to higher follower job satisfaction and leader job
performance”.( Judge, Timothy A., and Ronald F. Piccolo, 2004)

It is also named
managerial leadership. It describes the role of supervision and performance and
the performance of the group. Leaders enhance compliances of his/her followers
through rewards and punishment. This style is most used by managers. It is
based on exchange between leaders and followers.

 

Transactional leadership
theory

 

At the other side
of the leadership style, Bums viewed the transformational leader as one who gets
with others in such a way that the leader and the follower raise each other to
a high level of inspiration and morality.

Is a style of
leadership that is considered to be the most inspiring where the leaders works
with the followers to identify the important changes, making new visions to
lead the changes and inspire organizations members to achieve what is beyond
work require. When the leader focus is on the changes and environment, a
certain extent of experience must be shown internally. “It requires the
transformational leader to embrace two divergent mind-sets, one that flourishes
in chaos and the other that foster order” (Hacker, Stephen, and Tammy Roberts,
2003)

 

Transformational
leadership theory

 

Some organizations
are capable to get use rapidly to the changes in the environment others are not
managing to do the same and fail to progress. The difference in leadership
styles and theories can help to explain this.

 

Theories:

 

One of the good
examples of  leader that can manage
organization in the time of uncertainty is  Kevin Cox, CHRO of American Express presented a
case in the Annual Human
Capital Association Symposium, during the financial crises in 2008, which impacted
most of the financial services industry, the bank has decided to launch new
banks products like certificate of deposit business to diversify funding and
participate in the U.S. government’s Troubled Assets Relief Program (TARP),
Cox’s role was to take care of the of the company’s employees interest   and to
respond to the changing economic and regulatory pressures throughout the
uncertainty of the financial crisis. This was not an easy challenge Cox faced this
crisis according to his experience and his knowledge how to direct through
uncertain times. He recommended to get more communication, and emphasised that
leaders need to interact more, during times of crisis. He emphasized the value
of being honest with employees and dealing with them as adults. More than that,
he asserted that it is not a shame to do not know an information you are
supposed to know about your work when you actually do not.       

In times of uncertainty the business world
changes a lot and the key traits necessary for the leaders to achieve success
may also differ. The ability to deal with new situations is a must.

·       
Cultivate
learning agility: Effective leaders take the advance in
finding opportunities to learn. They usually experiment with new aspects, using
modern techniques the report says. And they conceive carefully to reflect
on their experiences so they can know better from successes and failures.”

·       
Develop personal
adaptability:
Again, this can be a
matter of understanding the continual changes that is occurring. One thing
which will have worked within the past will not essentially work once more.
Adaptable leader should search on how matters are done and look at the new
realties with contemporary eye to get worth opportunities.

·       
Inspire
engagement: it is
important to keep workers at all levels in the company interested and engaged
within the work done. It is regarding giving them valuable feeling as a lot of
people are staying in their jobs for years but 
they are not adding value for their organizations if they are not
invested in their work.it is up to the leader to make the workers feel they are
creating  difference atmosphere.

·       
Leverage networks: great leaders makes a lot of consideration on
networking for the advantage of the organization and to create relationship
between customers, supplies and competitors.

·       
Foster innovation: with the increasing level of competition, “no
strategy can sustain a company competitive edge indefinitely” the report mentions.
No matter how productive, there will be continually stress on innovation.
Effective leader perceive  this and
target on taking business to high levels

·       
Act strategically: effective leaders should have strategic skills and
thinking globally. Leaders must always be prepared to adjust their strategies
to capture emerging opportunities.

·       
Manage global business: effective leader can manage global
business and they have to understand the global market all the time and should
have visibility on customers, competitors and vendors and how to operate the
global business.

·       
Manage complexity: successful leaders has the ability to manage the
complexity and have the skills to solve problems and make decision. Effective
leaders must assess a situation complexity and choose appropriate courses of
action

A lot of
leadership researchers in the 21st century to identify the
leadership capabilities to come over business complexity. According to( Axon ,
friedman, Jordan 2015) in Harvard Business Publishing report about “Leading Now
:Critical capabilities for a complex world” ,it described eight leadership
capabilities for a leader to increase his effectiveness in a the complex
(uncertainty). The report stated that the leaders should have:

 

 

That’s for the
reason that these leaders are strongly suitable to decrease people uncertainty.
 The best leaders in uncertain times know
how to be adaptable and cannot depend on old tried and measured
techniques. 

Preliminary
research supports this proposition that uncertainty increases followers’
preference for narcissistic (Nevicka, De Hoogh, Van Vianen, & Ten
Velden, 2013) and autocratic leadership (Rast et
al., 2013; Schoel, Bluemke, Mueller, &
Stahlberg, 2011).

History is full of
autocratic leaders that emerged and have great influence on people. Example,
Steve Jobs is known for some people to be autocratic leaders that’s because of
the uncertainty that’s appear in the technology and economy of Apple. Also
George W. Bush was known uncharismatic and unsuccessful leader before 9/11.
However his rate and citizen perception increased high after 9/11 after he
supported a very autocratic aspect toward terrorism and immigration.

In times of
uncertainty people seek highly reliable groups with strong powerful leadership
and clear defines structures. That’s for the reason that these leaders are well
suited to reduce uncertainty among their members. This indicates that feeling
uncertain can create change people perceptions. People may tend to heuristic
thinking when they feel uncertain (e.g., Tversky &
Kahneman, 1974).

 

Leadership and
uncertainty

 

 

Great leaders are
born or made. Some people think that leaders are born with the important characteristics
that make them great leader. On the other hand some people think that
leadership qualities are gained, learned, and developed through the entire life.
 It is important to notice that the links
between demonstration of leadership and personality traits have always been
modest, even though research has been made that has shown a significant
connection between leadership and personality traits. (Yukl, 2002, p
185-192).   Yukl mentioned also that
leader should be self-confident, responsible, good planner and can tolerate
stress. In addition to have good experience and knowledge.

 

Leader personality
characteristics

 

 

 

 

 

 

 

 

 As mentioned by Yukl´s (1998, p. 257f.) assessment
of the trait research, there are some method and concepts that should be
thought of in the future analysis. Two points have to be typically identified.
First the mentioned traits are too abstract that marked it hard to interrupt their
relation to leadership effectiveness. Second the effect of every single trait
on behavior has been investigated on an individual basis, while not taking into
thought the relation between traits.

Trait leadership
is defined as integrated patterns of personal characteristics that reflect a
range of individual differences and foster consistent leader effectiveness
across a variety of group and organizational situations (Zaccaro, Kemp, &
Bader, 2004). The theory of trait leadership originated from old leadership research
which stressed mainly on finding a group of heritable attributes that
distinguish leaders from other people. Many researches have discussed that
leadership is unique to only selected individuals and that these individuals
attain certain traits than can not be improved. There is still some
considerations among researchers to use the trait term in evaluating
leadership. Some inborn characteristics means that not anyone can be a leader
that was concern of some psychologists.

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