Question:
Discuss about the Leadership Styles in Corporate Social Responsibility.
An organisation is made up of a large set of employees who work together to attain the organisational goals. This study will highlight the role of leadership of different leaders in meeting the organisational objectives. Leadership is a critical thing in terms of organisational success that underpins both theoretical and practical knowledge of the leaders. Leaders need to have critical thinking spirit, risk-taking ability and decision-making capability in order to make the organisational successful, motivate the employees and productivity of the organisation. In this report, in the first part, three Australian CEO’s role in leadership will be analysed with setting the examples. In the later part, their leadership in work-related environment and their effectiveness in organisations will be discussed. Thereafter, a critical aspect of leadership with comparing and contrasting their roles will be analysed. This study is intended to highlight the organisational issue of one of the leaders. In the final section, recommendations will be made in terms of improvement of leadership effectiveness.
Alan Joyce has been Managing Director and Chief Executive Officer of Qantas Group since the time of 2008. He has done graduation in Applied Science (Physics, Maths) and then he completed MSc. He has a degree in M, FTSE and FRAeS. He was born in the year 1996 in the suburb of Dublin. He was a student of Royal Aeronautical Society. Joyce made a huge transformation in Qantas Airlines and the organisation saw the best financial performance in the year 2016 almost after 96 years in employee engagement and customer satisfaction. Qantas was privatised in the year 1995 and the organisation started its diversification of Loyalty business. Joyce served previously as CEO in Jetstar almost for five years and within Jetstar, Joyce started its operation in Asia and Australia. Before Jetstar, he employed in Qantas, Aer Lingus and Ansett (Afr.com, 2017) [Financial Review Australia]. He saw renewed growth of Qantas in international market and renewal of fleet with more than 150 aircraft. Apart from this, Alan Joyce is world’s most influential gay business leader.
Andrew (Andy) Penn is CEO of Telstra and Penn was announced as CEO of Telstra after David Thodey in 2015. At first, Penn was CFO of Telstra and then he became CEO. Penn has 30 years of experience in executive before joining to Telstra. Penn is from the UK and then he moved to Australia in the year 1992. He did his MBA from Kingston University and he also did FCCA from Harvard Business School. Before joining in Telstra, Penn served in National Mutual and this organisation later merged to AXA. He became the CEO of AXA Asia Pacific and Penn became one of the seven directors of AXA. However, Penn’s leadership is not happy hours for Telstra as investors cannot trust Penn and former CEO Thodey negotiated with investors. Moreover, Penn cut the dividend and he failed to communicate with the market (Thewest.com.au, 2017) [The West Australian Newspaper]. Penn has contributed to not-for-profit causes and community affairs. Penn has a passion for Visual Arts.
Bradford Banducci is the CEO of Woolworths Ltd and he has been CEO of Woolworths since 2016 February. Before joining to Woolworths, he has been Managing Director of Australian Food and Liquor sector of Woolworths during the time of 2015-16. He has done LLB from the University of KwaZulu-Natal and he also has Bachelor’s Degree in Commerce from the same university. He is the board members of Woolworths Ltd and he was Board Member of Gage roads Brewing Ltd during 2012-2015. In a previous time, Banducci was a sewing salesman in South Africa and Woolworths recruited Banducci as CEO when the organisation has been into the loss of market sales and momentum in supermarkets. Banducci’s performance in managing director of the liquor business and his leadership style allured the board of directors and made him CEO of Woolworths (Afr.com, 2017) [Australia Financial Review].
Alan Joyce is one of the highest profile leaders in Australia and he has to take a tough decision in his leadership. In the year 2011, Joyce had to face the backlash of the public in grounding the airline and during his time, airlines saw the worst loss. However, Qantas is now one of the most profitable airlines in the world and it is possible because of Joyce’s gutsy decision; however, these decisions came later.
Andrew Penn is ambitious by heart and he can set the priorities for the organisation. In a previous time, David Thodey was a participative leader and Penn has been reshaping the leadership. Penn’s decisions are mainly short-term and in order to reshape the board of members, he mainly uses the strategy of creating a new position and appoints senior executives of the reputed company (Thewest.com.au, 2017).
Banducci was appointed CEO of Woolworth in March 2015 and he joined Woolworths after the acquisition of Callermasters, a retail company of wine. He was an executive officer in Callermasters. The first work of Banducci did be to manage the stores of Woolworths and products that it offers. Banducci unveiled then his desire of aspiration with a long-term target of sales growth at least up to 4%. The cross-cultural issue is prevalent in Woolworths stores and Banducci tried to engage the employees by providing training in order to satisfy customers as last four consecutive financial years, liquor sales fell down. Banducci clarified that supermarket sales affected because of Chinese import laws. He holds the final responsibility in delegating the authority and he determines the work discussing with management (Afr.com, 2017).
Alan Joyce had a challenging start in the beginning and Joyce showed classic leadership style who had greater communication, decisiveness, team working and accountability. In order to have results, he took the decisions in the later period, not instantly. Joyce had a long-term goal and he has been ambitious. Joyce wanted to keep the heritage of Qantas and his leadership style can be conceptualised as a strategic leadership style. As stated by (), strategic leadership style is about keeping eyes at all levels and this type of leader is a high performance leader. They create high-performance team, life and organisation with their strategies. Joyce tried to fill the gap between practicality and possibility by setting the habits of the employees.
Telstra’s Penn uses the leadership style of team leadership as he tries to make an experienced team for running the organisation effectively. Telstra’s new team is full of experienced executives from Microsoft, Nokia and others. As pointed out by Clarke (2013), team leadership impacts on the vivid picture of the bigger frame of the organisation, vision of the team leaders are clear and they inspire the team members. Penn provides a strong goal and sense of direction and purpose.
Woolworths’ CEO Banducci believes in democratic leadership as he always has interests in involving subordinates in working. Woolworths is a supermarket and engaging a huge number of employees is tough and he determines the positions of the employees. The communication of Woolworths is upward and also downward. As stated by Ross et al., (2014), democratic leadership style provides fairness, creativity, competence, intelligence and courage of the leaders.
Joyce has a visionary mind and his team has also a vision. He set the target for the team and his team and strategies tried to achieve these. His essence of strategic leadership is about having a direction, strategy, vision and compatible team. Moreover, Joyce believes in creating a diverse team as unless the team is diverse, the focus of the team would be narrowed down. Joyce has big ideas and he does not want to make these ideas stifled. He always documented risks and makes a mitigation actions by contingency plan. Without taking a calculated risk, no organisation can gain success.
Penn’s working behind the Telstra’s success is important and it gave breathing space for the management. Penn made the corporate culture of Telstra from arrogant to responsive and personality change of management and employees is a sure success of Penn (Thewest.com.au, 2017). Penn brought technological change in making a communication to customers, in this way, Telstra’s business started to shine. Embracing the sentiments of the customers, governments and regulators gave the success to Penn and Telstra.
Woolworths has been facing the issues of loss of market share and employee engagement. However, rivalry with Coles makes another loss of customers. Woolworth is making the mistake; however, he learned from the mistake and cleaned up the mistakes. He followed the similar practices of other retails and focus on what he does not know about the organisation. Banducci is a collaborative, open and honest leader and he never bullies the employees and he is trying to be self-made.
Satisfying organisational demands for leaders think about to propose that taking the point of view of both the leaders and supporters are similarly vital for compelling initiative improvement. In the event that a leader can’t or unmotivated to build up, an improvement program, paying little respect to quality or length, will be ineffective. Moreover, the Visionary factor is the most important feature in leadership. In talking about leaders, the first thing that comes to mind is someone with an exceptional, extraordinary idea. The visionary leader is considered to focus on the long term. A visionary leader is someone with a great prospect. This type of leader isn’t that much of a person who constantly tells everyone what to do. The visionary creates a clear image, and tells the people where they are heading, but don’t command them how to get there (Du et al., 2013). Joyce demonstrated his financial decision-making capability in making the business profitable. Joyce is courageous and he managed the airlines and unions with a successful strategy. Joyce did not think of resigning when the airline saw the loss of 2.8 billion AUD in the year 2014 (Giltinane, 2013). In addition, Joyce let the team members ask questions and Joyce thinks these questions open up the opportunity and helps to make a strategy. Joyce gave Qantas what the management and board of members expected from him and he always involves himself in strategic thinking. Joyce has been trying to make strong management and this management is healthy and it is significantly productive. Joyce tries to make capable workforce through employing training and development. Soft-spoken employees with good communication skills of the employees bring out the profitability. Joyce looks into the financial management as he regulated investment with growth.
Moreover, it is important to understand the adherent desires, responses toward the leader all through the improvement procedure, and what endeavours can be set up to create solid followership. Employee’s desires and responses are not just pointers of a leader’s prosperity or disappointment however they can likewise impact a leader’s future advancement. This proposes administration isn’t just about the leader, however, is shared and conveyed because of communications between the leader and others. Despite the strategy utilized, look into indicates successful authority advancement requires. This approach means there is very little guidance. Followers have complete freedom to make decisions (Nahavandi, 2016). These leaders have the chance to work with experts and high-skilled people and in every other situation. The type of powerful people who can lead people in the right direction when they are working with experts Penn has faced a crisis in managing the profit for the organisation, moreover, Penn drove the higher customer satisfaction and lower the costs of the products to increase profit. Penn’s leadership concept is a combination of heart and mind and he recognises the teamwork must involve cooperative leadership. Telstra has been through most important corporate transformation and Penn’s confident and logical work made improvement for Telstra. Telstra changed the culture of corporate life and the organisation was trying to make itself a contender in the competitive market. Penn and his predecessor tried to disrupt the status quo and made innovation redefining the organisational purposes.
Affiliative leadership is all about bonding. Making people feel good and appreciated is the most important objective. Results or performance are not the main focus. Shockley-Zalabak, (2014), still convinced the affiliative type of leader is just some made up, idealistic person. Banducci tried to provide better customer experiences by engaging employees through training. Delivering in-store experiences to the customers is needed and Banducci provided this. The employees like the democratic leadership style as they can convey their message to the CEO.
Qantas has been facing the issue of managing the workforce and Joyce wants to rebuild the relations after the disputes with the workforce. Qantas’ stakeholders are passengers, government and workforce, however, workforce’s decisions impact on the management of Qantas. British Airways has been facing the issues of long industrial relations with many of flight attendants. In before time, Joyce had to sack 5000 employees and he had to consider the interest of workforce stakeholder (Afr.com, 2017). Some applauded the tactic of Joyce and this quick victory will not work in the long run as Qantas has to survive in the competitive market. Qantas share price has fallen down and on that time Joyce’s pay increased a significant high. Workforces of Qantas have not been working that would help the management to meet the organisational goals. Moreover, the team working structure is not working within the organisation. Moreover, the Qantas has been facing the issue of the economic downturn. Joyce follows mainly strategic leadership styles and this kind of leaders tries to set the prescriptive set of habits to the team members to follow.
In order to keep them free from workforce crisis and rebuild the relations of the workforce, Joyce could increase the pay of the workforce as he had increased his own pay. This strategy is different from what he used to take; however, it would bring fairness, trust, fairness and democracy within the organisation. The success of a company relies heavily on the employees. The coaching type of leadership makes employees better is crucial, even necessary to ameliorate the company. The coaching type of leader tries to identify the strengths and the weaknesses of their team members. Doing this requires a high-level empathy and good psychological insight. More important, making other people better and it is a feedback mechanism that works in both ways. Joyce could take the strategy of the development strategy of training and team building within the organisation could give the organisation a better workforce. The concept of ‘work together’ could work for Qantas in this scenario, as the organisation has been facing an economic problem, Joyce needs to listen to the voice of workforce. Joyce could convene joint working party and develop a strategy of workforce engagement would give benefit as Qantas employees have to work directly with the customers. Essence is one of the qualities of a leader and Joyce needs to put values and emotional characteristics within his leadership and that would work for him. Employees are felt compelled with the one who has a commitment towards organisation and who has energy. A Strong essence of leadership makes employees engage to the organisation. As opined by Kirkman & Harris (2017). Essence is the decisions, behaviours and actions of the leaders that express the qualities of leadership. Most importantly, a key aspect of the success of Joyce depends on consistency and commanding behaviour can bring out engagement also. Their authority depends on orders, the threat of disciplinary action, and tight control, maybe it is in certain situations. For example, the company is in a crisis. Being the laissez-faire leader or being super-visionary probably won’t get the company to anywhere (Hoch & Kozlowski, 2014). In these situations, management needs someone who knows what to do and who renders authority. Joyce could learn from other airlines also, in this scenario, Southwest airline will be the best as the size and volume it is similar to Qantas and Southwest treats the workforce as source of value.
Leadership qualities are important for an organisation to hold the success. First of all, Alan Joyce has a simple issue, he feels excited whenever he gets any new idea. He feels that he has resources to offer any solutions. He seems to observe forward and the plan will definitely work out. However, the story is not the same. His strategic leadership style has not been working in recent time and he could take participative leadership style as it gives the benefits to ask the answers from employees also. The staff of the organisation can give their valuable decisions in participative leadership (LaMagdeleine, 2016). Staffs can highlight the prominent issue and the majority of votes of the employees will judge the course of action. Alan Joyce has to lead an experienced team; it could be a one-to-one team and inspire the individuals to do the work effectively. He needs to sow the empathy as it is part of high emotional intelligence. In addition, in case of Andrew Penn, he believes in making the experienced team, in this regard, he could follow leading others within a team. The skills needs for this are goal setting, communication and delegating. Communication is important and clear communication brings transparency and people can discuss and negotiate. Lastly, Banducci has to manage a team of retail enterprise and the number of retail employees is high. In this regard, democratic leadership style is appropriate and leading a perfect work culture is very important. Banducci’s selected work culture engages the employees and he likes to lead the employees by examples and his demeanour impact the team members.
Most of the leaders spend time in their career as executives and they follow the vision of their peers. In order to be attentive and goal focus, the leaders need to make good relationship with all levels of employees. effective communication can build rapport with employees.
Direct interaction cannot be made by the CEO of an organisation, however, in order to make productive of human capital, the mentorship is important. The leaders can speak in front of others and listen to the voice of the employees. Leaders should do something constructive and mentor the employees.
Leaders must make expectations from the employees and they need to take accountability of the requirements. Team leaders need to set the objectives from the very beginning and instruct the employees to work on those principles. Spending on personal accountability, budgeting and valuable time make difference within the organisation.
Organisation’s mission statement encapsulates the values of the organisation and the leaders must bring these values to life through their style, speaking, working culture and actions. Values like integrity, honesty, communication and capability make a huge impact on the morale of the employees.
Reference List
Andy Penn. (2017). The West Australian. Retrieved 1 October 2017, from https://thewest.com.au/business/andy-penn-ng-ya-253383
Aritz, J., & Walker, R. C. (2014). Leadership styles in multicultural groups: Americans and East Asians working together. International Journal of Business Communication, 51(1), 72-92.
Clarke, S. (2013). Safety leadership: A meta?analytic review of transformational and transactional leadership styles as antecedents of safety behaviours. Journal of Occupational and Organizational Psychology, 86(1), 22-49.
Du, S., Swaen, V., Lindgreen, A., & Sen, S. (2013). The roles of leadership styles in corporate social responsibility. Journal of business ethics, 114(1), 155-169.
Giltinane, C. L. (2013). Leadership styles and theories. Nursing Standard, 27(41), 35-39.
Hoch, J. E., & Kozlowski, S. W. (2014). Leading virtual teams: Hierarchical leadership, structural supports, and shared team leadership. Journal of applied psychology, 99(3), 390.
Kirkman, B. L., & Harris, T. B. (2017). 3D Team Leadership: A New Approach for Complex Teams. Stanford University Press.
LaMagdeleine, D. R. (2016). The Leadership Imagination: An Introduction to Taxonomic Leadership Analysis. Edward Elgar Publishing.
Nahavandi, A. (2016). The Art and Science of Leadership -Global Edition. Sydney: Pearson.
Ross, E. J., Fitzpatrick, J. J., Click, E. R., Krouse, H. J., & Clavelle, J. T. (2014). Transformational leadership practices of nurse leaders in professional nursing associations. Journal of Nursing Administration, 44(4), 201-206.
Shockley-Zalabak, P. (2014). Fundamentals of organizational communication. Sydney: Pearson.
True Leaders 2016: How Qantas CEO Alan Joyce became the turnaround king. (2017). Financial Review. Retrieved 1 October 2017, from https://www.afr.com/brand/boss/true-leaders-2016-alan-joyce-qantas-ceo-20160711-gq37e9
Woolworths new CEO Brad Banducci takes helm and promises ‘authentic’ leadership. (2017). Financial Review. Retrieved 1 October 2017, from https://www.afr.com/business/retail/woolworths-new-ceo-brad-banducci-takes-helm-and-promises-authentic-leadership-20160225-gn4754
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