Tuesday, May 5, 2020

Comparison and Effect of Leadership in Securities Industry

Question: Write about theComparison and Effect of Leadership in Securities Industry. Answer: Literature Review Traditional leadership style is widely based on the traditional method of leading people for accomplishing the organizational goals. The literature study helps in understanding the underlying theoretical developments of the leadership styles. The research study aims to focus on the effects comparison of the leadership styles in the securities industry, especially in the stock market sector. In this literature section, the study would develop the clear understanding about the characteristics and the significance of the traditional leadership style. It has been observed that empathic leaderships are generally applied to the security firms for motivating the workforce and directing them towards the right track in a complex scenario (Cox, Hannif and Rowley 2014). However, on the other hand, the beneficial traits of the traditional leadership help in increasing value of the stock exchanges or the security companies. Hence, the literature study would explore the comparative analysis of the se leadership styles by discussing the suitability in this competitive scenario. Concept of Traditional Leadership In the year of 1947, Max Weber introduced the traditional leadership style along with two other styles, such as charismatic and bureaucratic. As per the conceptual ideas present in this specific leadership style, it is believed that the power is bestowed on a leader by concentrating on the past traditions. Weber was the first to distinguish between the leaders, such as charismatic leaders, bureaucratic leaders, transactional leaders, and the transformational leaders. Traditional leadership styles are often viewed by categorizing their perceptive values. According to Nanjundeswaraswamy (2015), leaders are often viewed as having the power and control due to the people who were previously in the same position and they had that power and control. In other words, as argued by Parker, Holesgrove and Pathak (2015), leaders are usually followed not because of the individuals, but their personal loyalty to the position. The modern leadership was originated from the industrial revolution when employees needed to follow the leaders who were completely authoritative in making decisions. In many of the companies, the leaders follow the fruitful leadership style selected from such traditional method. The types of the traditional leaders and their characteristics are described further: Types of Traditional Leadership Styles According to Nanjundeswaraswamy and Swamy (2014), leadership style is clearly defined by the method of leading the organisation by a person. The traditional method of leading people is characterized by the diverse nature of the leadership. These different types of leadership styles are as follows: Autocratic leadership: An autocratic leader holds the entire responsibility and authority of an organisation. Shu (2015) defined that the autocratic leaders make the decision without consulting any other subordinate in the organisation. This leadership style has no or little flexibility, which may sometimes create the negative impact on the working associates. Donald Trump is an example of autocratic leader in his business and he set a new standard of excellence. Democratic leadership: A democratic leaders consult the other subordinates to make the relevant decision. Unlike the autocratic leadership style, this leadership style is centered on the contribution of the other subordinates (Schedlitzki and Edwards 2017). The leadership style is much flexible and it helps in motivating people associated with the organisation. Steve Jobs is the most significant example of a democratic leader who regained the lost vision of Apple Inc. Strategic Leadership: McCleskey (2014) explained that the strategic leader is often considered as the head of the organisation. The strategic leaders deal with all level of the employees within the organisation. In other words, it can be implied that the strategic leaders fill the gap between the need for practicality and the need for new possibility. Transformational Leadership: The transformational leaders initiate changes in groups, oneself, and in organisation. It is to be indicated that the transformational leaders motivate the other employees in every possible ways. With the help of such leadership skills, the employees can improve their personal and professional attributes as well. Team Leadership: Al-Asfour and Lettau (2014) implied that team leadership often involves with the creation of the clear and vivid picture of the future. The vision of such leadership styles inspire the associates and provide the strengthened approach of direction and purpose. The leaders associated with this leadership style are more likely developing the coordination and cohesiveness among the team members to accomplish the pre-determined goals. Cross-cultural Leadership: The cross cultural leadership style is essential in an organisation where the various types of cultural values are present. This specific leadership style has industrialized as the form of recognizing the front runners working in the contemporary scenario of the globalised market (Shen and Austin 2017). Facilitative Leadership: The facilitative leaders are more dependent on the outcomes and measurements than the actual skills. The facilitative leaders shed lights on the process if it develops the higher performance parameter. Laissez-faire Leadership: In a laissez-faire leadership style, the employees receive the authority to work according to their ability (Lappalainen 2015). The leadership style lacks the closer supervision due to which it is often perceived as less satisfying and least effective. Transactional Leadership: Transactional leadership involves the exchange process whereby the followers receive the tangible rewards and immediate result out of the orders of their leaders. Charismatic Leadership: The charismatic leaders manifest the revolutionary power that transforms the values and beliefs of the followers. The charismatic leaders have the potentiality to improve the visionary and modify the working forms of the associated to derive more benefits. Application of traditional leadership in Security Companies Maintenance of the high empathy is essential for a leader while working in an organisation with all other associates. Security Industry includes the securities firms, banks and asset management companies. These companies serve the public and private clients armed and unarmed services of security (Guinalu and Jordn 2016). The security industry being combined with Financial Markets Association forms a United States industry trade group and represents various kinds of security industries. The traditional leadership approach in the security company can be interpreted in diverse ways. For example, the transformational leaders help the employees to develop their professional and personal skills. The complex technicalities utilized in the security company is a suitable platform for these leaders to enhance the knowledge of the employees by providing them the fruitful training session (Buble, Juras and Mati? 2014). On the other hand, the transactional leaders can reward or punish the employe es as per their performance outcome. Security Company testifies such ability of the employees and provide the insight of selecting right leadership approach. The hypothesis of the research concentrates on the differences between the empathic leadership and traditional leadership. It has been identified that the traditional approaches in the leadership style provides the diverse scenario in which the leaders can collaborate with the workforce. The closer supervision with the workforce helps in creating the vision for future. Yahaya and Ebrahim (2016) implied that leaders need to maintain the empathy but need to follow the right track of leading people. The security companies develop solutions for the business problems or protecting the confidential data. In many of the cases, the security companies deal with the technological aspects that require proper training and skilled attributes of the workers. The application of the traditional leadership helps in developing such efficiency skills of the associated employees. The traditional leaders provide the effective training session or monitor the activities of the employees in order to bring m ore improvement in their performance (McFadden, Stock and Gowen III 2015). The traditional leaders, with their diverse attributes, help the associates to improve their personal and professional skills for generating high end performance outcome. The traditional leaders provide the insights and work on upgrading the attributes of the workforce. The security companies require building trust and reliability to provide the necessary services or solutions. The traditional leaders play the most important role in developing the effectiveness among the workers. Therefore, the security companies require adopting the traditional leadership to build reliability and high standard work ethics. Application of empathic leadership in Security Companies The empathic leadership style depends on the directive and motivational aspects. In order to create the higher level of motivation, the leaders need to consider the situation and the specific direct at the beginning. The empathic leadership style includes the coaching leadership, delegating leadership, instructive leadership, and supportive leadership. Presence of these attributes help in creating the high level of motivation within the workplace. According to Northouse (2018), empathic leaders identifies the needs of the motivation and provides the supports to the associates. In a security company, the techniques used for performing functionalities are quite complex. The empathic leaders need to decide the method of supporting the workers as per the situations. For instance, when one employee requires directive leadership at the initial stage, it is essential to provide the right direction before allocating any job. The supports from the empathic leaders are necessary in such circum stances. While applied on the security companies, the empathic leaders need to develop the right direction and enriched knowledge about the security services and technological skills. Developing the higher skills in a dynamic and complex scenario creates the greater impacts on the minds of the employees. Khan and Adnan (2014) explained that the empathic leaders share the information with the associates to generate the sense of responsibility and direct efficiency for performing in a better manner. Security companies require the staffs that are quite responsible towards their works and maintain confidentiality while working any security projects. During the development of any complex project or high level of security services that are needed to be delivered to the potential clients, the security company requires the association of empathic leaders. Comparative analysis The traditional leaders and empathic leaders have the diverse characteristics while applied into the business. According to Ward (2016), the traditional leaders seek stability while the companies face the challenges from both the internal and external markets. On the contrary, Bowers, Hall and Srinivasan (2017) empathic leaders believe in rapid changes in the technologies and functionalities to develop more upgraded solutions. The traditional leaders are more focused in achieving the short term objectives whereas the empathic leaders create insights for the long term future prospects. In the security industry, this long term aspects are quite necessary, but in case of crisis, it is essential to fulfill the short term objectives as well. Another comparison provided by Yahaya and Ebrahim (2016) to define the traits of the traditional leaders. It is stated that the traditional leaders believe in creating bureaucracy, regulations and rules to develop the high level of performance outcome . On the contrary, the empathic leaders are much inclined towards creating networks, sharing vision, and establishing long term missions. However, it can be implied that in spite of the value based implications derived from the traditional approaches, the security industry can adopt more innovative approaches by developing the empathic views of the modern leaders. Relevancy of Conducting the Research (Research Question) The research explores the leadership traits present in the traditional and modern approach. It has been observed that the current business world is facing considerable challenges due to the continuous changes and technological development. A leader is the pathfinder to direct the employees towards the right track and strengthen their skills to take active participation in a competitive scenario. The research study helps in identifying the traditional leadership styles and empathic leadership styles. The comparative analysis present in the research provides the idea about the most suitable leadership approaches that can be applied to the security industry. The extensive research information gathered from the secondary source and the theoretical analysis of different leadership style clarify the idea of the subject area much significantly. Hence, it can be implied that the research is conducted to strengthen the analytical skills regarding the application of most suitable leadership st yle in the security firms. Gap in the Literature The major gap in the literature is the time constraints. The entire leadership study is vast and it requires enough time to cover up the core concepts of the leadership style. The time constraints prevented the study to be described more elaborately. However, the changing business scenario often demands for the diverse nature of the leaders based on the situation. Therefore, the exact form of leadership suitable for this industry is still to be argued. 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