Leadership in a Changing Environment Essay Example | Topics and Well Written Essays - 2500 words

Leadership in a Changing Environment - Essay Example There are many ways in which Kirsty’s leadership approach has been reflected in the modern leadership theory. Based on modern understanding of a good leadership style, leaders are expected to be able to inspire another person to increase their drive in achieving the organizational goals (Northhouse, 2010, pp. 3 – 4). Aside from having confidence in managing a group of employees, modern leaders are expected to have the desire to lead, be honest, and have sufficient knowledge in managing the business (ibid). Clear evidence in the shift from a traditional leadership approach to a modern leadership approach is her decision to move from the use of transactional leadership style to transformational. In the past, Kirsty as a manager was a control freak. In line with this, most of the managers who adopt the use of old transactional leadership style approach ends up using authoritative power when handling and managing the people. Because of the increase in tight competition within the domestic and global markets, the need to encourage and inspire employees to become self-reliant becomes more in demand. Instead of managing the company using top-down approach, the idea of promoting interaction between the leaders and subordinates has gained importance within the modern HR theories. In a top-down management technique, decision-making power with regards to the allocation of available resources, planning and controlling how to spend the money is highly centralized and concentrated with the business leaders. There is a saying that two-heads is always better than one. Since decision-making process is solely dependent with the managers and business owners, the problem with the use of pure top-down management approach is that the business leaders and owners are not able to consider the personal opinion and suggestions coming from the bottom-line employees. Therefore, there is a bigger possibility that the top management will end up making a wrong business