Why Are Leadership Skills Necessary In Multi Nationals Today



With the introduction of globalization, there has been a drastic change in the corporate sector. With more competition in this area, it is seen that new companies are jumping in the arena ad resigning plans, strategies and methods in order to gain a status and identity in this corporate world. In doing this, the multinational organizations need to look in to various aspects and one of this is the personal and professional skills of the leaders. It was sensed that leadership skills are an important component among the rest that drives multinational organizations towards success (Arvey, R.D., Rotundo, M., Johnson, W., Zhang, Z., & McGue, M. (2006). Pp 1-20). Thus, importance of leadership skills has increased in the past some years and has also made a rapid speed development. This development has been possible due to the different regulations and also the governance has played a very important role in bringing up this global business, trading and also the different investments schemes. (Arvey, R.D., Rotundo, M., et al(2006).pp1-20). Due to globalization today companies especially the private ones have been able to make huge profits and not only that but also have made recognition in the market for themselves. Today leadership has gained lot of importance and is a very necessary component today that gets the workers motivated today and helps the workers to do even better than they ever did (Bass, B.M. & Bass, R.(2008). pp 5). This has also given the companies a huge competitive advantage and they are able to face their competitors today without much hassle. That is one of the main reasons why MNCs look for leaders so that helps them to do better and also have an edge over their competitors companies (Burns, J. M. (1998) .pp 76). 

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. This research study has laid importance and has also focused in understanding the various skills that a leader of an organization needs so that he is able to work well in the global scenario and there is a need to understand as to how exactly globalization creates an influence on the leadership skills (Foti, R. J., & Hauenstein, N. M. A. (2007).,pp 347-355).

Introduction of this research:

It is seen that they strive to achieve success in the rat race of the corporate world, multinational organizations strive hard to stand rooted in the market. This ensures a lot of competition on the part of the multinational organizations (George J.M. (2000), pp.1027-1055). This ensures that multinational companies devote lots of effort in ore to ensure that all the aspects of the organization is up to date and ready to match the strict competition in the market. Owing to this, multinational organizations also work hard and find out the means that ensure that they become part of the globalization process and thus are able to establish itself as a brand name and an important player in the corporate world (Lord , R.G ., De Vader , C.L ., & Alliger , G.M . (1996 . pp . 402-410). MNC's are seeing progress daily and it is due to the understanding that they have towards human resource and the keep in mind various aspects when they appoint managers today who are able to apply leadership skills at the global level.(Burns, J. M. (1978)pp76). In Today companies do not just appoint leaders but they also see to it that they are trained and also developed well and this is one of the main criteria's that companies have today. For this reason companies take up different practices that make their leaders developed and even efficient enough so that they do not just lead a team but also are prepared to take the responsibility that comes in at global level so that they are better off than the others (Gershenoff, A. G., & Foti, R. J.(2003). Pp 170 - 196). These kinds of leadership qualities are understood by everyone well and especially the management consultants, Human resource managers and also other members feel the need to understand it so that they can easily fit in the context that is offered at global level (Lord , R.G ., De Vader , C.L ., & Alliger , G.M . (1996 . pp . 402-410). Leadership at global level makes the companies understand the state that exist at the current level and even helps companies to face the reality that is there today so that corporations are prepared and that is how they can also get their employees well prepared and also understand the scenario (Kouzes, J., and Posner, B.(2007) pp 98).

. Research aims

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The main aim of this research is to check and investigate as to what exactly global leadership is and what is the role that it plays in MNCs. This research work intends to study the multinational organizations and investigate on the important components that helps to establish a niche in the corporate world (Lord , R.G ., De Vader , C.L ., & Alliger , G.M . (1996 . pp . 402-410). The main aim of the research work is thus to study the internal structure and work flow of multinational organizations and find out the role that global leadership skills play in establishing the multinational organization (Mann, R.D.(1999). pp 241-270). Studying the multinational organizations and finding out the role played by global leaders in helping achieve success is the primary aim of this research work.

Research Objectives

The various research objectives that are outlines that aid this research work are given below:

Study the competition that exists at global level in today's multinational organization.

Identify the basic areas in multinational organizations that demand improvement and innovation

Study the global skills that are required by multinational organizations to manage the employees.

Identify the advantages of having an effective leader in multinational organizations

Study of the various training that are conducted by multinational organizations in order to aid the managers of a multinational organization to manage the tem.

Demonstrate an understanding of the various skills set which makes leaders a success globally.

Demonstrate the leadership skills that are required by leaders to manage a diverse workforce in multinational organizations.

Study of the strategies and techniques that leaders follow to manage teams effectively in multinational organizations

If the objectives and the aims want to be satisfied then they have to be analyzed and there should also be a proper research carried out on the problem that pertains so that a depth study is taken up and it helps to get the review of the topic (Lord , R.G ., De Vader , C.L ., & Alliger , G.M . (1996 . pp . 402-410). The literature study that will be done on the topic will also help to get the required idea as to what the topic offers and will help to get a solution to their problems also that leaders tend to put up with.

Literature review:

The increasing strict competition in the corporate world has sensitized multinational companies to ensure that the internal structure, work flow and most importantly the leadership skills of the managers and top executives (Mumford , M. D. , Zaccaro , S. J ., Harding , F. D. , Jacobs , T. O ., & Fleishman, E.A (2000) .,pp 11 - 35). Thus for selecting individuals with effective leadership skills, the leaders and also the HR managers have to play an important role. While recruiting leaders, the HR management department needs to ensure that the managers have effective leadership skills (Smith, J.A., & Foti R.J.(1998). pp147-160). Core leadership and various other capabilities which organizations tend to have helps them to get the influence over the various global markets and also derives a long term accomplishment for them (Stogdill, R.M. (1998). Pp 35-71). Leadership is said to be that strategic tool which helps firms to acquire and also to sustain a position for then even if there is huge competition today. HR managers need to know the various leadership traits so they are not short of them when they actually need it and that is something that is expected from them. (Kickul, J., & Neuman, G(2000).pp27-51)Leaders that are aware of these components find it easy to create facilities to words and can also plan many actions in order to articulate them and also fulfill the exact purpose that their organization has.

Many managers and also candidates which are trained so that they adopt leadership skills and it helps them to facilitate skills and build them and get it personalized and also interpret their core values (Mumford , M. D. , Zaccaro , S. J ., Harding , F. D. , Jacobs , T. O ., & Fleishman, E.A (2000) .,pp 11 - 35). Leaders should have the ability by which they can strengthen their multicultural teams and also give them an idea of how they have to work in networked environment. Leaders have to be able to solve conflict also that arise between parties and they should also do everything creatively so that the clients get satisfied. These leaders are like stewards for personal resources so they have to interact and learn everything that comes their way. (Zaccaro , S. J ., Gulick , L.M.V . & Khare , V.P.(2008) pp . 13-29)

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Leaders also have to develop new ways of thinking, attitudes, behaviors and even the competencies at times when a change occurs in the company's strategies (Smith, J.A., & Foti, R.J. (1998) pp 147-160). Leaders should also help in different levels and should also be very socially skilled and most importantly they need to know the culture and even the norms when they work at the global level. It is difficult to understand different cultures of various countries, but leaders that operate at the global level need to get an experience because it is crucial for their company so that it can operate at all levels (Mumford , M. D. , Zaccaro , S. J ., Harding , F. D. , Jacobs , T. O ., & Fleishman, E.A (2000) .,pp 11 - 35). Today a company's main need cited is to hire leaders that are said to be highly developed and they are the ones which help companies to get a place for them in this kind of market scenario. Good leaders are those who have skills and also the qualities and that are what help the workers that are there in the company. (Smith, J.A., & Foti R.J.(1998) pp147-160).Leaders even need to have idea of the productive ways and that is important that they are prepared with aspects so they can help the one that needs them. These skills make leaders to help the others get comfortable since they have to work daily in the same scenario and it also makes them sustained in the global world that is there today (Mumford , M. D. , Zaccaro , S. J ., Harding , F. D. , Jacobs , T. O ., & Fleishman, E.A (2000) .,pp 11 - 35).

It helps others as well as the leaders by moving them forward in the career that is there globally. With productive strategies leaders are able to balance various backgrounds and they also acquire ideas by which they can influence others and also get the work done on time (Mumford , M. D. , Zaccaro , S. J ., Harding , F. D. , Jacobs , T. O ., & Fleishman, E.A (2000) .,pp 11 - 35). Even when there is urgency at the work it can be looked into by leaders and he also has to manage the negotiations well so that the main purpose is solved and also the challenges and the responsibilities are set. Companies should understand why they are important for them since they are the ones which help the organization to get successful. It also creates influence since they get advantage over competitors also. (Stogdill, R.M.(1948).pp35-71).

Research methodology:

In this section the various techniques will be explained and also undertaken that will help to meet the objectives that companies have and will also see to it that their goals are met. (Magnusson, D. (1995). pp. 219-247)An understanding level will be drawn by the research methods so that relevant data will be gathered and also the data will be analyzed well so that the research design will also get known.

In order to complete the research, various methods will be used. Out of these, the two types used in this research work are given below:

Case Study: it is seen that in order to study the leadership skills in global leaders in multinational organization, this method will prove to be very useful (Zaccaro , S. J ., Gulick , L.M.V . & Khare , V.P.(2008) pp . 13-29). This is because using this method, a few multinational organizations or geographical location can be selected on which the research can be carried out). As the research topic is a vast one, it will be seen that the through the case study method the area of research can be limited and also can be ensured that the data collected is authentic(Smith, J.A., & Foti, R.J. (1998) pp 147-160.

Qualitative research: This approach encourages the research to get in to the why and how of the research aims and objectives. This research is based more on academic lines and tries to question and understand the human behavior. Through various case studied and study of the various situations, this method of research is fruitful(Lord , R.G ., De Vader , C.L ., & Alliger , G.M . (1996 . pp . 402-410). Various theories of leadership will be taken into account in order to collect data using the qualitative research method.

Quantitative research methods: This research method uses the various first hand or primary sources of data collections. Using these methods, the research needs to visit the places and get in touch with eh respondents and then collect information.

Collection of Data:

Primary collection of data

Usually primary data gives the first idea of the study and also gives a background that is needed which is confirmed with relevant sources so that study gets even easier (Zaccaro , S. J ., Gulick , L.M.V . & Khare , V.P.(2008) pp . 13-29). The data is said to be easy but is not used for this research because there is a need for only the secondary data with which the study will be concluded.

Secondary collection of data

Secondary research cannot be said as first hand review but is the one that gathers secondary data and background information that is needed. (Mumford, M. D., Zaccaro, S. J., Harding, et al(2000) pp11-35). It will give different outlook to whole study so that it gets more interesting and will be understood also in depth. It will also consider the present scenario by accessing different books and even blogs where the information tends to be loaded (Lord , R.G ., De Vader , C.L ., & Alliger , G.M . (1996 . pp . 402-410). Focus also will be there on subject so that its background can be provided.

Role of Ethics

This research topic is such that ethics plays an important role in that. While interviewing respondents and managers of multinational organization in order to find out about the leadership skills and techniques used by them, the research may get hold of information that is important for the organization and confidential too (Zaccaro , S. J ., Gulick , L.M.V . & Khare , V.P.(2008) pp . 13-29). In such cases, the research has to abide by the standards of ethics. The research needs to ensure that this confidential information is not leaked out. In addition to that, while questioning the leaders about their leadership skills, the researcher needs to ensure that he ors he does not need up asking questions that are too personal or confidential.

In addition to that, rules of ethics also need to be kept in mind while collection and analysis of data (Gershenoff , A. G ., & Foti , R. J . (2003) . pp170 - 196). The researcher should not be caused towards the multinational organizations and the skills that leaders require. This is important to ensure that the data collected and the research done is authentic and bias free. The research needs to remain important and abide by the rules of ethics while conducting the research, colleting data, analyzing and interpreting it as well as while presenting it and putting forth the conclusion (Lord , R.G ., De Vader , C.L ., & Alliger , G.M . (1996 . pp . 402-410).

Limitations faced while doing study for the topic:

There will tend to be limitations which will have to be faced when the secondary data will be used to collect information since there is hardly any information that tends to be accessible easily. Even sites on the internet are very cautious today and do not let everyone scan the data. Secondary data should be collected soon as there can be some drawbacks such as the matter is irrelevant or accuracy is a problem. (Gershenoff , A. G ., & Foti , R. J . (2003) . pp170 - 196). It always can't meet the requirements that is the aim and also the objective for which the study is undertaken. Due to the topic being a study on global scenario the information will not be accessed easily.


This research work deals with the study the global skills that are required by multinational organizations to manage the employees. In addition to that, through this research work it is intended that a study of the strategies and techniques that leaders follow to manage teams effectively in multinational organizations will be conducted. This will also lead to the study of the competition that exists at global level and also highlight the various training that are conducted by multination organizations in order to aid the managers of a multinational organization to manage the team. Through this research work, it is also intended to be studied about the aspects in multinational organizations that demand improvement and innovation. This also leads to the identification of the advantages of having an effective leader in multinational organizations. Though this research work, the primary aim that is intended to be highlighted is the fact that various skills required by leaders to manage a diverse workforce in multinational organizations.