Leadership is a process of social influence in which one person can sign up and support others in achieving a common goal. Leaders have followers who listen and obey them. A leader must have integrity and humility to be able to be surrounded with people who are encouraged by him or her and who can give respect and support for the leader,(Daft,S.,2002).
The trait model of leadership is based on the characteristics leaders are born. It is used to forecast leadership effectiveness. The resulting lists of traits are then compared to those of potential leaders to assess their likelihood of success or failure. The trait approach points out physiological which includes appearance, height, and weight and, demographic which includes age, education and socioeconomic background and, personality, self-confidence, and aggressiveness. Intellectual ability including intelligence, decisiveness, judgment, and knowledge and , task-related including achievement drive, initiative, and persistence, and social characteristics including sociability and cooperativeness .Successful leaders have interests, abilities, and personality traits that are different from those of the less effective leaders.
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Important leadership skills include, getting and giving information , understanding group needs and characteristics , knowing and understanding group resources, controlling the group, counseling, setting the example, representing the group , planning , evaluation , sharing leadership ,(Daft,S.,2002).
The leadership behavior is linked with the use of authority. Characteristics of effective leadership behavior is the ability of the leader to influence the activities of a group, by initiating structures such as goal setting, which enable the group to successfully overcome mutual problems and to achieve their group goals. The leadership behavior exhibited by leaders may or may not reflect their personalities, (Arbinger, L. ,2002).
There are five important attitudes leaders need to show. These are, positivity, purpose, empathy and compassion, humility and love,(Daft,S.,2002).
A business leader must be able to effectively communicate ideas to the right people and understand their unique needs and wants. Leadership is also about providing value to people. For example If your main competitors are all providing a better quality and lower priced product than yours, you should provide different benefits such as speed, convenience, better service; lower your price and improve quality and create a different product for an unmet demand.
A successful leader must always maintain a neat and tidy appearance, intelligent while making quick decisions and be socially active and commanding. This will help him to attract more followers,(Daft,S.,2002).
LEADERSHIP CONCEPTS IN SMALL PRIVATE BUSINESS VERSUS LEARGE SIZED PUBLIC BUSINESS.
Anyone can be a leader, even if the only person they're leading is themselves. Strong, effective leadership is important in all business. All leaders need to stay calm in difficult situations, farseeing, brave, able to think and act and direct the activities of others for the benefit of all,( Arbinger, L. ,2002).
TWO SMALL PRIVATE BUSINESS LEADERS IN NEW ZEALAND
Two Dollar Plus is a small private business which operates in Otahuhu, Auckland is run by Manjit Singh.
Chaska Punjab is Indian restaurant and is operated by Chaska Singh, based in Atkinson Avenue , Otahuhu,Auckland .
SMALL PRIVATE BUSINESS LEADERSHIP
Small businesses need business do not employ many people. In this business the leader acts in despotic style because he works alone to achieve his business goal. The leader sets the target for his private business and he has to change himself into the kind of leader his small business needs. For him core of business leadership is being proactive rather than reactive. He has to identify problems and solve before they reach crisis magnitude. For this leader his customers and the law of the country are important because his decisions are influenced them. The leader has a personal vision which gives guidelines to achieve dreams. In small private business, leader takes charge of his business alone,(Daft,S.,2002).
LEADERSHIP CONCEPTS IN LARGE SIZED PUBLIC BUSINESS
Large public organizations are built around under the vision and able guidance of one or more leaders. In such organizations, success or failure depends on how effective the leadership is. In this type of business leaders practice democratic style and leaders role is based on employee requirements. However the leader has a clear vision and if he/she treats their employees well and is able to gain their trust and loyalty, then the business does well. If there are internal wars then the leadership is not effective and employees start taking sides based on who they favour. In such situations, unless one person is able to emerge the clear leader and assume control, the company suffers terribly. Leadership is more formal and fully structured. Activities are pre-planned and employees work according to the plan to achieve objective of the organization. Vision, values, norms, initiatives, systems and processes, as well as management practices are used to engage employees, satisfy customers, and ultimately lead to high performance that has to be continuous overtime,( Arbinger, L. ,2002).
TWO LARGE SIZED BUSINESS LEADERS AND ORGANIZATION IN NEW ZEALAND
Always on Time
Marked to Standard
Sir Stephen Tindall CEO and Managing Director of The Warehouse currently with one of the largest number of branches in New Zealand
Russell Stanners, CEO of Vodafone New Zealand
LEADERSHIP CONCEPTS IN FOR PROFIT BUSINESS
In a for profit business leader aims to encourage employees to reach a set target through enticement such as pay rise or bonuses. The main purpose of business is make extra profits. so the Leader's style and methods concentrate on how to make the team members contribute towards this goal and the yard sticks for measurement would center around profits . The leadership style change in an organization where the last but one quarter results show a declining trend which is not acceptable to the Leader. The Leader will easily assume a totalitarian role, (Daft, S.,2002).
There are several Business Leaders who say that their style is to first build trust in their employees. For example, they have successfully tried open kind of salary discussions with the potential employees either asking them to quote their own salaries or asking them to decide a group salary pattern in an open interview. These attempts very clearly point out a very different Leadership approach even within for profit organizations, mainly because the leaders want to modify their styles to suit the business needs. Other emerging leadership methods include compassion. Many for- profit organization leaders, are setting up Charity Trusts or Foundations and transfer certain percentage of profits every year to help the society,(Daft,S.,2002).
LEADERSHIP CONCEPTS IN PROFIT VERSUS NOT FOR PROFIT BUSINESS
All leaders need leadership qualities, skills and ability to lead a team so that they can increase the performance of their employees to achieve pre-set goal of business. I personally believe there exists a major difference in the leadership styles of individual leader depending on the Leader's own personal traits and qualities , influences the leader's own work areas,( Chemer, M., 1997) .
TWO FOR PROFIT BUSINESS LEADERS AND ORGANIZATION IN NEW ZEALAND
1.Kevin Kenrick new CEO of Television New Zealand He is a well-known business figure who has held a number of significant roles in some of New Zealand's largest companies, including Lion Nathan, Telecom, and most recently, House of Travel.
2. Ian Walker the chairman of Farmers Stores in New Zealand,.
LEADERSHIP CONCEPTS IN NOT FOR PROFIT BUSINESS
The Leadership style and methods in a not -for profit business reflects the specific objectives of the organization. For example, in an organization whose objectives are to serve people of the country below the poverty line undertaking humanitarian projects, the leader needs to have a style which will encourage team members to be more human and kind while serving on the projects. The leadership methods for measuring the employee contribution and results would also differ in nature. Leader's style would have an extra dosage of a human value touch. The leader will take servant leadership style. The leader would be more concerned with whether the ultimate customer has really been benefitted by the project. On - profit leaders, especially if they also founded the organization, fill a very important role in the life of the organization. They have been the public face of the organization and have built trusting relationships with donors and the community in general. Their passion has been the source of inspiration for other staff members, volunteers, and constituents. When they retire or must leave for health or personal reasons, the organization that lacks a plan for succession may face a crisis. For these reasons, non-profits should have succession policies in place to facilitate a smooth transition.Team members are not paid but they are motivated to gain respect, improve interpersonal skills and self-actualization. In addition to these skills which are very important for the progress of a not - for - profit organization, leadership in successful not - for - profit organization is more supporting and place emphasis on team collaboration
TWO EXAMPLES OF NOT FOR PROFIT BUSINESS
Red Cross Society of New Zealand
1. Mr D. G. Whyte is national chairman of the New Zealand Red Cross Society, . He visited christchurch when the city centre was recently shaken by an earthquake.
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2. Kelsey Fletcher- leader of Greenpeace campaign that took to the air, land and water to protest to tuna fishing and also attacking New Zealand businesses.
LEADERSHIP IN RELATION TO SOCIAL RESPONSIBILITY
Leadership plays a pivotal role in initiating and developing corporate social responsibility and initiatives within and across organization. Inkson and Kolb,(2002) state responsible leaders are defined as people of the highest integrity and deep understanding of difficult concepts such as sustainable development, committed to building enduring organizations in association with others, leaders who have a deep sense of purpose and are true to their core values. Leaders of socially responsible organizations have been associated with the charismatic leadership style. The success is attributed to leader's restless focus on clients, continuous communication of values and beliefs, a large amount of engaging with others, accountability and as well as a long term perspective. Leaders such as William Wilburforce and Martin Luther king risked their life while serving for humanity.
LEADERSHIP IN RELATION TO BUSINESS SOCIAL RESPONSIBILITY
Businesses can use ethical decision making to secure their businesses by making decisions that allow for government agencies to minimize their involvement with the corporation. Emissions of dangerous pollutants are minimized and leaders even get involved in the community and address concerns that the public might have for surroundings. For example businesses donated money for victims of natural disaster to gain respect and recognition of the public,(Daft,S.,2002).
COMPANY SOCIALLY RESPONSIBLE
Pack 'N Save does not pack items in plastic bags to protect the environment because plastic is non-biodegradable
ETHICS IN LEADERSHIP
Ethics refer to the desirable and appropriate values and morals according to an individual or the society at large. Ethical theories on leadership talk about two main things. Firstly the actions and behavior of leaders and secondly the personality and character of leaders. A leader drives and influences the followers to achieve a common goal.. It is an ethical job of the leader to treat his followers with respect as each of them has unique personality. The ethical environment in an organization is built and developed by a leader as they have an influential role in the organization and due to the fact that leaders have an influence in developing the organizational values.Wilson, J. (2010)
TWO EXAMPLES OF ETHICS IN LEADERS
1. Peter Clare is the CEO of Westpac NZ. He is involved in various leadership seminars and training programs. He is in a position of social power, ethical leadership focuses on how leaders use their social power in the decisions they make, actions they engage in and ways they influence others.
2. Mike Robertson the leader of TV one news presenter is respectful and honest person who takes risk and goes to dangerous places to collect news for the listeners. For example he went to Christchurch to help and give news during the earthquake disaster.
2. Leaders who are ethical demonstrate a level of integrity that is important for stimulating a sense of leader trustworthiness, which is important for followers to accept the vision of the leader
TWO EXAMPLES OF UNETHICAL LEADERS
1. John Brash former leader of National Party. This leader has had a negative impact on society as he had secret affair with coworker while he was leading the party as leader of opposition. He left his position as he had done wrong.
2. Verpal Singh who is the secretary of Sikh Council of New Zealand has had negative impact was linked to alleged voter fraud in South Auckland.
Stakeholders in a business are any entity that is affected by the operations of that business in some way. The most obvious stakeholders are employees, owners, and customers. Indirect stakeholders are competitors, the neighborhood the business is in, the government, and the environment.
RESPONSIBILITY TO STAKEHOLDERS.
An ethical leader should not use his employees to achieve their personal goals. He should respect their feelings, decision and values. Respecting them implies listening effectively to them, being sympathetic to them, as well as being broadminded in hearing opposing viewpoints. He treats the employees in a manner that show his values and beliefs. There should be no personal bias. Wherever some employees are treated differently, the ground for differential treatment should be fair, clear, and built on morality.
LEADERSHIPS IMPACTS ON THE SOCIETY
Leaders excel by bringing out the best in people and aligning their talents with the goals of the organization.. Leaders have a major influence on their followers and they have to gain their followers respect. Leaders have to be able to envision the future and gain the trust of others. In order for a leader to be successful it is important for them to be willing to change and to help their followers to embrace change as well.