Contingency Theory and Global Leadership JUST HOW APT

Contingency Theory Emphasizes

Problems and Issues in Global Situations

The contingency theory of leadership fits the leader to the situation (Northouse, 2012). It tests his effectiveness on the basis of his style, hence, the term "contingency." Three factors characterize the theory, namely leader-member relations, task structure, and position power (Northouse). This current environment of globalization endows leaders with a host of benefits (Cantoria, 2012). Among these are the means for empowerment, implementing peace-keeping activities, humanitarian missions, socio-economic initiatives and expanded foreign trade. These are enhanced and supported by advances in communication technology and easy accessibility to information, which are advantageous to the world markets. The introduction of global virtual teams is another boon in reducing costs of travel and relocation. In addition, such teams enable an exchange of insights into responses and behaviors in cross-cultures. Observing the laws of other countries also allows leaders and other people to better understand the meaning and significance of these laws in relation to theirs (Cantoria).

Two leadership styles are inferred within the Contingency Theory, namely the task-motivated and relationship-motivated styles (Northhouse, 2013 as qtd by PSU, 2014). Task-motivated leaders are in pursuit of a goal, while relationship-motivated leaders prioritize the formation and maintenance of relationships. The situations they deal with focus on leader-member relations, task structure, and position power. In sum, the theory seeks a leader who can effectively handle specific situations (PSU).

Problems, Issues

These exceed the traditional and routine boundaries of onsite settings that a leader and his team are accustomed to (Cantoria, 2012). The application of the theory in global situations, however, confronts a new set of problems and issues. The situation demands that the leader should possess the competence of a universal thinker and performer who must consider the loss of boundaries in analyzing the problem or issue. These main problems and issues are cultural differences, communication gaps, diverse goals, absence of trust, and lack of training disciplines for team work (Cantoria).

Cultural differences require that a leader who applies the contingency theory should be knowledgeable in other cultures and their influences (Cantoria, 2012). He should also be able to discern and distinguish acquired personality traits from those developed from upbringing. Findings of studies conducted by Evka Razvigorova and Gottfried Wolf-Lauden found that 70% of cross-cultural business failures was due to cultural differences, mainly the behavior patterns of managers or business leaders. These behavior patterns are mainly extroversion and introversion. Some cultural differences he must deal with are family values of trust in a relationship, body language, and attitude towards time and time pressure. Communication gaps consist in a leader's lack of skill in determining the right communication style and technological tools needed for it. This deficiency can be a strong deterrent to productive and cooperative networking and other processes. Team members judge the competence of their leader through his communication method and means. The lack of a shared or unified goal often leads to differences in perception because of diverse cultures. The only approach to this is to motivate all the team members to take on a participative perspective. The absence of trust can be addressed by imparting the value and culture of team work online in order to build trust among members. And the lack of training disciplines for team work is slowly getting overcome by actually working as a team and relying on their separate cross-cultural competencies (Cantoria).

II. Approaches/Solutions

Cultural differences may be addressed by recognizing and respecting family values of other countries in order to win their trust and build a harmonious relationship with them (Cantoria, 2012). A leader should be sensitive to the body language of peoples of other cultures in order to show and gain their respect. A global leader should also understand other cultures' attitude towards time and punctuality and their tendency to mix work with fun. Tardiness is not necessarily a personal trait in other cultures. It may be the consequence of a collective cultural habit and tendency to come late to official events. A leader should be able to discern this. Communication gaps may be closed if the global team leader by collecting and collating divergent competencies in order to bridge cultural barriers, time and distance. He should be able to discern the correct communication style and technology in order to win or retain the trust of global tea members. Trust is inherent in productive networking and in implementing other development processes. His communication skills and style also contribute a great deal to closing the communication gap. He should be well-motivated or charismatic, exude moral values, emotionally intelligent towards cultural differences, and sensitive to their voice intonation, volume and even silence. The lack or absence of a shared goal can be managed if the global leader overcomes...

This further leads to disagreement and separateness and ideas may overlap or become redundant. The leader should encourage team members to be more participative so that they can become better aware of the values of different cultures. The lack of trust cannot be managed automatically. Building trust begins on a personal level. Collaborating online leads team members to behave properly and do their best. Learning the culture of team work can eventually build trust among the members. This, in turn, can induce them to collectively attain and merge their divergent cultural competencies. And the lack of training disciplines on team work is a consequence of a host of collective efforts coming from different locations and cross-cultural in character. Providing training will cover the open-ended operational boundaries by leading the members to share information and common responsibilities. These responsibilities include securing data, observing privacy policies, and complying with pertinent territorial laws covering the transmission and receipt of data (Cantoria).
III. Personal Experience of a Leadership

The orderly, efficient and friendly environment in our purely online work illustrates the effective use of this theory. Our team consists of writers from different states and countries bound together by rules governing writing and research. Our leader and/or his administrative assistant tackle problem situations professionally, promptly, accurately and fairly. The basis of conflicts with customers is always the written instruction for paper assignments. Tardiness, error, plagiarism or any other professional or legal violations are effectively handled as separate situations. Solutions are drawn from specific circumstances and almost always work for both sides.

IV. Contemporary World Business Leaders Who Applied the Theory

President Jack Stahl of Coca-Cola between 1978 and 2000 and CEO of Revlon draws his very successful career from the expertise he inherited from his mentor Doug Ivester (Nayab, 2011). This is the blending of high-level oversight with scrutiny of details and a hands-on approach, when it became necessary. Bob Diamond had greater confidence in his own capability and luck than on any support or provision from the government. He remained tough, competitive, uncompromising and aggressive. But he took calculated risks and with caution. His formula paid off when his company, Barclays, survived the credit crisis of his time without help from the government. James Parker chose the leadership-by-values approach in his company, Southwest. His approach put customers first in any situation. This formula transformed all crises into opportunities for him many times. Southwest has been known to perform in crisis better than any other airline. Bill Gates, founder of Microsoft, leaned towards participative leadership and the empowerment of his subordinates. His company's sway remains today despite severe competition in the field. Gates invested in the power of innovation and subordinate empowerment in gaining leadership in products, process and markets. Microsoft's platform is for its people to build and sustain their strengths (Nayab).

V. Specific Applications of this Theory and Its Effectiveness

A global leader can apply this theory in highly specific ways and situations. He should initiate regular communication with the team or among team members. Connection should never break. He should encourage feedback, no matter how seemingly trifling, in the immediate moment and everyone should react to the feedback to build openness and the transmission of maximum inputs. These feedbacks shall be both in verbal and written form and circulated among all members online. The leader evaluates the feedback and shares his evaluation with all of them. Whenever possible, he holds face-to-face meetings with those present and connects online with those offsite. Feedback includes problems and issues, suggestions and mere sharing of experience and observation. Every end of the week, he asks all members to evaluate their own performance and those of others, including his own. #

BIBLIOGRAPHY

Cantoria, C.S. (2012). Becomig a more global leader: common problems and issues.

Bright Hub PM: Bright Hub, Inc. Retrieved on December 10, 2014 from http://www.brighthubpm.com/resource-management/118511-becoming-a-more-global-leader-common-problems-and-issues

Nayab, N. (2011). Five real-=world examples of successful leadership. Bright Hub PM:

Bright Hub, Inc. Retrieved on December 10, 2014 from http://www.brighthubpm.com/resource-management/120498-five-real-world-examples-of-successful-leadership

Northouse, P.G. (2012). Leadership: theory and practice. Kindle edition. Sage Publications

PSU (2014). Applying the contingency theory to global leadership. Pennsylvania State

University. Retrieved on December 10, 2014 from http://www.sites.psu.edu/2013/02/14/pplying-the-contingency-theory-to-global-leadership

Contingency Theory Emphasizes

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VI. Problems and Issues in Global Situations

. Contingency theory is a leader -- match theory (Fiedler & Chemers,…