The Effects of Leadership in a Crisis
The current financial and economic crisis leaves deep traces within communities. It is not just a wave of economic downturn, as in previous economic crises. There is more to it; this crisis is accompanied by a loss of confidence in our financial systems and institutions. The financial base of U.S. and Western banks and pension funds is shaky. The United States and the countries of the European Union have huge state debts. Trust in government and public finances has decreased. Politicians are preoccupied with the question of how trust in government can be restored. Trust in custody bearers and custodians authority ...view middle of the document...
This concludes with a review of the presented model and leadership conclusions about the roads that are open to the leader a way to search uncertainty (Kash & Darling, 1998).
The cognitive ability of a leader of the team contributes to the development only when the leader performs management approaches. When leaders are good at planning and decision making in ensuring that their plans are implemented, these leaders tell people what to do, which is better than if they had hopes of reaching an agreement with the team. When a leader is no better than members of their team, then a non-directive approach is preferable. For example, when team members facilitate an open discussion where ideas can be ventilated equipment and the best approach is identified and implemented. Stress affects the relationship between intelligence and the quality of decisions (Fiedler, 2001).
Leadership in crisis usually has two phases. The first stage is to bring order to the chaos by stabilizing the situation and gain time for financial position and market position security. Addressing the underlying causes of the crisis and to accept and handle the new reality occurs in the second phase. This second stage requires a lot of leaders in organizations most likely it will involve leaders from other countries. Many employees in organizations are uncertain about what is going on and have fear of the future. They have seen colleague’s departure. Some know and do not know if the same will happen to them. In some cases, the manager himself fired people and they are now uncertain about their own role and position. Future Images of talented employees are scattered and it is questionable whether there ever will be so much prosperity as in previous periods (Kash & Darling, 1998).
An appeal is done on leaders to perform security and protection in these uncertain times. It is an uncomfortable message for a leader to state that it will never be as it was. People search for certainty and direction, while security is hardly possible. The crisis and the external uncertainties lead to a call for followers in a security nature and they expect leaders that can offer assurance. People look for strong leaders who brought them out of the misery. They believe these people can lead and prevent other issues from arising in a crisis. These calls for inevitability and authority leaders may be tempted to short-term solutions to the current problems. To stabilize a chaotic situation, short-term solutions are useful in the initial phase of crisis management. This form of leadership fits well in the second phase in which it precisely covers the concerns of the new reality to recognize, accept and handle a crisis situation (Mitroff, 2004). Offering protection against external threat is unproductive because the adjustment to the new situation is difficult. This is a new situation, old methods and classical forms of leadership no longer work.
In these uncertain times, it is no...