1.

Challenges to Effective Corporate Leadership

Exam Q: Explain and discuss some of the challenges faced for
effectiveness of corporate Leadership
Every leader will have challenges, because it's not always easy to work
through others to get the results you need.
Following are the challenges faced by leaders for effectiveness of corporate
leadership:
I.
II.
III.
IV.
V.
I.

Globalization
Climate Change
Demographic Shifts
Individualizations
Technology Convergence
Globalization
As globalization accelerates, the new business world will be characterized
by increasingly diverse teams and declining loyalty between organizations
and employees.
Companies will need to be more alert and collaborative to manage the
global/local divide
Their leaders will need to be flexible, internationally mobile and culturally
sensitive, and they must have strong conceptual and strategic thinking
capabilities in order to manage risk and cope with the dangers and
uncertainties associated with globalization.

II.

Climate Change
The scarcity of strategic resources like water, minerals and fossil fuels could
trigger price hikes and operational costs.
Organizations will be forced to lower their eco-footprint, adapt to rising
operational costs and restructure along sustainable lines.
Leaders will need outstanding cognitive skills to balance the competing
demands of financial success, social responsibility and environmental
custodianship, and must act as change agents, advocating environmentally
responsible business practices.

Chapter # 1 Exam Notes

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III.

Demographic Shifts
The aging population means demographic imbalances are rapidly emerging,
leading to skills shortages.
For organizations, this means the war for talent will continue to rage.
Leaders will need to attract, motivate and retain increasingly diverse teams
and find ways to develop and promote the growing numbers of
international migrants, women and older people into leadership positions.

IV.

Individualizations
Careers are an important part of peoples quest for self-expression.
But their loyalty is more likely to be directed toward social networks than
employers.
These trends have a huge impact on how leaders and companies motivate
people.
Leaders will have to work harder at generating personal loyalty, through
accommodating employees requirements, enabling self-directed ways of
working and individualized leadership by developing relationships beyond
the direct work environment.

V.

Technology Convergence
Ignore troublemaking technologies at your peril.
Despite their lack of detailed knowledge, leaders must be open to and
advocates of visionary ideas.
They must encourage innovation and collaboration and act as orchestrators
of expertise from within and outside the organization in order to control
the potential of converging technologies.

Chapter # 1 Exam Notes

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