Markets of all types have become sharper and less forgiving in recent years. If a manager or

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Markets of all types have become sharper and less forgiving in recent years. If a manager or their organisation gets something wrong, news of it spreads like wildfire on social media. An organisation's reputation is only as good as its weakest element. For example, when an organisation underperforms its financial forecasts, investors punish it and share prices plummet. When it fails to deliver up to customer expectations, bad news spreads fast across the internet and negative publicity ensues. When employees are not treated well such as when they are underpaid or mistreated, then the organisation's reputation suffers significantly. Going forward, levels of accountability of organisational leaders and managers to their stakeholders are rising in the recent Royal Commission into financial services in Australia, board chairs and CEOs of some major companies 'fell on their swords' because they led organisations that clearly compromised on any reasonable standard of honesty and integrity. Social media went ballistic on these matters and crucified' these leaders and their organisations. In the future, managers wil be held accountable at high levels for the dally operating performance of their organisations, as well as their strategic initiatives, technology choices and indeed all their decisions. More and more, being a manager will be like swimming in a glass goldfish bowl, with many stakeholders looking in, criticising and trying to exercise pressure. For those who get it right, rewards of all types will be great, and conversely for those who slip up, stakeholders will be increasingly unforgiving. We see start-ups that are successful leading very young entrepreneurs to be very wealthy, and we also see how far business leaders can fall and how easily investors can lose their equity when poor choices are made, in the new era of transparency. A new aspect of technology is that managers must be the management of their public face because everyone carries a phone-camera these days and is willing to use it and post the results of errors or problems that any organisation creates, small or large. If an organisation gets a thousand things right today in its transactions with customers or employees, and just one thing wrong, which of these will be spread across the internet? This new technology poses a challenge for the modem leader: she cannot personally supervise the thousands and perhaps millions of transactions that occur every day, but is ultimately responsible for them, and accountable to many stakeholders for the actions of many colleagues and other employees. This is the crux of where effective leadership meets today's technology challenges: where we must trust others to be capable and ethical yet measure and control their work outcomes. Good leaders effect a balance between using and motivating human skils with technological opportunities. They combine the introduction of innovations with stable control over daily operation. They can effectively plot a strategic course of actions that will maximise the net benefits and minimise the risks of engaging with social media and using other technologies such as artificial intelligence. They can stimulate customers interest and purchases, and keep employees motivated. Question What leadership qualities will leaders of the future need to navigate the complex circumstances going forward, and which qualities will they need to instil in their organisations, especially in the light of fast-changing technologies?

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Management

ISBN: 9780324317985

7th Edition

Authors: Richard L. Daft

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