Leadership Effectiveness and Capabilities

Question: Discuss about the Leadership Effectiveness and Capabilities. Answer: Introduction: The ASB Bank in New Zealand was founded in 1847 by the mother company; the Common Wealth Bank of Australia and provides banking and financial services. The organization is guided by the values of integrity, respect, passion and ambition in its quest to achieve profitable growth. The institution offers a broad range of services such as savings accounts, personal loans retirement schemes, business accounts and business insurance products. The ASB bank growth strategies encompass business diversification, creating capacity and adoption of technology in service delivery. ASB CEO Leadership Qualities The ASB Bank chief executive officer; Barbara Chapman displays the qualities of a visionary leader through the adoption of technology in the bank. Barbara pioneered customers communication through social media platforms after data emerged that most people are embracing the use of social media. Additionally, she championed for mobile banking to make it easy for customers to access banking services. Barbara is a courageous leader and informed risk taker (Bergh, 2011). The CEO invested more than $460 million in a new banking computer system and launched 25 branches across the country in anticipation of business growth. The banks chief is optimistic that technology adoption will create capacity for the customers, enabling easier and fast service and grow the organization revenues (Vaughan, 2016). Moreover, the CEO is an ambitious person and leads the team in setting reasonable targets and motivates the members to focus on achieving the goals. Leadership Capabilities in Building Relationship and Trust A leader influences, guides, and direct people in taking certain actions in an attempt to achieve the set goals. However, leadership does not only entail guiding people to common goals but also demands the capability to build healthy relationship and trust among colleagues and followers. An effective leader must have excellent communication skills to persuade and convince people. Successful leaders must communicate clearly to relate their visions to the team (Chuang, 2013). Real leadership must invest in effective communication to motivate the team. Building trust in the workplace demands honesty and trustworthy leaders. Conducting oneself in an honest and ethical manner is a bridge to an effective leadership (Daft, 2014).Followers emulates the behavior of their leader and, thus, to build trust leaders must always tell the truth. Integrity calls for truthfulness all the time irrespective of the situation. Leaders must delegate duties to followers to create trust which is critical for a healthy relationship. Task delegation signals strength and a quality of good leader (Martindale, 2011). Trusting individuals and teams with the responsibility of driving the organization vision will create confidence and good relationship. The teams will share the vision of the company and give the best in duties. Good leaders are humble and approachable. Humility in leadership builds a good and trustable relationship through recognition of other people (Chuang, 2013). Great leaders are humble and appreciate the contribution of others and not taking the credit for everything. Leaders with the capability to suppress their egos are admirable and build trust among followers. An approachable leader gets along with everyone and builds a good relationship. ASB CEO Capabilities in Building Relationship and Trust The ASB bank CEO displays excellent communication skills in her leadership. Barbara communicates the management vision to employees and persuades them towards adopting the goals. The ASB bank has scored highly on management-staff engagement since 2012 (ASB, 2013). During the adoption of technology, the CEO informed people on the potential changes. The group CEO is an honest person and emphasizes on the values of integrity. Barbara engages the employees in a truthful manner and not afraid of talking about potential repercussions of taking certain actions (Parker, 2012).Moreover, Barbara builds confidence in her juniors through delegation of duties. The CEO trusts other executive managers with strategy execution. Transformational Leadership in ASB ASB bank practices transformational leadership. Transformational leadership spurs changes in individuals and social systems and instilling leadership qualities to followers (Garca-Morales, Jimnez-Barrionuevo Gutirrez-Gutirrez, 2012). The leadership enhances employees morale and motivates them to good performance. Transformational leadership develops challenging visions in consultation with the employees and comes up with a strategy to achieve the objectives (Chuang, 2013). Thus, the style inspires employees, instill confidence and express optimism. The ASB CEO came up with the vision to embrace technology in customer services through social media platforms and involved employees in the set-up of a new banking computer system (PricewaterhouseCoopers, 2015). Additionally, the CEO motivates the juniors through delegation of duties and challenges them to take responsibility for the bank's projects execution. Barbara expresses optimism that the bank adoption of technology will yield positive results in service delivery. Strengths and Weakness of Transformational Leadership Transformational leadership mentors and inspires teams to work together to enhance productivity. The style draws more commitment from employees due to a shared organization vision. In the quest to improve production, employees are trained and develop skills to stimulate innovation that benefits the company (Daft, 2014). However, the leadership style permits excessive risk which can be harmful and disruptive to the institution. The style can drive a company into persuading ideas that do not benefit the organization and cause employees burn out due long working hours in an attempt to achieve the goal. Shift from Control-Empowerment Paradigm Contemporary Organizations should move from a paradigm of power to empowering through involving the staffs in the decision-making process on critical changes. Employees should be consulted when the management conceives the vision of the organization (Ali, 2012). The organizations should adopt a transformational leadership that engages the workers through consultation and not coercion. Leaders should involve employees in the planning and evaluation of the companys projects to build trust and create a healthy working environment. Additionally, leaders should delegate duties to staffs to build confidence and give a sense of responsibility for them to make important decisions. ASB Implementation of Control-Empowerment Paradigm The ASB bank can adopt the empowerment paradigm through getting the employees suggestion on critical decisions. Organizations can collect employees opinions through survey and questionnaires (Ali, 2012). Additionally, the company can have employees representatives on the management table to contribute to the decision-making process. The bank can have a policy on employee participation compelling the management to have meetings with all employees when they want to implement significant changes. Moreover, leaders delegating important organization task to employees is the greatest route to empowerment. The employees will be responsible for the projects and exercise control for the success of the projects, hence, Instilling confidence and trust. Possible ASB employees Reactions Embracing empowerment paradigm will give employees a voice on the organization's decision. Thus, ASB bank employees might respond to the changes with a positive vision (Wittig, 2012). The employees will be aware that empowerment is good for their welfare and thus will appreciate the changes and have trust with the organization leadership. Furthermore, the employees might react with enthusiasm eager to face the new challenges of decision-making. Personal Leadership Style Democratic leadership My take on Leadership is the ability to guide and motivate people to work towards a common goal on their volition through consultation. I would love to acquire the capabilities of a democratic leadership style. This leadership style will enable me to create a harmonious environment for my followers. My Strengths I am a good communicator. I am able to clearly communicate my argument through writing and speech. I have very strong persuasive nature through facts and tend to convince people to adopt my thinking. I am a good turn taker and give people time to express themselves. I hear, listen and observe non-verbal ques to respond effectively. Democratic leadership involves discussion and building consensus with other parties (Woods, 2004). The ability to listen and comprehend other people point of views will put me in a good position to embrace what I do not know and evaluate the suitability of the decision. Additionally, good communication will help me persuade the disgruntled parties to accept my stand which I perceive as effective. I am very co-operative and committed. I dedicate myself towards the achieving of an agreement. I am a team player and interact well with people during team duties. I give my best to ensure success of a group task. Democratic leaders should have the ability to hono r an agreement and stick to it. Being able to accept and commit to the actualization of a decision is an added advantage. This personality would make me a good democratic leader through committing myself to the negotiation process and the overall outcome in the consensus. I am respectful and humble. I respect peoples views irrespective of the situation whether positive or negative. Additionally, I recognized the value of everyones contribution and not perceive myself to know everything. I always acknowledge where I went wrong and apologize. Democracy involves receiving different views of people at the bargaining table and the ability to stomach differing views is critical for this leadership style (Woods, 2004). These traits would help me accommodate varied reactions and be confident and humble. I will ready to learn from others and apologize for any wrong. I am honest and truthful. I am a person of integrity and tell the truth regardless of the consequences. I value other people an d act in a way that benefits them. Successful democratic leadership would entail being truthful at the negotiation table. Democracy demands openness with information and motives, and this would position me at good leadership position as I always act in good faith and integrity. My Weakness I am a very impatient person. I always want instant results to various actions. I am bored by lengthy meetings and delayed decisions. Democracy entails negotiation and listening to every person point of view which would take a lot of time. Being impatient would put me in a tough situation as I would love to make fast decisions that would mean I ignore other peoples concerns. The negotiation process would go for days and months and thus, would demand patience so as not to compromise negotiations and the final decision. Capability to Develop Throughout the course, I would love to develop the ability to delegate duties and trusting on others to do a good job. Being able to assign important responsibility to other people bestows confidence and indicates a strong leader. I will try to let my colleagues handle some key personal duties that mean a lot to me. Additionally, I will take the responsibility of sharing different class task to friends and learn how to trust people. References Ali, A. (2012). Significance of Paradigm Shift from" Management to Leadership"-A Review of Literature. International Journal of Academic Research in Business and Social Sciences, 2(10), 499. ASB (2013, September 16). Experience the Future of Banking with the ASB Innovation Lab. Retrieved August 30, 2016, from https://blog.asb.co.nz/posts/2013/09/experience-the-future-of-banking-with-the-asb-innovation-lab.html Bergh, R. (2011, June 7). The Woman Taking ASB Beyond Goldstein. Retrieved from https://www.stuff.co.nz/business/industries/5240946/The-woman-taking-ASB-beyond-Goldstein Chuang, S. F. (2013). Essential Skills for Leadership Effectiveness in diverse Workplace Development. Online Journal for Workforce Education and Development, 6(1), 5. Daft, R. L. (2014). The Leadership Experience. Cengage Learning. Garca-Morales, V. J., Jimnez-Barrionuevo, M. M., Gutirrez-Gutirrez, L. (2012). Transformational Leadership Influence on Organizational Performance Through Organizational Learning and Innovation. Journal of Business Research, 65(7), 1040-1050. Martindale, N. (2011). Leadership styles: How to handle the different personas. Strategic Communication Management, 15(8), 32-35. Parker, T. (2012, December 13). Business Leader of the Year Finalist: Barbara Chapman. Retrieved from https://www.nzherald.co.nz/business/news/article.cfm?c_id=3objectid=10853705 PricewaterhouseCoopers (2015, August 11). Barbara Chapman: NZ CEO Interview. Retrieved August 30, 2016, from https://www.pwc.co.nz/nz-ceo-survey-2015/ceo-interviews/barbara-chapman/ Vaughan, G. (2016, February 11). ASB, CBA CEOs Barbara Chapman Ian Narev Sanguine about Turmoil in Global Financial Markets; Narev Suggests over Reaction also a Threat. Retrieved from https://www.interest.co.nz/business/79938/asb-cba-ceos-barbara-chapman-ian-narev-sanguine-about-turmoil-global-financial Wittig, C. (2012). Employees Reactions to Organizational Change. OD Practitioner, 44(2), 23-28. Woods, P. A. (2004). Democratic Leadership: Drawing Distinctions with Distributed Leadership. International journal of Leadership in Education, 7(1), 3-26.