Efficient and effective leadership is considered a means by which the various challenges that face organizations are countered. With a view to effecting more positive outcomes, organizations constantly change their leadership and leadership strategies. The success and the shortcomings of any organization are always ascribed to the leadership of the organization just as the rise and fall are (Ray, 2012). This is because leaders are described as an individual or a group of individuals who functions to select, equip, and influence subordinates in possession of varied talents, capabilities, and skills focusing these subordinates on the goals of the organization. This paper is a report on managerial leadership strategy for the Bank of New Zealand (BNZ).
The purpose of this report is to come up with an appropriate managerial leadership strategy that can be used by BNZ in day to day activities and also in change management goals for efficient performance. This report begins with an analysis of the role and significance of leadership in modern-day businesses. The report is limited to how leadership is important to the Bank of New Zealand. The scope of the report is choosing and applying a leadership model that can be used by managers of the Bank of New Zealand to lead others in the implementation of the scheduled activities of the BNZ. The report then delves into the application of a leadership model that will facilitate the achieving of management goals. A leadership model will be defined and the rationale for choice discussed.
Task 1: Leadership in modern business
In modern business, leadership is defined as the process through which an executive directs, guides, and influences the mannerisms and the tasks of fellow workers aimed at accomplishing particular goals of the organization. The importance of leadership in modern organizations includes; causing processes which entail recognizing good ideas, supporting the ideas and showing the willingness to implement these ideas despite the challenges. Leadership allows team effort and facilitates support for employees working on a project. Leadership is significant in modelling paths through setting examples (Radmila et al., 2011). Leadership also helps in the motivation of employees by use of emotion that creates a winning ambience and zeal within an organization environment.
Leaders in the Bank of New Zealand abbreviated as BNZ are important since they comprehend and have the ability to interpret the banking environments, therefore, can take advantage of opportunities and take action in averting threats (BNZ, 2018). Managers in BNZ design winning strategies for the bank, implement the designed strategies brilliantly and observe the outcomes. Since BNZ is comprised of management, time people, and roles, the leadership process is integrated into the overall management as it is the interrelation of these elements. Leadership is the management functionality focused on a constant exploration of the best methods by which subordinates can be influenced to achieve goals (Oa & Me, 2015).
Management being the body of leadership is a determinant of policies, directions, and measures that guide interactions and activities in BNZ which in turn determines the efficiency of the performance. The leadership process supports the business with an efficient and effective performance by enacting policies that motivate the employees to put more effort. It also ensures that the banking business is well understood by every employee which makes it easier to undertake any banking activity. The examples of effective and efficient performance undertaken by BNZ include; automation of banking operations, ease of customer access to the banking services, and fastness of services and bigger lines are no longer seen in the bank. This has increased the bank’s return on average assets and non-interest costs (Jaouadi & Zorgui, 2014).
Lead others to implement change
The selected leadership model for this report is Hersey’s situational leadership model. This model will work since employees will be motivated to perform to their best as this will bring them profitability. This will consequently result in increased performance and thus productivity of the bank. As Northouse (2017) contends, a good leadership style is one which ensures that the subordinates will always be committed to their supervisors. It will also work since it is simple and easy to use, has an intuitive appeal and is flexible which fits well with the dynamic nature of the banking business (Northouse, 2017). This will be used by BNZ’s top executives to lead its over 5000 workers throughout the country. This will enable the banking institution’s leaders to utilize diverse leadership styles dependent on the employees’ advancement level. This model proposes the two aspects of employee readiness which are competency and commitment stages as the major determinants of the style that will be used by the executive. This model provides a framework of direction and support behaviours that managers may display (Hersey et al., 2008). The model contends that effective leadership employs appropriate behaviours at the appropriate time in every employee’s development.
Developing employees who have just started their careers have a high commitment level but exhibit low competency in performance hence BNZ’s managers should be less supportive of them but more directive. As the competency level of employees increases, the managers can then exhibit coaching behaviours. At moderate to high competency stages of employee development, the model recommends supportive behaviours. The model contends that managers should exhibit a delegation approach for workers who have high competency and commitment levels. The activities that managers and top executives of BNZ will lead in their execution include the day to day running of the institution which includes deposits and withdrawals, loans and finances, cards and online payment platforms, forex, insurance, and specialization in various industries.
The situational leadership style is a very popular choice for many organizations in the world (“What Is the Role of the Context?” n.d.). For BNZ, most newly recruited employees could be placed in simpler tasks such as front office management, withdrawals, and deposits and therefore managers within these divisions should be less supportive. Those employees who are involved in loans and finances possess a higher competency level and should be coached and supported by the managers. The employees who are working in specialized industries and foreign exchange in the institution could be highly competent and committed and thus managers should delegate duties unto them. This model will enhance the performance of the employees in the aforementioned areas of the banking institution since every employee understands their role well (Ray, 2012). Those who are less competent will strive to enhance their skills while those at the top of the competence scale will look upon the tutelage of the managers and strive to do the best in their delegated roles.
Selection of leadership model for change
The selected leadership model is the path-goal theory which has a basis on the expectancy theory of motivation which posits the motivation of employees. It is based on employees’ expectations that the efforts they input for the organization signifies great performance, they will get a reward for their performance, and that the expected rewards will be of value to them. The path-goal leadership model suggests that the key activity that managers or leaders should use is to make sure that before enacting any change, the aforementioned expectations are in place within the employees’ domain. Therefore, to create highly sated and performing employees, managers should ensure that the efforts that workers input leads to high performance and ensure that they reward the high performance (“What Is the Role of the Context?” n.d.). By doing this, the leaders ensure a seamless working condition that subordinates will consider motivational.
Further, this leadership model proposes 4 leadership styles whose effectiveness depends on the traits of employees including; skill-levels, inclinations, and accomplishment motivations. The 4 styles proposed are directive, supportive, participative, and achievement-oriented leaders. The directive managers would provide directions to employees. The supportive managers exhibit emotive support to employees. Participative managers ensure that there is employee involvement in key decision-making processes while the achievement-oriented managers set goals for their workers and exhort them to attain them. The biggest advantage of this model is that it gives managers the ability to switch to the most appropriate style in line with the prevailing circumstances (Vecchio et al., 2006).
The change management goals that BNZ plans are a modernization of their banking services by enhancement of their digital proficiency so as to meet the market competitiveness. The other change management plan for BNZ is outsourcing the digitalization of their services from third party companies. In order to change from the current digital platforms that the BNZ’s employees are accustomed to such as the BNZ app, there need to be structural changes in the management since individuals from outside the firm will be brought in to train the employees (BNZ, 2018). This will be a demanding undertaking by BNZ as the employees will be required to undergo training.
The path-goal leadership model will best work for BNZ’s managers since they are the custodians of the planned change management goals (Carnall, 2018). First, the BNZ managers will have the ability to change the model as required by their circumstances. Since many employees might not be wholly interested during the initial stage of the introduction of the new digital systems, the managers should exhibit a directive leadership style where due instructions are given to the employees which will compel them to undertake their roles as required (Tartell, n.d.). Secondly, the participative style of leadership would be appropriate when the reality that the new system has been put in place dawns on the BNZ workers and they will appreciate it when their voices are heard in the decision making processes.
The supportive model is then used as the employees begin having different capabilities in the new system. Some will have already preferred the new system and command good control over the system while others will feel that the change is inappropriate hence emotional support will go a long way in motivating these workers (Ray, 2012). Finally, the managers of BNZ easily employ the achievement-oriented leadership style where employees will have already gained a high ability and levels of motivation and use incentives to encourage the employees by providing guidance, motivating them, coordinating the needs of BNZ and aligning the employee needs.