Sunday, July 28, 2013

“Should Business Leaders and Chief Executives be Elected Democratically?” - Professor M.S.Rao

"Two cheers for democracy: One because it admits variety and two because it permits criticism." - E. M. Forster

With the rising aspirations and expectations of the Gen Y, we need a new leadership style to walk the talk with a flat structure which is free from command-and-control culture. The democratic leadership style appears to be the appropriate one to fill the bill. In this leadership style the leaders discuss with group members to resolve organizational challenges unlike autocratic leadership where leaders make decisions by themselves without consulting others. Additionally, organizations need an innovative approach in democratic leadership style where the democratic leaders are the leaders by the employees, for the employees, and of the employees which can be called organizational leadership style. It seems that the employees are craving for organizational democratic leaders who must treat them as partners rather than subordinates. These organizational democratic leaders must be smart enough to articulate their vision, motivate employees, and treat them as partners. The Gen Y appreciates partnership rather than superior-subordinate relationship. Hence, there is a need for organizational democratic leaders to treat employees as partners to enhance organizational excellence and effectiveness. In this organizational democratic leadership style, the leaders must be approved by the employees rather than nominated by the management. It has both advantages and disadvantages.  The advantage out of this style is that members feel connected and engaged in the decision-making.  The disadvantage out of this style is that leaders must spend more time in keeping their employees in good humor to get elected and ensure their survival rather than focusing on organizational bottom lines which adversely affects the performance and productivity in the long run.

As the world is changing rapidly the people are also changing rapidly craving for new leadership models and styles. Hence, a further research is needed in organizational democratic leadership style to customize as per the current needs to achieve organizational excellence and effectiveness apart from uncorking the human potential and advancing the career growth of the employees. To conclude in the words of Steve Miller, Group Managing Director, Royal Dutch/Shell. "No leader can possibly have all the answers . . . .The actual solutions about how best to meet the challenges of the moment have to be made by the people closest to the action. . . .The leader has to find the way to empower those frontline people, to challenge them, to provide them with the resources they need, and then to hold them accountable. As they struggle with . . . this challenge, the leader becomes their coach, teacher, and facilitator. Change how you define leadership, and you change how you run a company."

“Government of the people, by the people, for the people, shall not perish from the Earth.” - Abraham Lincoln

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maddali swetha said...

Excellent Topic..... It is said that "No leader can possibly have all the answers"

But leader have questions in their mind....that makes them to stand for right decision at right time...that why there are meant for leadership dynamic skills gainers

Blanchard India said...

Organizational change is a fact of business life. New opportunities and business initiatives signal change which can be both exciting and challenging.Regards Organizational Excellence Training