1. the leadership style in transitional economies

1. Leadership Development in Transitional Economies. Characteristics, Prevalent Models 2. Is Executive Coaching a Viable Option? What is Executive Coaching? Performance Issues, Pros/Cons. 3. Cultural Obstacles For Executive Coaching in Transitional Economies 4. Executive Coaching and Organizational Benefits in Transitional Economies 1. It has been proven that the leadership quality is one of the most important factors to determine the success of an enterprise. By definition, leadership can be defined as a process by which an individual influences the other persons in order to accomplish pre-defined objectives.

Consequently, a successful company cannot exist without skillful leadership as well as the induction of employees’ high motivation and engagement. So in these conditions, how should the leadership style look like to be able to determine the highest level of enterprise development? Recent researches show that the contemporary leader is based on the supportive leadership style which is characterized by the leaders’ concern for their subordinates’ well being as well as their personal needs.

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The leadership style is friendly, approachable, and supportive and this induces highest possible involvement of all the employees in attaining the company’s objectives. Are all management environments characterized by this leadership style? Other recent researches try to determine if the leadership style in transitional economies shows the same pattern of evolution and whether its characteristics, which are proved to be somewhat different from the ones found in developed countries, contribute to a high level of entrepreneurial success.

For example, a study1 performed in Bosnia and Herzegovina (research conducted on 73 out of 658 small enterprises of the region) established that the type of management style used by the local entrepreneurs is the “soft” form of authoritative leadership style, containing a significant amount of the consultative style characteristics (Likert model defines four types of leadership styles: 1. Exploitative-authoritative 2. Benevolent- authoritative 3.

Consultative 4. Participative). The hybrid authoritative leadership style characteristics found are: objectives- defined through directives, with the responsibility of implementation concentrated at top; decisions- concentrated at top; motivation0 fear, threats and punishments still dominate as instruments of motivation, participation being virtually non-existant; control- concetrated at the top and implemented mainly for the purpose of managing the enterprise.

The hybrid consultative leadership style characteristics found are: teamwork- significantlly represented, which can be attributed to the size of the surveyed companies; communication- in all directions, due to the size of the surveyed companies; resistence toward enterprise objectives; rules- minor; practically non-existent. In another study2 conducted in Russia (Central Russia survey during 1997 and 1998 cunducted on 42 and 16 CEOs and 69 managers respectively) the author concludes on the progressive destruction of the national managerial archetype, progressively losing its credibility and seen as more and more unsuited in the new economy.

The new ideal CEO is characterized as a though, strong “financier”, able to build a team of top to middle managers but lacking the ability to address the human aspect of the business (or the supportive/participative leadership style). The Russian industrial CEOs are still unable to enforce power at each and every level of organization and thus deprive managers from basic rights in administering the business. Apathy is one of the results, spreading from middle managers downwards to workers.

In the new economic development, the research finds that some of the most important qualities asked of a CEO are: decision making ability, financial knowledge, and ability to evaluate subordinates’ performance and last, training skills. It is interesting to note that one of the survey results is that neither executives nor their subordinates (managers and workers) expect to receive any coaching or mentoring from CEOs (! ).