Contingency Theory
1.0 Introduction:
Tamesak holdings is a big company with great reputation which is confronting a large economic fall, diminish in the company’s investment portfolio and an indefinite leadership. Such problems are consequences of a poor management and an incompetent leadership. Tamesak Holding’s management problem at hand is due an old style of leadership and alternatively should change it towards a better numbers for the company. A leader is best described as a member of a group of two or more people that is tasked with structuring or restructuring of a situation and the perceptions and expectations of the other group members (McLaurin, J.R., 2006). A company without a strong leader giving the goals and orientating the staff is more alike to be instable and to fall. This report will look at the importance of a strong leader leading a company and the need for Tamesak Holdings change its leadership approach from a scientific approach to the application of contingency theory on its leadership style.
2.0 Problem Identification:
The problem that Temasek Holdings is dealing with is about the company’s leadership style. After the global financial crises the company suffered a lot and the value of its investment portfolio felled by more than 30 per cent. The CEO at the time Ho Ching, was too classical in her leadership approach failing to use modern leadership structures like the contingency theory and situational leadership models to predict and avoid changes after the global financial crises. The poor results is easily attributed to the CEO by being incapable to “sense and shape opportunities and threats in the changing institutional environment.” (Day, M. & Dixon, S., 2010). Another example of a company where the leadership style failed and resulted in a downturn on its economy is the Russian oil company Yukos. It became one of the largest oil producers in Russia and then the market place changed a little and it couldn’t adapt. It is crucial to a leader analyse and
Tamesak holdings is a big company with great reputation which is confronting a large economic fall, diminish in the company’s investment portfolio and an indefinite leadership. Such problems are consequences of a poor management and an incompetent leadership. Tamesak Holding’s management problem at hand is due an old style of leadership and alternatively should change it towards a better numbers for the company. A leader is best described as a member of a group of two or more people that is tasked with structuring or restructuring of a situation and the perceptions and expectations of the other group members (McLaurin, J.R., 2006). A company without a strong leader giving the goals and orientating the staff is more alike to be instable and to fall. This report will look at the importance of a strong leader leading a company and the need for Tamesak Holdings change its leadership approach from a scientific approach to the application of contingency theory on its leadership style.
2.0 Problem Identification:
The problem that Temasek Holdings is dealing with is about the company’s leadership style. After the global financial crises the company suffered a lot and the value of its investment portfolio felled by more than 30 per cent. The CEO at the time Ho Ching, was too classical in her leadership approach failing to use modern leadership structures like the contingency theory and situational leadership models to predict and avoid changes after the global financial crises. The poor results is easily attributed to the CEO by being incapable to “sense and shape opportunities and threats in the changing institutional environment.” (Day, M. & Dixon, S., 2010). Another example of a company where the leadership style failed and resulted in a downturn on its economy is the Russian oil company Yukos. It became one of the largest oil producers in Russia and then the market place changed a little and it couldn’t adapt. It is crucial to a leader analyse and