Assess the view that the changing context of management and organisations in the contemporary business environment makes the skills of management and leadership essential for a manager.

Key topics to be covered for this report:
What has caused organisational change in management and companies?
What leadership models are used in contemporary management and companies?
What skills are critical in leadership today and why?
The complexity of organisational culture
The challenges associated with managing culture within organisations
Why organisations typically have multiple cultures and subcultures, and that these are not easily managed by managers
The differences between integration, differentiation, and fragmentation accounts of organisation culture
The relationship between power and legitimacy are related
Defining and exploring the concept of power relations
The extent to which power conflicts are normal and acceptable in organisations
Management of power as a normal part of management practice
The ‘soft’ ways in which power operates
Positive use of power
Decision making in organisations in the context of power


Introduction of the Study

Today, many organizations are undergoing a systemic shift in the contemporary business environment. There is a drastic change in organizational culture, structure, diversity with the influx of globalization and knowledge-based economies. These changes have formed the basis of responsibilities and duties pertinent to a manager in an organization. Leadership and management has become the centerpiece for the contemporary business environment. According to Mario (2019, 6), leadership and management is the mainframe key marker of success in the modern business. Organizational change has influenced and created foundational knowledge hence increasing responsibilities for the existing leadership and management positions. It is increasingly important to review the complex nature of   the modern world in the context of organization and management change to ascertain the level of responsibilities and knowledge assigned to a manager in the contemporary business environment.

Statement of the problem

The purpose of this study was to determine the essential skills necessary for a manager in the contemporary business environment.

Significance of the study

This report serves as a foundation for an evaluation model that will aid today’s business organizations’ design and adopt a leadership style that guarantees constant development of management skills and responsibilities. For an organization to foster and assimilate the ongoing changes in management and organization, the business must choose a leadership style that is compatible with its employees’ culture and personal traits. The findings of this report will also be beneficial to employees to show how the enormous changes are affecting work performance and simultaneously the firm performance. Finally, the report will also be a valuable tool for scholars. It will provide insights and guidance for educators while setting a curriculum that resonates with the contemporary business environment. Students need to learn the progressive nature of management and organization early on in studies to allow a smooth transition into the workplace.

Scope of the study

This report explores the process of globalization, cultural evolution, and diversity in context of organizational change and management. For this study, globalization will be referenced and interpreted as the primary cause of the ongoing changes and how that, in return, rapidly creates more responsibilities for managers. Cultural differences and diversity will be referenced as the mainframe of the way an organization runs and operates and how this shape and define managers role.

Review of Literature

Today many organizations in the business environment are undergoing enormous change. An enterprise can experience transformation in several ways. This can be influenced by external and internal pressure that transforms the structure, technology, people, and other elements in the organizations. The primary cause for these changes is advancement in technology, market situation, social and political changes. There is a drastic organizational shift every time new products or services are introduced in the market to meet and match modern technology needs. This process alters the managerial and regulatory aspects of an organization to more significant elements. It restructures the role and responsibilities of managers to acclimatize to the technology alternatives. In the event of an ongoing change, there will that requires a new form of leadership that reinvigorates basic managerial positions. As a result, it will be pertinent for leaders to be competent in the management and leadership skills to match the increased responsibility (National Research Council, 1997, 11). The second cause of organizational change is the market situations. The intra and extra-economic environments of an organization are entirely linked to the organizational change. Credit policies, consumer interests, inflation rates, union policies are drastically changing, altering the organizational structure, culture, and diversity. The social and political climate of an organization contributes to enterprise change. Polarized political tensions in a country may spur organizational units to seek social equality hence disrupting the existing regulatory structure and culture.

Methods of study

Leadership Models

This report explored the various leadership roles adopted in the contemporary business environments to form the basis for the magnitude and extent to which disequilibrium influences leaders to design individual leadership models that focus on self-development. Changes in organization and management in the context of contemporary business models are bound to be affected by the leadership models. The transformational leadership style is the main form of leadership style adopted in the modern business environment. A leader can inject change in a pervasive environment by aligning the move with the desired goals(José Sousa et al., 2017, 8). The transformational leadership style plays an integral role in improving the organization’s performance, which simultaneously boosts the unit per production. Given the aggressive nature of the modern business environment, transformational leadership equips a leader with skills that aid planning, controlling, decision-making, and guidance towards the management of the transition.

In a contemporary business environment, business leaders also employ a transactional leadership style to adapt to the new ecosystems. A transactional leader is keen and attentive to the immediate business environment and catapults the followers through motivation and incentives to achieve the already set objectives. Establishing a changing ecosystem requires corporate culture and corporate structure design changes to foster change across multiple organizational functions. Companies need a corporate procedure, culture, and structural design that promote change and can affect business procedure realization throughout both operations management and project management (De Los Rios and Charley, 2017. 109)

Study variables

In efforts to show the complex nature of the contemporary business environment, this report will demystify the critical skills essential for the success of an organization. Today, the business environment comprises of myriad types of leaders equipped with varying skills at different capacities. An enterprise can flourish or fail based on the skills and characteristics of a leader. What is perceived as critical skills for a leader varies from one organization to the other However, in the contemporary business environment; there are distinct characteristics that a manager must possess to survive. According to Koryak et al., 2015, 102), a good leader must exude flexibility. The contemporary business environment is rapidly changing and requires leaders to respond to the changes promptly and actively to allow growth and development.  A flexible leader creates optimal room for cultural evolution and can observe and predict future changes. Through this, the leader can adopt dynamic approaches and insights to understand the parameters of both external and internal development.

Similarly, communication is a critical aspect in the modern business environment. Effective communication forms a solid foundation for the business enterprise. A well-integrated communication model enhances input and output harnessing the company’s vision within the business environment, and even beyond it.

Organizational culture

Organizational culture is a set of collective beliefs, values, and social norms that govern an organization it encompasses all the organizational units and bridges them together to influence and affect power, structure, and decision making. Culture catapults the radical and personal traits and beliefs of all teams in an organization, diffusing them to form a psychological and social environment that benefits the organization. For this reason, culture is the heart of how we interact in the business environment and the organizational dynamics that facilitate personal innovation and assimilation. Modern businesses are challenging the status quo by ensuring uniformity of the organizational culture. The existing corporate cultures are gradually declining to give room to the preferred cultures that match the modern world. Through this, the companies are liable for the actions as a unit and work collectively to solve the needs of their customers. The complex nature of organizational culture dictates the structures, systems, and processes adopted in the organization. Organizational change can only be achieved when the paradigm culture is at the heart of the culture is changed; that is the personal experiences of the employees. Modern managers are always changing narratives, shifts, and creating disequilibrium. It is a fact that all modern business is in a state of ongoing change. According to Kurt Lewin’s unfreeze-change freeze model, organizational culture is an emergent result of a continuous process from one sphere to another to fit certain company ideals in regards to its external environment (Kent, 2011, 3).

Challenges of maintaining organizational culture

A company’s culture is subject to change based on personal experiences, organizational structures, power structures, and control systems. The culture is based on continuous affirming, creation, and expression processes that reflect the people’s feelings, attitudes, and values. Creating a unifying belief in the regenerative process of the organizational culture is a significant challenge that creates a rift between the employees and its leaders. Similarly, reinforcing the corporate culture is a source of conflict between the company and its employees. Managers have a difficult time ensuring parallel application of all organizational culture in all business transactions. With the advent of knowledge-based economies, it has become particularly difficult for the managers to maintain corporate culture due to the occasional misconduct to suit specific business transactions. There is also a major problem in the communication of the preferred organizational culture from the top-level management to the subordinates. The corporate culture requires all employees’ input and should encompass collective personal experiences, values, and norms developed and projected by the followers. Failure to maintain a unified front renders the company culture weak and decrease in job satisfaction as the employees are not moving in the same direction.


Although a smaller company may have its own unique culture, a significant percentage of the enterprise may have different cultures throughout the company as well as co-existing subcultures. These different cultures and subcultures may conflict because each subculture is linked to a different management team. It is associated with a specific functional organization, which may be a stove-piped business unit within the enterprise. Increased alienation and repression in leadership create animosity and hatred that is harmful to the growth and development of an organization. Negative opinions such as prejudice, contempt are the primary source of fiction stories to cover up for work not done. The rise of issue-seeking groups and other factionists groups of unimaginable characters will exploit and paralyze organizational factors that will derail the implementation of the inclusive leadership style. Therefore, it is pertinent to be conscious of the organizational culture so as not be swayed by the masses.

Corporate integration is the process of joining two sub equal cultures to become one or creating a conducive environment for one large organization to absorb a smaller corporate culture…  When small businesses merge to build large firms, managers must ensure that corporate cultures are in synergy. (Idris, Wahab, and Jaapar, 2015, 595).

Differentiation is the meshing of split off teams, ideas, and talents with the same goal to develop new business entities under the original organizational structure but different corporate culture. The modern world has created a conducive environment for this business theatrics to encourage diversity and cultural evolution to suit the expansive markets and customer preferences. In a conventional business setting, fragmentation in regards to organizational culture indicates a disfunction in the overall corporate culture. In most cases, fragmentation occurs when the subculture of the organization does not abide by the preferred lifestyle and abandons it to form an ideal culture under the parent’s organizational structure and management.


In the world today, there is mounting pressure for businesses to achieve global dominance so as to gain power and legitimacy. For a leader, authority and legitimacy are intricately intertwined. However, most of the time, these two concepts are parallel forces that have little connection. Power originates from the level and market base, a business commands, and its ability to meet the customer demands.  In contrast, legitimacy is solely based on the quality of the products (Uphoff, 1989, 300).

According to Strauss, 2006, 63, a philosopher, the definition of power relations takes many dimensions depending on various aspects. For instance, in economics power relations connotes that one person has either more financial capacity that the other or has social-formative power over the other and has the potential to manipulate the subject to suit their interests (Strauss, 2006).

It is increasingly difficult to witness the new wave of conflict normalcy ensuing in the contemporary business environment. Businesses are focused on making profits by overlooking the minor issues that may have irreparable damage to the organization. For instance, some companies turn a blind eye to internal conflict that requires the authorities’ input to solve in fear of taint the reputation of the company. Failure of the company to take immediate action creates a series of unresolved conflicts that affect employee morale, which simultaneously affects work performance. The vertical management system overlooks many disputes that may be the downfall of an organization. For instance, in some organizations, the subordinates cannot directly engage the overall manager to solve an issue. Some leaders use the vertical management system to make employees to instill fear and make their aides feel inferior and incapable of resolving conflicts.


Leadership and management skills are pertinent for any enterprise to flourish. As the organization structure, culture evolves the power acquisition broadens to accumulate the transformative efforts. It is, therefore, crucial for the managers to create power share adoption strategies to change management and leadership. With this managers will be able to diffuse and appoint new leaders in the organization with ease. In a contemporary business world, power is used as an economic tool to close deals. Influential people downplay informative social potentials to influence and attract people through persuasion. For instance, diplomatic relationships are a soft way to shape the preferences of others.

Leaders need to use power for the good of the organization and the environment in which it operates. There are various ways that power can be put in optimal use. Given the ongoing search for power through organizational change, it is practical for organizations to use the control to capitalize on their business needs. Managers can use authority to motivate, create a good relationship with their subordinates, and guide employees to perform their best.

Conclusively, the findings, change in organizational structure, culture dictates the critical skills leaders should have to be successful in the business environment. Traditionally decision making flows a chain of command. The decision process abides by all the formulation and promulgation policies, as stated in the organization policy, enacting the top executive management as the final decision-makers. The organization is perceived as a power structure whose success or failure is based on the decision.

Reference List

Na osé Sousa, M. et al. (2017) ‘Project Managers Perceptions about more Effective Leadership Styles,’ JOURNAL OF INTERNATIONAL BUSINESS RESEARCH AND MARKETING, 2(3), pp. 7–13. DOI: 10.18775/jibrm.1849-8558.2015.23.3001.

National Research Council, 1997. Enhancing organizational performance. National Academies Press.

De Los Rios, I.C. and Charnley, F.J., 2017. Skills and capabilities for a sustainable and circular economy: The changing role of design. Journal of Cleaner Production, 160, pp.109-122.


Kent, R.H., 2011. Unfreeze/refreeze: A simple change model. The Mansis Developmant Corporation.
Idris, S.A.M., Wahab, R.A. and Jaapar, A., 2015. Corporate cultures integration and organizational performance: A conceptual model on the performance of acquiring companies. Procedia-Social and Behavioral Sciences, 172, pp.591-595.

Strauss, D.F.M., 2006. The best known but least understood part of Dooyeweerd’s philosophy. Journal for Christian Scholarship= Tydskrif vir Christelike Wetenskap, 42(1-2), pp.61-80.

Uphoff, N., 1989. Distinguishing power, authority & legitimacy: Taking Max Weber at his word by using resources-exchange analysis. Polity, 22(2), pp.295-322.



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