netrashetty
Netra Shetty
HSBC Holdings plc (Chinese: 滙豐控股有限公司) is a global banking and financial services company headquartered in Canary Wharf, London, United Kingdom.[3] As of 2010 it was the world's sixth-largest banking and financial services group and eighth-largest company according to a composite measure by Forbes magazine.[6][7] It has around 7,500 offices in 87 countries and territories across Africa, Asia, Europe, North America and South America and around 100 million customers.[4][8] As of 30 June 2010 it had total assets of $2.418 trillion, of which roughly half were in Europe, a quarter in the Americas and a quarter in Asia.[5]
HSBC Holdings plc was founded in London in 1991 by The Hongkong and Shanghai Banking Corporation to act as a new group holding company and to enable the acquisition of UK-based Midland Bank.[1] The origins of the bank lie in Hong Kong and Shanghai, where branches were first opened in 1865.[2] Today HSBC remains the largest bank in Hong Kong, and recent expansion in mainland China, where it is now the largest international bank, has returned it to that part of its roots.[8][9]
HSBC is a universal bank and is organised within four business groups: Commercial Banking; Global Banking and Markets (investment banking); Personal Financial Services (retail banking); and Private Banking.[
Leadership is one of the most pressing issues and one of the least understood concepts in the corporate world. The history of leadership encompasses through several paradigm shifts and voluminous body of knowledge. As a universal activity, leadership is fundamental for effective organizational and social functioning. The very nature of leadership is its influencing process and its resultant outcomes. Such process is determined by the leaders and followers characteristics, dispositions, behavior perceptions, attributions and the context wherein the process of influencing occurs. The moral purpose of leadership is to create an empowered follower that leads to moral outcomes that are achieved through moral means (Antonakis, et al, 2004, p. 5).
In defining leadership, we must take into consideration its distinctness from power and management. Power refers to the potential of any leader to influence others that include referent power, expertise, the ability to reward or punish and others. Management refers to objective-driven approaches in acquiring stability based on rationality, bureaucratic means and the fulfillment of contractual obligations. Whereas, leadership refers to purpose-driven that results in changes that are based on values, ideals, visions, symbols and emotional exchanges. Based on these definitions, we can say that leadership and management both requires power, however, management implicates the cognitive domain of employees compared to leadership that has direct effect on affective domain (Ibid).
Since leaderships rely upon providing directions that satisfies the motivational needs of others, there is a relationship between leadership and motivation. As an individual power, motivation can stand on its own. Leaders, on the other hand, act to provide satisfaction. To wit, successful leaders understand the needs of others and subsequently apply perception and influence to show others that the most satisfaction is achieved when following the leader’s view. Leadership cannot succeed without motivation (Bittel, 1992, p. 269).
According to Antonakis, et al, leadership is fundamental for effective organizational and social functioning. The very nature of leadership is its influencing process and its resultant outcomes. Such process is determined by the leaders and followers characteristics, dispositions, behavior perceptions, attributions and the context wherein the process of influencing occurs. The moral purpose of leadership is to create an empowered follower that leads to moral outcomes that are achieved through moral means (2004, p. 5). As a universal activity, leadership refers to purpose-driven that result in changes that are based on values, ideals, visions, symbols and emotional exchanges.
There are two theories on leadership that shape leadership aspect of most organizations of today as transactional and transformational theories. Transactional theory is also known as management theory. The transactional nature of leadership deals with the task-oriented leaders. They tend to focus on role of supervision, operations and group performance in achieving finite goals. A system of reward and punishment is the basis of this theory; hence, the relationship is very dependent. Many economists believed that the integration of transactional with the transformational leadership is more favorable instead of just substituting the former with the latter (Martin, 2006, p. 47).
Transformational leadership, also refer to as relationship theory, builds upon the connection between leaders and followers. Transformational leaders have a strong sense of mission and an ability to influence subordinates. They lead the group from “what is” to “what is describable” to “what ought to be”. The main functions of transformational leaders are idealized leadership, inspirational motivation, intellectual stimulation and individualized consideration (Martin, 2006).
Leadership can be distinguished as explicit and implicit and formal and informal. Explicit leadership is base on leader’s actual behavior (overt) that are measured and evaluated and implicit leadership theory is founded on conceptual structure, definition and expectation of the people on how a leader should behave (covert). Assessing the implicit leadership theory always incorporates explicit elements (Silverthrone, 2005, p. 68).
Leadership Effectiveness
Effective leadership per se takes on influencing followership. Leadership organizations ensures that decision-making is placed at the proper level and purports that proper checking and balances are in place. The Board of Directors is responsible for conducting thorough review through solid and diverse experiences and credentials. The board also embodies the corporate governance guidelines, codes of business conduct and financial ethics. The corporate officers support the board and occupy the management role. The leadership’s role mainly focuses on driving growth and sustainability thus it requires a close contact with different committees and units.
First, there is a clear distinction on the roles played by the leaders and the employees; they know their stand. Second, leaders manifest faith towards the capability of the employees regardless of the gender. The workplace is not discriminating in any way. Third, individualized consideration and reasonable sanctions are other positive aspects of their leadership. Fourth, because of fear, poignantly, the workforce is more disciplined. Avoiding punishments also forces the employees to work productively. Fifth, the knowledge that ‘their hardwork will be recognized’ worked as implicit motivators. And finally, informations are disseminated faster and easier; thus, reciprocation is usual and acknowledged.
The leadership style itself must be improved. The organization must combine another leadership style which is transformational with transactional leadership (Goethals, et al, 2004, p. 697). Concerns with business operations and discipline within the workplace are evident. Though the people will be motivated more if the organization will provide for a ‘sense of purpose and ownership’ as a motivation. Influence over followers, task goals and organizational culture should be a priority for leaders. Interaction patterns must be likewise examined (Deresky, 2006, p. 423) and identify the possibility of face-to-face exchanges. In this way, the leaders can directly, beyond doubt identify the needs of their people.
In considering how the leaders influence the organizational culture, the structure of leadership must be also explored. Since there are many leadership styles that could be used then the manner of influencing the culture-building process conforms to many ways as well. For one, transactional leaders work within their organizational culture and transformational leaders change them. While also, leaders worked on transforming organizational visions into reality then the performance and productivity of the organization as a whole must be aligned around that vision. Culture-building, in lieu with this, necessitates a purpose-driven leadership. However, as Edgar Schein puts it, leaders are exposed to different orientations and role definitions and the impact of founders as leaders as well. Schein maintains a ‘culture embedding’ that claims that culture manages management more than management manages culture especially when organizations approach the organizational midlife.
Bass argued that leaders could function as founders of cultures, of counter cultures and even act as agents of change in dominant cultures. Antecedent leaderships are the main source of organization’s culture and it affects the subsequent leader-subordinate relationships in several ways (1990). The founding or organizational cultures relates to a preconceived ‘cultural paradigm’ that could either strengthen or damaged the entire organization. As culture-builders, leaders understand the power of culture, values and integrating them into the organization. The need for leaders to be cultural facilitators is manifested in the daily management structures and routines in order to achieve organizational purposes or end values.
Organizational evolution in midlife is apparent in the changing dynamics of culture and leadership. As groups mature they develop subgroups. The consideration of microcosm reflects a degree of relativity. The creation and management of subcultures are other tasks for leaders. However, there are major bases of differentiation as functional, geographical, differentiation (by product, market and technology and by hierarchical level), ‘divisionization’, mergers and acquisition, joint ventures and structural opposition groups. Occupational functions help organizations to be more articulated and, thus, shorten the communication gap. Since occupational functions are exercised at all levels of the organization, a diversified workforce based on functions will exist. Another thing is that the creation of subcultures conforms to several geographical units that logically alter the communication. The impact of strategic alliances and organizational members’ resistance, in addition, calls for an organizational change that may sacrifice the organizational culture.
The culture of an organization is intertwined with the philosophy, purposes, functions and structures and wherein organizational members develop mutually-accepted ideas and beliefs regarding what is real, what is important and how to respond. Further, the importance of leaders is viewed as main transmitters of organization’s culture and values. Leaders act as builders, as maintainers and as watchdogs of organizational culture and values per se (as cited in Bass, 1990, pp. 586-588). Aside from the reality that leaders create culture, countercultures and changing the dominant cultures, the leaders’ role also deals with managing the culture and maintaining them as always acceptable. Leaders must develop new values and recognize emerging values while exploiting existing values. An aggressive approach is necessary at this stage to facilitate the expansion of organization’s knowledge and value base. Organizations may further identify themselves with internal and external sources of knowledge, values and corporate culture. Internal processes involve creation, as discussed above, integration and dispersal of culture within the boundaries of the organization. External process is a two-step process wherein organization members are exposed to outside culture and then transfer them to other members inside the organization (Choo and Bontis, 2002 p. 280).
All of the factors mentioned above are organizational evolution that calls for necessary evolution of leadership functions and roles. More than being integrators and facilitators, leaders are required to have keen observation and scrutinizing skills. For an instance, when the organization is faced with the conflict that emerge from its founders and when maintaining cultures is gradually being insufficient to the organization’s needs and demands, then the organization must congregate with an external organizational specialist – an OD practitioner, for example. So as not to distort existing, effective values and knowledge, leaders must carefully examine the emerging trends in culture and employee behaviors. In this process, leaders could manipulate the culture for their own term and not on the OD practitioner’s side (Harvey and Brown, 2006). In effect, leaders could maintain equilibrium and maximize autonomy while motivating changes even in the presence of an external force (Schein, 2004).
As overseers, leaders are also expected to be cultural change agents in order to unlearn things that are no longer serving the organization well. The process of unlearning involves anxiety, defensiveness and resistance to change from both leaders’ and subordinates’ side. Change must begin with the leaders. When leaders find themselves possessing dysfunctional processes, then these must be changed. Thinking of themselves as change agents, leaders must think of themselves as providers of ‘psychological safety’ and a genuine believer of cultural dynamics and the attributes of their own organizational culture. Since culture cannot be manipulated then the leaders must ‘walk the talk’ and not the other way around. In addition, safeguarding the changes in culture directly points to assessing the cultural dimensions. This can be done through internal interventions to facilitate leadership commitment and the exploring the views of the macrocosm. This involves the acquiring knowledge on their values, shared assumptions, identifying barriers and analyzing them
Why is good leadership important in small firms?
"Most small firms are going through an evolutionary process - perhaps they're taking on more staff, expanding their customer reach or diversifying their product - so it's crucial that the business is being led in the right direction for long-term success.
"However, while anyone can call themselves a leader, it's good leadership that's important. In other words, to take the enterprise forward, leadership needs to be prolonged and sustainable.
"Good leadership helps you focus on your brand and makes sure that everyone understands the importance. There are online tools such as 'Building your brand' which are an ideal starting point."
What makes an effective leader in a small business?
"It depends. Imagine a barometer showing different leadership styles, from autocratic and directional on one side, to an empowering, democratic style on the other. Both these leader types exist, with shades in between of course, and both can work well depending on what is required.
"In businesses where staff contribution levels are low, a more directional style may be necessary, but in firms where employees have an intelligent understanding of the business' objectives, you can afford to be more democratic."
Have leadership skills been particularly important during the recession?
"Yes, absolutely. Now, more than ever, leadership skills are at a premium. Most businesses won't be the same after this economic downturn, because they've had to adapt or move on in order to survive. But organisations can't change without good leadership. Staff also need to feel reassured during stressful times, and that's very much part of steering the ship properly."
How can I improve my leadership skills?
"Being open to learning is very important. Many business owners get used to doing things their way over the years, but you must keep challenging yourself. Constantly ask yourself 'how can I do things differently here?' Be receptive to new ideas and new methods, and seek out organisations or mentors that can help you. One-to-one coaching can also be effective."
What are the signs that I'm not a good leader?
"Most people, if they're honest with themselves, will know if they're not a good leader. But simple indicators like high staff turnover, the way that people respond to you or the level of engagement in your company can all indicate that your leadership skills are poor."
Can anyone become a good leader?
"This is probably one of the most common questions that I get asked. The simple reply is that everybody is born with the power to become a good leader, but it's to what level that they develop this ability that matters. It also depends on what you want to achieve.
"Some people are very good in a short-term role, such as turning a failing organisation around, but they're not necessarily the best choice long-term. But I'd say anyone can develop leadership traits - you just need to make sure that, under pressure, they don't revert back to their old style."
HSBC Holdings plc was founded in London in 1991 by The Hongkong and Shanghai Banking Corporation to act as a new group holding company and to enable the acquisition of UK-based Midland Bank.[1] The origins of the bank lie in Hong Kong and Shanghai, where branches were first opened in 1865.[2] Today HSBC remains the largest bank in Hong Kong, and recent expansion in mainland China, where it is now the largest international bank, has returned it to that part of its roots.[8][9]
HSBC is a universal bank and is organised within four business groups: Commercial Banking; Global Banking and Markets (investment banking); Personal Financial Services (retail banking); and Private Banking.[
Leadership is one of the most pressing issues and one of the least understood concepts in the corporate world. The history of leadership encompasses through several paradigm shifts and voluminous body of knowledge. As a universal activity, leadership is fundamental for effective organizational and social functioning. The very nature of leadership is its influencing process and its resultant outcomes. Such process is determined by the leaders and followers characteristics, dispositions, behavior perceptions, attributions and the context wherein the process of influencing occurs. The moral purpose of leadership is to create an empowered follower that leads to moral outcomes that are achieved through moral means (Antonakis, et al, 2004, p. 5).
In defining leadership, we must take into consideration its distinctness from power and management. Power refers to the potential of any leader to influence others that include referent power, expertise, the ability to reward or punish and others. Management refers to objective-driven approaches in acquiring stability based on rationality, bureaucratic means and the fulfillment of contractual obligations. Whereas, leadership refers to purpose-driven that results in changes that are based on values, ideals, visions, symbols and emotional exchanges. Based on these definitions, we can say that leadership and management both requires power, however, management implicates the cognitive domain of employees compared to leadership that has direct effect on affective domain (Ibid).
Since leaderships rely upon providing directions that satisfies the motivational needs of others, there is a relationship between leadership and motivation. As an individual power, motivation can stand on its own. Leaders, on the other hand, act to provide satisfaction. To wit, successful leaders understand the needs of others and subsequently apply perception and influence to show others that the most satisfaction is achieved when following the leader’s view. Leadership cannot succeed without motivation (Bittel, 1992, p. 269).
According to Antonakis, et al, leadership is fundamental for effective organizational and social functioning. The very nature of leadership is its influencing process and its resultant outcomes. Such process is determined by the leaders and followers characteristics, dispositions, behavior perceptions, attributions and the context wherein the process of influencing occurs. The moral purpose of leadership is to create an empowered follower that leads to moral outcomes that are achieved through moral means (2004, p. 5). As a universal activity, leadership refers to purpose-driven that result in changes that are based on values, ideals, visions, symbols and emotional exchanges.
There are two theories on leadership that shape leadership aspect of most organizations of today as transactional and transformational theories. Transactional theory is also known as management theory. The transactional nature of leadership deals with the task-oriented leaders. They tend to focus on role of supervision, operations and group performance in achieving finite goals. A system of reward and punishment is the basis of this theory; hence, the relationship is very dependent. Many economists believed that the integration of transactional with the transformational leadership is more favorable instead of just substituting the former with the latter (Martin, 2006, p. 47).
Transformational leadership, also refer to as relationship theory, builds upon the connection between leaders and followers. Transformational leaders have a strong sense of mission and an ability to influence subordinates. They lead the group from “what is” to “what is describable” to “what ought to be”. The main functions of transformational leaders are idealized leadership, inspirational motivation, intellectual stimulation and individualized consideration (Martin, 2006).
Leadership can be distinguished as explicit and implicit and formal and informal. Explicit leadership is base on leader’s actual behavior (overt) that are measured and evaluated and implicit leadership theory is founded on conceptual structure, definition and expectation of the people on how a leader should behave (covert). Assessing the implicit leadership theory always incorporates explicit elements (Silverthrone, 2005, p. 68).
Leadership Effectiveness
Effective leadership per se takes on influencing followership. Leadership organizations ensures that decision-making is placed at the proper level and purports that proper checking and balances are in place. The Board of Directors is responsible for conducting thorough review through solid and diverse experiences and credentials. The board also embodies the corporate governance guidelines, codes of business conduct and financial ethics. The corporate officers support the board and occupy the management role. The leadership’s role mainly focuses on driving growth and sustainability thus it requires a close contact with different committees and units.
First, there is a clear distinction on the roles played by the leaders and the employees; they know their stand. Second, leaders manifest faith towards the capability of the employees regardless of the gender. The workplace is not discriminating in any way. Third, individualized consideration and reasonable sanctions are other positive aspects of their leadership. Fourth, because of fear, poignantly, the workforce is more disciplined. Avoiding punishments also forces the employees to work productively. Fifth, the knowledge that ‘their hardwork will be recognized’ worked as implicit motivators. And finally, informations are disseminated faster and easier; thus, reciprocation is usual and acknowledged.
The leadership style itself must be improved. The organization must combine another leadership style which is transformational with transactional leadership (Goethals, et al, 2004, p. 697). Concerns with business operations and discipline within the workplace are evident. Though the people will be motivated more if the organization will provide for a ‘sense of purpose and ownership’ as a motivation. Influence over followers, task goals and organizational culture should be a priority for leaders. Interaction patterns must be likewise examined (Deresky, 2006, p. 423) and identify the possibility of face-to-face exchanges. In this way, the leaders can directly, beyond doubt identify the needs of their people.
In considering how the leaders influence the organizational culture, the structure of leadership must be also explored. Since there are many leadership styles that could be used then the manner of influencing the culture-building process conforms to many ways as well. For one, transactional leaders work within their organizational culture and transformational leaders change them. While also, leaders worked on transforming organizational visions into reality then the performance and productivity of the organization as a whole must be aligned around that vision. Culture-building, in lieu with this, necessitates a purpose-driven leadership. However, as Edgar Schein puts it, leaders are exposed to different orientations and role definitions and the impact of founders as leaders as well. Schein maintains a ‘culture embedding’ that claims that culture manages management more than management manages culture especially when organizations approach the organizational midlife.
Bass argued that leaders could function as founders of cultures, of counter cultures and even act as agents of change in dominant cultures. Antecedent leaderships are the main source of organization’s culture and it affects the subsequent leader-subordinate relationships in several ways (1990). The founding or organizational cultures relates to a preconceived ‘cultural paradigm’ that could either strengthen or damaged the entire organization. As culture-builders, leaders understand the power of culture, values and integrating them into the organization. The need for leaders to be cultural facilitators is manifested in the daily management structures and routines in order to achieve organizational purposes or end values.
Organizational evolution in midlife is apparent in the changing dynamics of culture and leadership. As groups mature they develop subgroups. The consideration of microcosm reflects a degree of relativity. The creation and management of subcultures are other tasks for leaders. However, there are major bases of differentiation as functional, geographical, differentiation (by product, market and technology and by hierarchical level), ‘divisionization’, mergers and acquisition, joint ventures and structural opposition groups. Occupational functions help organizations to be more articulated and, thus, shorten the communication gap. Since occupational functions are exercised at all levels of the organization, a diversified workforce based on functions will exist. Another thing is that the creation of subcultures conforms to several geographical units that logically alter the communication. The impact of strategic alliances and organizational members’ resistance, in addition, calls for an organizational change that may sacrifice the organizational culture.
The culture of an organization is intertwined with the philosophy, purposes, functions and structures and wherein organizational members develop mutually-accepted ideas and beliefs regarding what is real, what is important and how to respond. Further, the importance of leaders is viewed as main transmitters of organization’s culture and values. Leaders act as builders, as maintainers and as watchdogs of organizational culture and values per se (as cited in Bass, 1990, pp. 586-588). Aside from the reality that leaders create culture, countercultures and changing the dominant cultures, the leaders’ role also deals with managing the culture and maintaining them as always acceptable. Leaders must develop new values and recognize emerging values while exploiting existing values. An aggressive approach is necessary at this stage to facilitate the expansion of organization’s knowledge and value base. Organizations may further identify themselves with internal and external sources of knowledge, values and corporate culture. Internal processes involve creation, as discussed above, integration and dispersal of culture within the boundaries of the organization. External process is a two-step process wherein organization members are exposed to outside culture and then transfer them to other members inside the organization (Choo and Bontis, 2002 p. 280).
All of the factors mentioned above are organizational evolution that calls for necessary evolution of leadership functions and roles. More than being integrators and facilitators, leaders are required to have keen observation and scrutinizing skills. For an instance, when the organization is faced with the conflict that emerge from its founders and when maintaining cultures is gradually being insufficient to the organization’s needs and demands, then the organization must congregate with an external organizational specialist – an OD practitioner, for example. So as not to distort existing, effective values and knowledge, leaders must carefully examine the emerging trends in culture and employee behaviors. In this process, leaders could manipulate the culture for their own term and not on the OD practitioner’s side (Harvey and Brown, 2006). In effect, leaders could maintain equilibrium and maximize autonomy while motivating changes even in the presence of an external force (Schein, 2004).
As overseers, leaders are also expected to be cultural change agents in order to unlearn things that are no longer serving the organization well. The process of unlearning involves anxiety, defensiveness and resistance to change from both leaders’ and subordinates’ side. Change must begin with the leaders. When leaders find themselves possessing dysfunctional processes, then these must be changed. Thinking of themselves as change agents, leaders must think of themselves as providers of ‘psychological safety’ and a genuine believer of cultural dynamics and the attributes of their own organizational culture. Since culture cannot be manipulated then the leaders must ‘walk the talk’ and not the other way around. In addition, safeguarding the changes in culture directly points to assessing the cultural dimensions. This can be done through internal interventions to facilitate leadership commitment and the exploring the views of the macrocosm. This involves the acquiring knowledge on their values, shared assumptions, identifying barriers and analyzing them
Why is good leadership important in small firms?
"Most small firms are going through an evolutionary process - perhaps they're taking on more staff, expanding their customer reach or diversifying their product - so it's crucial that the business is being led in the right direction for long-term success.
"However, while anyone can call themselves a leader, it's good leadership that's important. In other words, to take the enterprise forward, leadership needs to be prolonged and sustainable.
"Good leadership helps you focus on your brand and makes sure that everyone understands the importance. There are online tools such as 'Building your brand' which are an ideal starting point."
What makes an effective leader in a small business?
"It depends. Imagine a barometer showing different leadership styles, from autocratic and directional on one side, to an empowering, democratic style on the other. Both these leader types exist, with shades in between of course, and both can work well depending on what is required.
"In businesses where staff contribution levels are low, a more directional style may be necessary, but in firms where employees have an intelligent understanding of the business' objectives, you can afford to be more democratic."
Have leadership skills been particularly important during the recession?
"Yes, absolutely. Now, more than ever, leadership skills are at a premium. Most businesses won't be the same after this economic downturn, because they've had to adapt or move on in order to survive. But organisations can't change without good leadership. Staff also need to feel reassured during stressful times, and that's very much part of steering the ship properly."
How can I improve my leadership skills?
"Being open to learning is very important. Many business owners get used to doing things their way over the years, but you must keep challenging yourself. Constantly ask yourself 'how can I do things differently here?' Be receptive to new ideas and new methods, and seek out organisations or mentors that can help you. One-to-one coaching can also be effective."
What are the signs that I'm not a good leader?
"Most people, if they're honest with themselves, will know if they're not a good leader. But simple indicators like high staff turnover, the way that people respond to you or the level of engagement in your company can all indicate that your leadership skills are poor."
Can anyone become a good leader?
"This is probably one of the most common questions that I get asked. The simple reply is that everybody is born with the power to become a good leader, but it's to what level that they develop this ability that matters. It also depends on what you want to achieve.
"Some people are very good in a short-term role, such as turning a failing organisation around, but they're not necessarily the best choice long-term. But I'd say anyone can develop leadership traits - you just need to make sure that, under pressure, they don't revert back to their old style."