Leading in a Changing World

Is there a single, ideal leadership and management style and approach that is most effective?

It was when I landed my first job when I realized that being a manager and being a leader were not synonymous to each other. My manager is good at her work and capable of getting the job done, but many times my colleagues have comments about her management system and how her way of leadership is destroying the morale of the team. Working in a company that was established in 1986, it is apparent that the work culture here was built on authority, and one must prove themselves worthy to exercise decision-making and lay out the procedures to reach goals to get promoted. A phrase my superior loves say is “If we don’t hit our sales target this cycle, we’ll only be eating vegetables next month.” (Jokes on her, I love vegetables.)

Despite the dissatisfaction that circles around the team during peak season in the company, there are times where we understand why this autocratic view of leadership is much more efficient compared to us flailing around with unproductive feedback. According to Mullins in Management & Organisational Behaviour, there are many approaches to leadership, but the leadership framework can be categorized and simplified to the three main styles: authoritative (autocratic), laissez-faire, or democratic leadership (Mullins, 2016). In an authoritative framework, the focus of the power is with the manager, and everyone reports to them and perform their duties as instructed. In comparison, managers who practice laissez-faire leadership passes the focus to the team, allowing them to make the final decisions that propagates towards the team goal. The final style discussed is the democratic leader, who assimilates with the team and allows team members to have a greater say in the final decision.

Figure 1. A simplified three-fold heading of Leadership styles (Mullins 2016).

One example of a leader who exercise authoritative leadership includes Walter Elias Disney, who co-founded The Walt Disney Company in 1923.

Figure 2. Walter Disney. Source: Encyclopedia Britannica, Inc.

Established in 1923, the Walt Disney Company started in the American animation industry before venturing into live-action film production and theme parks. Many knew Walt Disney for his passion in drawing cartoons and animation, but many also found him to be excessively autocratic when it came to his business model.  According to Wahdwa in Inc.com, he would fire employees on the spot when he thinks they were unable to perform, and despite holding surveys for ideas and feedback, Disney would only dictate his conditions and were strict on his requirements (Wahdwa, 2015).  Yet Disney was able to grow the Walt Disney Company through conscious management decisions, leading to the magical Disney that we know today, with various theme park locations and multiple award-winning animations and movies (thewaltdisneycompany.com).

Fast forward to today, there are many examples of companies with different leadership structures that thrive in our current economy. One example includes Grab, which was founded by Anthony Tan and Tan Hooi Ling back in 2012.

Figure 3 Founders of Grab, Anthony Tan and Tan Hooi Ling. Source: Fortune.com

Grab’s core inspiration came from omitting the travelling woes and discomfort from using the taxi services in Malaysia:

“The simple act of going somewhere was a risk. When Hooi Ling took taxi’s home after a late night at work, she would pretend to be on the phone… to deter drivers from robbing or attacking her.”

The Grab Way, p. 1

In 2012, Anthony Tan and Tan Hooi Ling saw an opportunity to redefine the Malaysian taxi market and launched Grab, which was initially launched as MyTeksi (Ruehl & Palma, 2021). Even though it began with the dream to ease the travelling woes of people, Grab has grown immensely and now has multiple subsections that include but not limited to food and groceries delivery, e-wallet options, and delivery needs, (Grab.com, 2021).

Figure 4. Different services available from Grab. Source: Grab.com

Today, Grab has grown to be one of the largest mobile technology corporations in Southeast Asia, addressing the needs of consumers, drivers, merchants alike to improve their quality of life, with Altimeter Growth’s SPAC listing valued at nearly $40 billion (USD) (Burgos, 2021).

Many employees at Grab saw the opportunity to utilize their strengths and this was also implemented by Anthony Tan. In Wild Digital 2017, Anthony shared, “Every time we didn’t agree on something we’d say, ‘okay lets go back to the principles, go back to the values’” (Puniselvam, 2017). The democratic approach from Tan enabled more ideas to circulate, which may have contributed to the foundation of Grab as a startup company and grow to what it is today. Some employees at Grab have claimed that they practice the ‘ypimp’ model, which stands for ‘your problem is my problem’ (Cheok, 2018). In an article written by Anthony Tan himself, he shares that the leaders at Grab focus on coaching and inspiring by leading through example, and in a fast-growing company it is key to seek help and feedback while constantly adapting to new information and changing circumstances (Tan, 2021).

Why do some companies excel with democratic management, yet others thrive in autocratic leadership? Why do small companies share similar concerns with conglomerates, yet it is ineffective for them to practice the same management style? Different organizations call for different management systems that provides different outcomes; it is prevalent that not one single leadership style will fit each situation. Many times, some leaders exercise multiple leadership styles to achieve their goals in a specific amount of time. Managers tend to make decisions based on the situation and environmental pressure at hand, and based on Mullins (2016, p. 320), these four forces in the situation include:

1. Type of organization
2. Group effectiveness
3. Nature of the problem
4. Pressure of time

Therefore, successful leaders are always aware of the forces that are most relevant to their current situation and can react and adapt to the situation and environment influence at hand.

Today’s CEOs are faced with overwhelming challenges due to the coronavirus pandemic—many corporations are undergoing major restructuring, retrenchment is becoming more apparent, and furloughed employees are at high risk of being laid off permanently (Kelly, 2020).

Figure 5. Source: stress.lovetoknow.com (Applebury)

According to Bloomberg, over 200,000 jobs losses were recorded in global firms, including Salesforce, Ford, Coca-Cola, and more (Querolo, 2020). During these emotional times, it is necessary for leaders to channel their empathetic side to fully relate with their team so they can support accordingly. In a study conducted by Lester Coch and John French Jr. in 1948, they found that resistance to change is significantly decreased by the involving the people who are directly affected by the change (Lawrence, 2014). In terms of “total participation”, the group who had minimal resistance to change were individually met by the operators and management to share their concerns. This two-way interaction enables both sides to understand each other’s perspectives and concerns, which may have led the “total participation” group to even exceed their previous performance. As explained by Brower, empathy is a strong emotion that enables us to understand another from a different perspective, and it allows us further establish meaning and priority in a team (2021).  

How Would I Like to be Led?

The examples and references from different companies and organizational culture to show that leadership is prevalent in every environment, and good leadership stems from the ability to reflect on oneself and one’s impact to the team. Coming from an autocratic management environment, I can understand both side of this management style, but I would still prefer to voice my opinions and get feedback in a democratic environment. In regards to the CMI (2013) statement on leadership, I believe if there was one single leadership and management style that is effective in all situations, it would be transformational leadership, where one is able to recognize which leadership style is most efficient for each situation (Mullins, 2016). Effective leaders are able identify which styles of leadership are required in different situations and transformational leadership enables leaders to work more efficiently in a diversified workplace. However, high adaptability also demands a lot from the leaders as they are required to analyze and adapt frequently to different situations. Nevertheless, managers and leaders alike do not fit in one specific mold, and every individual has their own way of leading a team. The most efficient way of leading will always be what each person is comfortable with, and how they use it to their advantage, whether it be a transformational, democratic, authoritarian or all the above. Instead of focusing on one specific management style, I believe it is better to encourage leaders to seek the system that is most comfortable for them and their team to work in the most amiable and efficient way possible.

References and Citations

Applebury, G. (n.d.). Understanding a Stressed Woman. LoveToKnow. Retrieved October 12, 2021, from https://stress.lovetoknow.com/about-stress/understanding-stressed-woman

Belanger, L. (2021, May 12). Anthony Tan and Hooi Ling Tan. Fortune. https://fortune.com/worlds-greatest-leaders/2021/anthony-and-hooi-ling-tan/

Brower, T. (2021, September 1). Empathy Is The Most Important Leadership Skill According To Research. Forbes. https://www.forbes.com/sites/tracybrower/2021/09/19/empathy-is-the-most-important-leadership-skill-according-to-research/?sh=fdd39a23dc5b

Burgos, J. (2021, August 12). Grab Cofounder Anthony Tan Grabs A Spot On Singapore Rich List 2021. Forbes. https://www.forbes.com/sites/jonathanburgos/2021/08/11/grab-cofounder-anthony-tan-grabs-a-spot-on-singapore-rich-list-2021/?sh=54d93b8044a5\

Cheok, J. (2018, June). What the leadership looks like at Grab, now one of South-East Asia’s largest startups. The Peak Singapore – Your Guide to The Finer Things in Life. https://www.thepeakmagazine.com.sg/lifestyle/what-the-leadership-looks-like-at-grab-now-one-of-south-east-asias-largest-startups/

Forbes. https://www.forbes.com/sites/tracybrower/2021/09/19/empathy-is-the-most-important-leadership-skill-according-to-research/?sh=1bd32ed83dc5

Grab Malaysia. (2021). Grab. Grab MY. https://www.grab.com/my/

Kelly, J. (2020, September). Layoffs Continue and Furloughs Become Permanent Job Losses. Forbes. https://www.forbes.com/sites/jackkelly/2020/09/01/layoffs-continue-and-furloughs-become-permanent-job-losses/?sh=49db4ee677b5

Lawrence, P. R. (2014, August). How to Deal with Resistance to Change. Harvard Business Review. (Original Published in 1969) https://hbr.org/1969/01/how-to-deal-with-resistance-to-change

Mullins, L. (2016). Management & Organisational Behaviour, 11th ed. (11th ed.) [E-book]. Trans-Atlantic Publications, Inc.

Punirselvam’s, S. (2018, March 28). Leadership Lessons from Grab (28 March 2018). Malaysian Institute of Management. https://mim.org.my/leadership-lessons-from-grab/

Querolo, N. (2020, August 29). Job Cuts at MGM, Coca-Cola, Boeing, Herald Economic Pain Ahead. Bloomberg. Fhttps://www.bloomberg.com/news/articles/2020-08-29/job-cuts-at-mgm-coca-cola-boeing-herald-economic-pain-ahead

Tan, A. (2021, June 5). THE GRAB WAY: HOW DO WE STAY ON MISSION. LinkedIn. https://www.linkedin.com/pulse/grab-way-how-do-we-stay-mission-anthony-tan/?trackingId=xSQARClIQFOV0F7bfAs2pg%3D%3D

The Grab Way (2021, p. 1). Grab. https://assets.grab.com/wp-content/uploads/media/ir/The-Grab-Way.pdf

The Walt Disney Company. Our Businesses. Thewaltdisneycompany.com. https://thewaltdisneycompany.com/about/#our-businesses

Wadhwa, V. (2016, June 15). What You Can Learn From the Leadership Styles of Walt Disney, Henry Ford, Steve Jobs, and Elon Musk. Inc.com. https://www.inc.com/linkedin/vivek-wadhwa/democracy-great-thing-except-workplace-vivek-wadhwa.html