The Importance of Leadership

by Torsten Berkel (Author)
©2013 Academic Paper 15 Pages


Having a closer look on the global environment, there is a particular trend which can be identified, more and more companies follow globalization. [...] Due to this trend, the competition in the national but also in the international markets increases which forces companies to adapt to new strategies in order to stay competitive.
Companies can use different ways to stay competitive. Either they try to cut costs or they increase their efficiency for instance in their processes. In many cases the entities do not consider the human resources in their thoughts. By reason of the today's similarity of the different products and processes, employees can make an essential competitive difference in order to bring competitive advantages for the company. Innovation-potential and creativity are core competencies which can bring a unique selling proposition. If the employees have a great commitment, which means, if they identify with their employer, they tend to put more effort into the usage of all their energy to solve work related problems (Human Resources Management in the demographical change, page 76). Besides the commitment, they also need the right skills in order to solve those problems. Depending on the industry, many companies nowadays agree on the aspect that the human resources are one of the most important ones. For example in the consulting sector it is more relevant to command high skilled workers than in the mining sector. The process of hiring, introducing and training new people is related to high costs (How to motivate employees, page 14). By reason of that, it seems obvious that a company has a huge advantage when their employees are committed and less likely to leave the firm. To create this kind of psychological connection it is highly important that the management understands the needs of each individual (Human Resources Management, page 8). Thinking about a global company, the people within the organization become even more diverse, which leads to a greater challenge in meeting everyone's needs. [...] The content of this essay is do identify the main factors which lead to commitment and which instruments or tools a company can use to create this connection. It will present different strategies to develop the commitment of the human resources in order to survive within the business environment.


Table Of Contents

organization become even more diverse, which leads to a greater challenge in
meeting everyone's needs. Different cultures, different ways of thinking, ways of
problem-solving and behavior have to be taken into account in order to a create
global-local balance. This means, the company has to consider global capabilities as
well as local sensitivity to meet the needs of their employees. The content of this
essay is do identify the main factors which lead to commitment and which
instruments or tools a company can use to create this connection. It will present
different strategies to develop the commitment of the human resources in order to
survive within the business environment. Due to the ongoing change in the business
environment, the skills gap will maintain. The gap is defined as a mismatch between
knowledge and skills acquired for example in school and the those which are
required in the current business environment. One way to narrow the gap is an
internal coaching, but therefore the training needs have to be identified. Due to a
compare between the job requirements like the necessary knowledge and skills with
those of the employee, the gab can be discovered and the right training method like
on the Job training, on-Site but on the Job training or off the job training can be
chosen. Examples for important competences are the ability to solve problems,
teamwork- and communication skills and firms need to continue to crate those skills
for their employees. Managing those differences and issues in the developed world
and further the recruiting function, will become a critical task for global firms in the
future (Human Resource Development, page 15-18).

The changing business environment
Low birth rates in the industrial nations associated with an aging population, tighten
the need for action done in the war of talents. On the long-run, employers need to
start grappling with the recruiting across national borders. Concerning the Global
Talent Study 2021, already 54% of the international college graduates are coming
from Brazil, China, India, Indonesia, Mexico, Russia and Turkey. Besides, only 46%
come from France, Germany, the U.K., the U.S. and the other developed countries.
The recruiting is just the first part in the chain. Following this trend of dealing with
global workers, the organization will be faced with managing the multiple cultures
inside the company in the future. Further, it also has to deal with different
generations, which tighten even more the difficulty of meeting everybody's needs
(Global Workforce Study 2012). As mentioned already in the beginning, technology
changing is one trend which can be identified. Following the process of a global
connected world, workers will need a variety of different skills in the future. According
to the Global Talent Study 2021, there will be a significant increase in particular skill
needs (Global Talent Study 2021). Starting with digital skills which refer to the ability
to use social media, followed by the ability of an agile thinking, which becomes
important due to a significant increase in managing complex scenarios in a cross-
linked world. Furthermore, interpersonal skills in order to perform in a team and
finally the ability of global operating, which includes the management of an
international market with different actors. Global operating is related to accomplish
diverse groups and to deal with the cultural differences (Global Workforce Study

Figure 1: Global heat Map which shows the gap between the growth in demand and the growth in supply
of talent, 2011 to 2021.
(Red indicates a trend deficit, green a trend surplus, yellow a broad balance. Numbers show trend growth as
annual percentages).
(Global Talent Study 2021, page 11)

Human Resources Development
As a company needs to change its processes and strategies in order to cut costs and
stay competitive, the employees also have to change in order to keep up with the
changing requirements of the business environment. The Human Recourses
Development is responsible to close this gab and consists of different components:
individual-, career-, performance- and organizational development. Individual
development is related to the acquirement of new knowledge and skills in order to
enhance the individual job performance. This process mainly happens due to
practical on-the-job trainings to ensure the success. Career development is basically
related to the future job requirements. Therefore it has to be analyzed which
interests, values, competencies an individual owns and are necessary to provide the
development. Performance management aims to the aspect that the human
resources dispose of the required knowledge and skills, motivation, and further, the
right environmental support to increase job effectiveness and job efficiency.
Organizational development focuses on creating innovative concepts which are
related to organizational inefficiencies. Therefore it needs to take the processes, the
mission, the policies, the culture, the organizational structure etc. into account. The
purpose is to increase the self-renewing ability and to ensure the competitive
readiness. This means the organization can strengthen their ability to explore its
weaknesses and allocate the available resources for advancement (Principles of
human resource development, page 14-16). All in all, the human resources
development has to ensure the development of the human resources due to different
methods like coaching and mentoring, which are explained in the next paragraph.
Before deciding which method appears to be the best, the people in power need to
identify and assess the needs (Human Resources Development, page 55-56).

Tools to face the change
Nowadays, coaching and mentoring became very important tools for the human
resources development. Mentoring can be seen as a relationship between two
participants with different levels of expertise and experience with the goal of
developing the skills and competencies of the less skilled individual. Normally a
mentor is person in an organization who has a higher level of responsibility. The role
of a mentor is to help their fosterling to develop in a professional and personal way
by explaining and supporting. Based on their personal experience the mentors share
their best practices of a successful career. It is a program created in order to develop
specific professional skills of the protégé which brigs benefits for the company and
the participants. Related to the personal or psychological support, the mentor
provides the fosterling with counseling for improving the self-image and competence
required for a management role. Generally, this relationship leads to a win-win
situation. The protégé benefits from the life wisdom and acquired knowledge. The
mentor gets satisfied by sharing his or her success and passion
Mentoring & Coaching Programs, page 3-8). Coaching can be described as a
process of learning and development to increase performance. In detail, coaching is
a process in which an individual, the coach, helps another person to solve a problem
by teaching different techniques of how to perform better than in their natural way.
Coaching is closely related to mentoring but they have some dissimilarities which can
be seen in figure 2 (Human Resources Development, page 115).
Figure 2: Differences between Coaching ad Mentoring.
an internal or external coach can be
mainly an internal employee
coach possess of different techniques
mentor possesses of his best practice based
on his experience
informal relationship between coach and
formal relationship because in many cases
the mentor is in a higher hierarchical position
in general a coach did a professional
his qualification is oftentimes his experience


Type of Edition
File size
644 KB
Institution / College
University of Applied Sciences and Arts Hildesheim, Holzminden, Göttingen
Publication date
2015 (November)
Leadership HRM People Management Human Resources War for Talent


  • Torsten Berkel (Author)


Title: The Importance of Leadership
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