Leadership in organisations during post-recession period Essay

Leadership in organisations during post-recession period - Essay Example Furthermore, there are predictions that in the next 5 years the rapid economic growth of China would suffer a major setback, while some expect India and Brazil to face similar economic slowdown at the same time. Increased globalisation in finances and trade has led to increased integration, which in turn has acerbated specific economic conditions globally, creating greater challenges for business firms. The main challenges for organisations arising from the current economic crisis are: Achieving success in developing economies is not as easy as before and making profits from fast growing markets is increasingly turning more difficult as costs are increasing, there is greater competition, and even the fast developing economies are now slowing down owing to global recession (Ernst & Young, 2011); Divergent markets: Owing to globalisation, as the organisations enter markets having different business culture and environment and varying prospects they tend to face various challenges assoc iated with increasing functional and management complexities (Ernst & Young, 2011); More importance are being attached to dynamic policies, which are largely unpredictable, shows a sign increasing protectionism is creating serious challenges for the organisations. Business firms are also expressing increasing concerns over sharp increase in taxes as governments try to acquire greater revenues to make up for the public fund deficit (Ernst & Young, 2011); Talented people and specialised workers are becoming increasingly difficult to find. Organisations all over the world are finding it increasingly difficult to locate the right candidates and there is scarcity of good leaders and specialised workers (Ernst &... Leadership in organisations during post-recession period A few years back when large companies faced the prospect of losing their stronghold within the arena of domestic markets, they simply searched for fast developing economies in order to make higher profits. Currently, owing to widespread economic globalisation and the looming financial downturn, there is a significant slowdown in economic growth, rise in stiff competition, increase in operational and management complexities and a significant shortage of skilled/specialised workers within key markets, which is turning into a major challenge for various business organisations. Many of the experts have predicted a fresh economic downturn by the end of 2012 primarily initiated by debt defaults in Eurozone (Ernst & Young, 2011). Furthermore, there are predictions that in the next 5 years the rapid economic growth of China would suffer a major setback, while some expect India and Brazil to face similar economic slowdown at the same time. The challenges faced by the organisations during recession makes it necessary for one to take into consideration the various leadership and negotiation skills that are necessary to steer business firms through the difficult period and prepare them for an economic upturn. In this context, some experts have contended that favourable economic conditions create a management and operational environment that is lax in nature, which is tightened up during economic recessions.