Consider two hypothetical countries. In Country A, 27% of the labor force is unemployed for four months a
year. In Country B, 12% of the labor force is unemployed for nine months a year. Note that both countries
have an overall unemployment rate of 9%.
Discuss which of these countries seem to have a more serious unemployment problem and explain why.
In the late 1990s, the federal Minister of Finance announced that expenditures would rise, yet he still
predicted that the budget surplus would increase. How is it possible that in the face of rising expenditures,
the budget surplus may increase? Under which conditions might this happen and what is the likelihood that
tising expenditures will contribute to rising deficits?
This essay will discuss the impact of leadership on businesses. Leadership concepts can be categorised into three main theories. Transactional leadership which is mainly applied in a relatively stable situation, Transformational leadership which can be well used in an atmosphere where big changes have happened and contextual leadership which is used in a constantly changing and chaotic situation. Therefore the main difference is the environment within they function. Good and effective leadership has many details which are going to be described trough appropriate academic theories. Leadership has many aspects such as attitude towards objectives and operations or representation of the company. All of these aspects link together in order to achieve competitive advantage. Probably the most important factor is the influence of leadership on other members of the business, particularly on the followers. The main body of the essay will investigate how leaders’ behaviour and attitude navigates the company trough controlling employees. There are many opinions about which extent leadership describes a pattern of behaviour, a bundle of personal characteristics or its role fulfilled in a group. This part of the essay will give a better understanding of these criteria, however it must be pointed out that there is not a perfect answer for that, because of the waste number of academic arguments on this topic. “In its essence, leadership in an organizational role involves (1) establishing a clear vision, (2) sharing (communicating) that vision with others so that they will follow willingly, (3) providing the information, knowledge, and methods to realize that vision, and (4) coordinating and balancing the conflicting interests of all members or stakeholders. A leader comes to the forefront in case of crisis, and is able to think and act in creative ways in difficult situations. Unlike management, leadership flows from the core of a personality and cannot be taught, although it may be learnt and may be enhanced through coaching or mentoring.” (www.businessdictionary.com) The popular view is that it does matter who is in charge, leadership quality determines the performance of the group and poor group performance can be overcome by leadership. A group of people is capable of working on their on, but only in a limited extent. Sooner or later one or more individuals will arise from the team because they think differently or imagine the solution in other ways. External factors will also cause the team to change in structure, for example someone has to represent the group and it is also necessary to monitor the tasks, consequently a member has to take responsibility. Without an appointed leader the management would be extremely difficult in an organisation. Living examples are all around us, the parliament, educational institutions, and successful businesses – all with appointed leaders. There are some; however who believe in contrary view and argue that it does not matter who is in charge because there is no real power (Chester Bernard) and that there are few differences between leaders and followers. (Skogdill 1949, Mann 1961) The contingency theory explains that the effectiveness of leadership depends on situation and Pfeffer (1978) argues that the group performance is determined by factors beyond the power of the leader. However the belief in the importance of leadership gives us comforting illusion of control. The theory further explains that there is not a best way to lead and in certain new situations the well developed leadership style may not be successful. This may result in certain very successful leaders become ineffective when they are “transplanted into another situation or when the factors around them change.” (www.snc.edu) This statement refers to how great leaders who were very successful made wrong decision when the business changed. A good example is Jurgen Schrempp and Robert Eaton, the CEOs of the Daimler-Chrysler merger. Both of them were >