Suitable Leadership Styles in the VUCA Era Affecting Organizational Effectiveness
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Abstract
This study examines appropriate leadership styles in the VUCA era (Volatility, Uncertainty, Complexity, and Ambiguity) and their implications for organizational performance. The objectives were to analyze suitable leadership models, examine the impacts of leadership styles on organizational effectiveness, identify reinforcing factors and propose guidelines for leadership development in the VUCA context. A qualitative research design was employed through an extensive review of documents, empirical studies, and academic articles. Data were synthesized through categorization and content interpretation. The findings reveal that appropriate leadership styles in the VUCA era include transformational leadership, distributed leadership, and flexible leadership. These styles enhance adaptability, creativity, and teamwork. Moreover, key supporting factors are having a clear vision and the flexibility to adapt quickly. Guidelines for developing leadership in the VUCA era emphasize communication, problem-solving, decision-making, and cultivating a learning culture. It is recommended that organizations should focus on developing visionary leaders with flexibility and a strong learning culture, supported by agile systems. Additionally, driving organizations with data and digital technologies can enhance accurate and rapid decision-making while reducing risks from uncertainty.
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