Temasek Holdings is a large investment company based in Singapore. It is an active participator in the investment game, holding shares and investments in a broad range of industries all over the world. As with many companies all over the world, Temasek Holdings was affected strongly by the Global Financial Crisis, losing more than 30 per cent of the value of their portfolio (Schmermerhorn, J. Davidson, P. Poole, D. Simon, A. Woods, P & Chau, S.L. 2011). Temasek’s CEO Ho Ching has been criticised for the investment losses that occurred during the economic crisis, and must now lead the company through the increased turbulence that has been presented to them. In doing so, a potential issue that Temasek Holdings is currently facing is one of leadership. If correct management processes regarding leadership are not applied, the company could face even worse consequences. To ensure that leadership does not become an issue, Ho Ching must apply effective leadership techniques to Temasek Holdings. This report will investigate various leadership options, determining an adequate approach to leadership that will assist this company in being successful in the future. Two leadership models will be assessed in-depth. It is expected that both will assist the company in continuing in the long-term, however one option will be more suitable and beneficial to Temasek Holdings.
2.0 Literature Themes or Arguments
As Temasek’s CEO has recently come under fire for her stability in leadership, it is apparent that a change must be made in the way the company is managed if they are to successfully remain with the same CEO. Leadership is fundamental in regular circumstances, but it is even more essential to the business through periods of instability, making it vitally important to the livelihood of the company to apply appropriate management procedures. It is impossible for a set of specific characteristics to define whether or not someone is a good leader, however some certain personal traits have been identified as being common among successful leaders: drive, self-confidence, creativity, cognitive ability, business knowledge, motivation, flexibility, honesty and integrity. (Schmermerhorn, J. Et al. 2011). Vision and power are also vital to good leadership; however all of these things are not achieved in the same way.
Many different behavioural theories have been produced in an attempt to define good leadership styles. A widely used model of management is Fred Fiedler’s contingency model. Fiedler’s theory looks at matching various types of people to various situations, somewhat of an either/or concept. It is based on the fact that someone’s style of leadership is personality-based, thus making it difficult to change. Rather, the Fiedler model suggests putting people of specific leadership styles with situations that match that style, rather than trying to change their personal leadership style, to achieve success (Wang, Victor C X; Berger, Jim 2010, pg. 6).
Fiedler classifies people into two leadership styles: relations-orientated and task-orientated. Relations-orientated people are defined as “a person who is motivated to seek prominence in interpersonal relations, who is concerned with good relations with others, who is considerate in his interaction with group members, and who tends to reduce anxiety and increase the personal adjustment of his co-workers,” (Hill, Walter. 1969, pg. 34) whereas a task-orientated person is characterised to be someone who “rejects those with whom he cannot work, and obtains need gratification and self-esteem from performance of the task. He is, therefore, concerned with performing the task and he is willing to relegate interpersonal relations to a secondary position” (Hill, Walter. 1969, pg. 35)
Exhibit I (Hill, Walter. 1969, pg. 36) above shows how relations-oriented and task-oriented people are determined, through leader-member relationships, leader position power and task...