Public Systems Management
Public Systems Management
Public Systems Management
STUDENT ID:
LECTURER: MR CYRIL
Table of Contents
List of Tables..............................................................................................................................................1
List of Figure..............................................................................................................................................2
List of Acronyms.......................................................................................................................................2
1.0 Rationale of Assignment......................................................................................................................3
1.1 Background of Company....................................................................................................................3
1.1 BOM Special Measures.......................................................................................................................4
2.0 Leadership Scrutiny............................................................................................................................4
2.1. Importance of Leadership..................................................................................................................6
2.2 Leadership in the PS............................................................................................................................7
2.3 Leadership applied..............................................................................................................................8
2.3.1 Behavioural Leadership...............................................................................................................8
2.3.2 Situational Leadership.................................................................................................................9
2.3.3 Transformational-Transactional Leadership.............................................................................9
2.3.4 Entrepreneurial Leadership......................................................................................................10
2.3.5 Relational Leadership.................................................................................................................10
2.4 Leadership theories scrutinized........................................................................................................11
3.0 Leadership Applied at BOM.............................................................................................................11
3.1 SWOT Analysis..................................................................................................................................11
3.2 Ideal Leadership Style at BOM........................................................................................................12
3.2.1 Behavioural leadership...............................................................................................................12
3.2.2 Transformational-Transactional Leadership...........................................................................13
3.2.3 Relational Leadership.................................................................................................................13
3.2.4 Entrepreneurial Leadership......................................................................................................13
3.2.5 Situational Leadership...............................................................................................................14
3.3 Situational Leaders at BOM.............................................................................................................14
3.4 Recommendations to BOM leaders..................................................................................................15
3.5 Conclusion..........................................................................................................................................16
References................................................................................................................................................17
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Assignment: Leadership and Management
List of Tables
List of Figure
List of Acronyms
Abstract
The effects of the current coronavirus crisis are being felt in all sectors. Subsequently, the Bank
of Mauritius (BOM) is of no exception, whereby it is presently facing challenges on multiple
facades. Thu, mindful management can help reassure stakeholders, respond to their pleas, and
hence, ultimately earn their trust during this fickle period. Thus, this assignment helps to unveil
the most conducive leadership style which can be used at BOM, so as to cater for exceptional
measures to the fallout from this pandemic. Additionally, the results a SWOT analysis has been
used to propose some recommendations to the organization in scrutiny, so as attenuate the
reverberation of this deadly virus.
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Assignment: Leadership and Management
With the development of a unusual coronavirus in China, in December 2019, it did not take too
long for it to transform into a huge scope flare-up. By January 2020, the outbreak that happened
in China has now been termed as COVID-19 and has spread internationally. Thusly, OECD
pronounced Coronavirus to be the greatest peril to the economy in this century. Other than
causing death toll, the pandemic has likewise brought a financial emergency that will affect
societies for quite a long time ahead. The pandemic has demonstrated how unequipped countries'
medical care frameworks are to deal with significant crises with its absence of testing and
intensive care beds; lacking labor force; inability to provide the appropriate equipment. Besides,
the repercussions of the pandemic will be unforgiving on the Mauritian economy, to what extent
is too early to evaluate yet the recession we presently are confronting will be profound and
inconvenient. Mass joblessness is a danger and the GDP is gauge to diminish definitely. The
remarkable conditions that the infection flare-up brings upon us show how weak our society is as
signified by Chan Sun and Wah (2020)
To begin with, Mauritius is currently under the clutches of the pandemic Covid-19, and our
Island had been under lockdown since 20th March 2020 till 30th May 2020 as enunciated by
MCCI (2020). In this regard, numerous public sector (PS) corporations are collaborating with
the State and General Public to lessen the impact of this virus both upon our economy and lives
of Mauritians respectively. In turn, Bank of Mauritius (BOM) is working closely with its
stakeholders altogether, so as to mitigate the ramifications of this deadly virus upon our whole
nation. Conclusively, BOM has been chosen as the context of this assignment as it is playing an
altruistic key role in providing palpable measures to succour a myriad of households and
businesses impacted by Covid-19.
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Assignment: Leadership and Management
Notably, BOM`s leaders are striving hard to help our nation get through this upheaval.
Accordingly, the following measures have been implemented to decrease the repercussions of
this pandemic upon our island, as laid down by BOM (2020a):
2. Special Foreign Currency (USD) Line of Credit - The BOM is hosting a Special Foreign
Currency (USD) Line of Credit aiming operators having foreign currency incomes, including
Small and Medium Enterprises (SME).
4. Shared ATM Services - Amidst the national confinement period, charges applicable on shared
ATM facilities have been relinquished to allow consumers to have access to the ATM of any
bank irrespective of the card issuer.
On the other hand, Yukl, (2012) enunciate that it is crucial to distinguish leadership from related
concepts, for example, management, to dodge disarray between the two roles. Yet, leadership is
not generally inseparable from management. While leadership concerns change, motivation and
vision, the management is related with completing routine exercises, for example, planning,
budgeting, staffing and everyday exercises of the firm+. In any case, leadership and management
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Assignment: Leadership and Management
are not in every case unmistakably different. The roles frequently overlap (Northouse, 2013).
Once in a while, leaders could participate in management and managers can complete leadership
endeavours. Accordingly, leadership and management are particular yet complementary.
Furthermore, leadership assumes a significant part in improvement of a firm and
accomplishment of its objectives. The significance of leadership is apparent in the sheer number
of leadership theories that have been detailed over the most recent 40 years. This increasing
speed in leadership scrutiny has additionally prompted the improvement of leadership models
and leadership approaches, and documentation of leadership styles. Moreover, leadership is tied
in with focusing on sentiments where leaders give guidance via emotional support. Though
management takes course and control, leadership can be related with, for example, inspiration
and motivation, which can be identical to supportive practices. However, management is related
with more directive behavior, for example, controlling and planning (Northouse, 2013). In any
case, leadership is the point of convergence inside this assignment, and signs are that new
leadership styles accompany additional requirements, for example, to make coordinated effort
work inside the new methods of working (Dulebohn and Hoch, 2017). Thus, leadership has been
a field of study since Plato examined effects on rulers and the reactions of followers. Through
the course of history, leadership has been characterized differently, and even today, the meaning
of leadership and how it is obtained is exceptionally discussed and investigated. Subsequently,
Gyeltshen (2015) connotes that leadership exegesis unveils that, leadership means diverse things
to different scholars. Accordingly, leadership is unraveled in two broad senses: leadership as an
influence procedure and leadership as an action. Notably, these meanings may be distinctive or
may overlap (Refer to table 1). Moreover, Table 1 has been proposed in accordance with Figure
1, so as to better comprehend the different elucidations pertaining to leadership as laid down by
numerous authors.
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Assignment: Leadership and Management
Abrahamsson and Ollander (2020) postulate that leadership is an important factor for making an
organization successful. It is the art or process of influencing people to perform assigned tasks
willingly, efficiently and competently. Without leadership a line manager simply cannot be
effective. Leadership of the line managers transforms potential into reality. When good
leadership is in place in the organization, it can be felt throughout the entire organization. With
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Assignment: Leadership and Management
good leadership, organizational culture is not forced but developed. Communication is effective
and open. Everyone understands the vision and goals of the organization, and everyone has
input into how they can be improved. People feel that they are an important part of the
organization and they give their best for the success of the organization. Leadership is an
important function of management which helps to maximize efficiency and to achieve
organizational goals. In fact leadership is an essential part and a crucial component of effective
management. The authors also point that a remarkable leadership behaviour stresses upon
building an environment in which each and every employee develops and excels. It has the
potential to influence and drive the group efforts towards the accomplishment of goals. Line
managers must have traits of a leader. They must possess leadership qualities. With leadership
qualities line managers can develop and begin strategies that build and sustain competitive
advantage. Thus, an organization is considered to be effective if it finds the balance between the
demands of owners, employees, customers, community and the needs of the employees. The
leader plays a key role in the orientation and direction of the organization which is the one that
sets the vision and mission of the organization and others follow it. Therefore, an appropriate
leadership style influence and ensure the prosperity and the economic growth of both
organization and employees. Conversely, numerous researches have verified that most of the
failures in the organization have come from an incorrect direction that the leaders pursued to
achieve the objectives. What is important to study is the adaptation of the leadership style to the
structure and composition of the organization (Meraku 2017).
De Gennaro (2019) affirms that exercising leadership in PS organizations, is poles apart than
leading private organizations. One noteworthy point is the bifurcated organizational model
created by engaging elected and appointed officers, as well as senior leaders from the
profession`s bureaucracy at the managerial level of many public organizations. This pattern is
most distinguished in the federal level but also has imperative parallels in state and local
government. Thus, split leadership, joined with democratic accountability, oversight measures
created by courts and legislatures, and extreme media attention, generates an environment for PS
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Assignment: Leadership and Management
leaders that is inhibited in many intricate ways as enunciated by Alves (2013). Similarly,
funding is the key effective leadership challenge with resources, increasing competence, and
manpower scarcities in the PS as elaborated by Morley (2014). Yet, although the need to
cultivate PS leaders is progressively apparent, how this mission is accomplished is not nearly so
evident. Nonetheless, fundamentally all major organizations in the government upkeep
leadership development programs at some level; which operate with a leadership template or
model (Quinlan, 2014).
Subsequently, Harpe & Mason, (2014) posit that the last century has seen numerous paradigm
shifts in leadership knowledge, along much inquiry into it, resulting in abundant leadership
theories and models adopted by both public and private establishments. With the sustained focus
on productivity management, market mechanisms along with cumulative private sector
participation in the delivery of public amenities, Benz (2009) claims that PS organizations are
being fostered to study the business world for models of worthy leadership. Consequently, this
assignment shall restrict itself with the main five leadership theories which can applied in an
organizational setting, as proposed by Gyeltshen (2015);
Aldaibat (2017) stipulates that behavioural leadership accentuates the conduct of leaders in the
execution of tasks. This leadership model hypothesizes two facets of leader behaviour: task-
oriented behaviour versus follower-oriented behaviour. Whereas task-oriented behaviour
emphasizes on goal setting, training, predictions, directions and procedures for accomplishing
the job, follower-oriented behaviour yields a greater concern on followers such as displaying
respect, gaining trust, and being responsive, selfless and approachable. Yet, both orientations are
indispensable in an organization, surplus of either can bring antagonistic effects to an
organization. For instance, excessive task-orientation can lead to followers` abuse, and extreme
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Assignment: Leadership and Management
follower orientation can result in deadlines failure and ultimately non goal achievement (Rowley,
& Ulrich, 2012).
Likewise, Thompson and Glasø (2018) postulate that Situational leadership theory emphasizes
situational factors` prominence such as task nature, knowledge and aptitudes of the followers,
and any exterior factors. Situational theory emerged in the 1960s due to the incompetence of
behavioural leadership theory to cogitate situations as factors impacting leadership efficacy as
denoted by Rosenberg, (2016). Additionally, this theory assumes that; unlike situations require
altered leadership behaviours, circumstances place unalike demands, constraints & choices on
leaders and leadership is multifaceted. In sum, a leader’s behaviour is contingent on situational
forces, both interior and exterior, whereby the leader chooses one of the following mode: explicit
guidance and close monitoring (Telling), explanation and persuasion (Selling), sharing and
facilitating (Participating) or letting others do it (Delegating) as specified by Yukl (2012).
Antonakis (2012) posits that although transformational and transactional are distinct leadership
theories, they are often illustrated as one. At the focal point of transformational leadership is the
notion of higher order transformation, ranging at both personal and organisational level.
Additionally, transformational leaders encourage followers to partake the organisation’s vision,
providing by enabling them through individual care, and providing them with a sense of
belongingness towards the organization. Furthermore, transformational leadership incorporates
the rudiments of charismatic leadership, whereby charismatic leaders display inspirational
influence that outcomes in ardent and extraordinary impact on the followers, which results in
unswerving loyalty and fervour (Liden & Antonakis, 2009). Like charismatic leaders,
transformational leaders motivate members through flawless spur and stimulate them through
inspiring motivation.
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Assignment: Leadership and Management
Conversely, Fiaz, Qin, Ikram, & Saqib, (2017) postulate that entrepreneurial leadership
comprises unifying and inspiring a group of individuals to attain a common objective through
novelty, risk optimization, taking advantage of prospects, and handling the vibrant organizational
setting. Additionally, entrepreneurial leaders have a sturdy motivation to make a transformation
and strive with determination and buoyancy (Currie, Humphreys, Ucbasaran, & McManus,
2008). These people look for chances to pave their own path, despite stalwart dominant
organizational control. Thus, by forging their own trail, impels these people to link with the
wider political and social tendencies as presaged by Benz (2009).
Northouse (2013) postulates that relational leadership considers the prominence of the relations
between leaders and members for the attainment of a group’s or organisation’s objectives.
Moreover, relational leadership highlights leaders’ and members’ social and private interactions
more than an official leader-member affiliation in which leaders in authority give commands and
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Assignment: Leadership and Management
the followers’ role is to conform (Uhl-Bien, Maslyn, & Ospina, 2012). Furthermore, this
leadership tactic insists on group vigour, which leads to a better usage of resources for excellence
in products and services, enhanced decision-making and problem solving, and grander
innovation and creativity (Muyzenberg, 2011).
Amidst all the five theories perused, entrepreneurial leadership is starting to mark the PS (Leitch
& Volery, 2017). Similarly, (De Gennaro, 2019; Benz, 2009) have noted that there is upsurge
evidence of innovative or entrepreneurial leadership behavior by staffs located at all levels of
public establishments, and this prodigy has been allied with enhanced PS efficacy. Thus, in line
with the leadership pattern of government strategy, leaders of PS organizations are anticipated to
be more business-like, including demonstrating entrepreneurial leadership features (Currie et al.,
2008). Within this policy framework, PS officials are being placed as leaders that operate within
a quasi-market surrounded by performance indicators. Consequently, the aim of the PS leader is
to uphold and augment the reputation of their organization as judged by government-set
performance gauges, which are published, league tables or annual reports (Allen & Lachapelle,
2012; Uhl-Bien et al., 2012).
Note: This section scrutinizes the most germane leadership style, which will be most practical during this moment
of crux at BOM. Furthermore, this segment surmises that leaders have substantial power to take appropriate
decisions according to the current situation.
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Assignment: Leadership and Management
As unraveled earlier, the prevailing situation faced by our whole nation, necessitate leaders at
BOM to adopt a proactive attitude rather than a reactive one. This is why, the most pertinent
type of leadership style needs to be applied during this period. However, before embarking on
this, a SWOT analysis needs to be conducted so that, the pertinent issues come to limelight,
enabling the leaders to act accordingly (refer to table 2).
Strength Weakness
Well capitalized and profitable banking sector Mauritius national debt escalates (66.25% of Mauritius
GDP in 2018)
Supports growth while limiting foreign debt Postponing much-needed investments in risk
management and infrastructure
Highly literate, bilingual and friendly workforce Trapped in a cycle of stagnant growth and mounting
debt
Threats Opportunities
Public Debt is expected to increase The State is adopting a coordinated economic response
Less income expected from Tourism and Textile sector International Monetary Fund (IMF) is expected to take
a lead
The crippling of retail and consumer businesses may Domestically, this situation could be used to restore
deteriorate into bankruptcies faith in government
As discussed in the earlier sections, Mauritius was under lockdown since almost three months
with severe ramifications upon the economy, thus BOM needs to act swiftly, so as to use its
strengths and opportunities to mitigate its threats and weaknesses respectively. As such, a
conducive leadership style needs to be applied to this setting. As such, the leadership styles are
reviewed accordingly.
Behavioural leadership is segregated into task versus follower oriented, that is, either a leader
can be autocratic or democratic. Nonetheless, here both methods are used to reach a common
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Assignment: Leadership and Management
goal, which is to strive towards customer satisfaction in a myriad of ways, and ultimately be a
profit maximizing organization. Thus, under this leadership style, BOM leaders would have to
focus on the issues of efficacy and transformation. This is, because their main duty is generate
new financial services that can contend with their worldwide competitors with the resources in
hand. Yet, these strategies may not be conducive with the prevailing crisis at BOM.
Relational leadership is based on valued connection and being open to divergences. Thus, this
leadership style predicated on empathy and non-judgmental towards others. Hence, being a top-
down approach and personal by nature, BOM can definitely benefit in the long run, through this
style. Thus, BOM leaders` can be incredibly successful, particularly when they are authentic,
empathetic, strengthened through gestures of altruism and putting other`s needs before
themselves. As a result, this style may definitely work in favour of BOM and its stakeholders,
though it would not be adequate.
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Assignment: Leadership and Management
Just, like task oriented approach, entrepreneurial leadership is more about extracting maximum
efficiency by toiling hard towards company`s objectives as well as thriving in world of hasty
change and extreme competition. Likewise, entrepreneurial leadership concept, which is based
on self-sufficiency, ingenuity, efficiency and risk taking is not presently needed in this setting.
Thus, an entrepreneurial leader would not be propitious at BOM during this period of crisis, as
there are also no entrepreneurial opportunities to be exploited and for apparent reasons.
With situational leadership, the leader to variates his/her style, to meet the needs of others in the
organization based on the situation. This approach acknowledges that no leadership style is the
best, thus the leader diagnoses a setting and then felicitous actions are implemented. Thus, the
adaptive approach of this style would definitely benefit BOM in such times. Thus, a situational
leader at BOM would give the stakeholders exactly what they need and when they need it. And,
thus this would help in achieving the aims set by BOM (elucidated earlier) during this passing
phase. As, this is a period in history where leaders must be more like partners rather than like
bosses. Thus, a situational leader would undeniably be able to choose the right leadership style
for the right individuals at the right stage.
Likewise, as described earlier situational leadership is an adaptive leadership style that best fits
organizational goals and environs. Thus, as per BOM (2020b), the situational leaders at BOM
specifically created the series of measures to upkeep Mauritian households and businesses stuck
by COVID-19 (refer to table 3).
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Assignment: Leadership and Management
Notably, as per the leadership styles scrutiny, BOM leaders should adopt a situational style in
this period of national confinement. This will ensure that proper remedial actions are taken
accordingly which are in accordance with the aims set by BOM. Consequently, BOM leaders
may adopt the following recommendations, hereby helping to alleviate the threats and
weaknesses unveiled in the SWOT analysis. Yet, there is much that should be done
instantaneously. BOM, supported by the state, should offer discounted loans and upsurge their
tolerance of late reimbursements by businesses that are under the menace of bankruptcy because
of the absence of supplies or consumers, or because of late instalments by creditors.
Additionally, reporting requirements in key areas, such as liquidity and creditor positions, are
enhanced in a crisis. Thus, BOM should encourage uninterrupted communication among banks,
especially in this unprecedented working condition with colleagues, supervisors and customers
remotely respectively. Conversely, BOM may have to conceive for more adverse circumstances,
which could crop later this year. Thus, under more severely strained conditions, some banking
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Assignment: Leadership and Management
structures might have to be recapitalized or even reorganized. Thus, IMF must be ready to step
in, as it has a profound experience in assisting countries rebuild distressed banking organisms
through its technical backing programs. Conversely, Tugba & Tugce (2015) connote that leaders
must display these three behaviours in a crisis situation:
1. Assume and exhibit accountability by inspiring and motivating others to steer complex,
interrelated structures. This is done in three ways
Face head-on the challenge through cognizance on values and public support
Acknowledge the degree of the predicament and emphasis on the subsequent best
decision
Build relations and rely upon followers to partake the encumbrance together
3.5 Conclusion
BOM has inevitably been affected by this virus outbreak as it is impacting both fiscal markets and
customer behavior as never before. This is why BOM should continuously create new policies and
structures in accord with the prerequisites of the new unstable economy and to face new
opportunities and challenges. And thus, countless have lost jobs, seen their revenues evaporate,
and are in panic of loan defaulting or missing mortgage expenditures. Industries, too, are in need
of additional assistance as many have seen their income drop radically or dry up completely.
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Assignment: Leadership and Management
And a matter of fact, no wall has proven so high enough to ostracize these threats in our nation,
which even mightiest countries are succumbing to. Nonetheless, the greatest peril our nation is
facing, rises not from any of the distinct systemic risks. Rather, it is due the lack of willingness
to collaborate with others to resolve these quandaries. Hence, during this period, our nation
should be interdependent with other developed countries to seek help and ultimately sustain our
economy. Last, but not the least, it can be affirmed that united we stand, and divided we fall.
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Assignment: Leadership and Management
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End Of
Assignment
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