Introduction
Management of a unit is a complex issue requiring increased attention to various aspects to guarantee it evolves and overcomes various barriers. For international organisations, the scope of tasks increases significantly, meaning leaders must resolve complex tasks and align interactions between employees from various units and teams to attain high-performance levels and achieve the existing goals. Under these conditions, the choice of leadership and management styles, along with the approach to motivating employees and enhancing performance, acquire the top priority. Companies might employ specific management structures and models regarding the peculiarities of their work and expected outcomes. Thus, Alibaba Group is one of the leading modern companies in e-commerce, retail, and technology. Its analysis can help to realise the importance of various approaches to management and leadership and how various theories apply to real-life conditions and positive outcomes.
Background
Alibaba Group is one of the most powerful and fast-evolving multinational companies nowadays. It was established in 1999 with the belief that the Internet would play a crucial role in commerce, enabling small enterprises to find their consumers globally (Culture and values, n.d.). This vision helped the organisation to evolve and transform into one of the most potent players globally. Currently, it is one of the world’s largest retailers and e-commerce companies with the sixth-highest global valuation (Li and Li, 2022). In 2021, the company’s ecosystem will comprise around 1.280 billion clients worldwide (Li and Li, 2022). These facts indicate the sophistication of the company’s internal structure and processes that should be controlled to guarantee enhanced outcomes. For this reason, the choice of managerial and leadership approaches is fundamental for Alibaba’s further development and preservation of leading positions.
Organisational and Management Structure
The effective work of an organisation depends on the management structure and its ability to meet the current demands. It can be determined as the approach to establishing and organising the management hierarchy within a unit (Northouse, 2021). Considering the complexity of its daily operations, Alibaba focuses on establishing and cultivating an agile management structure (Alizila Staff, 2021). It means that most decisions should be made in place by local managers and leaders. At the same time, the company has a unique governance structure as its board is appointed by Alibaba Partnership, consisting of a limited number of individuals (Fried and Kamar, 2020). It leads to the establishment of a specific hierarchy within a company:
The figure shows that the company has a strict hierarchy as decisions about the company’s future evolution are made by the Alibaba Partnership group appointing members of the Alibaba Board (Fried and Kamar, 2020). Its members are responsible for selecting division members, which impacts the work of the whole company. Top managers have numerous employees that might be provided with specific tasks and the degree of autonomy necessary for their practical work. This approach helps to effectively control critical operations and, at the same time, introduce appropriate changes when necessary. At the same time, it shows the critical importance of leadership as the framework for making correct decisions regarding the agile approach.
Leadership
In such a way, Alibaba’s success is, to a greater degree, linked to successful leadership. The term can be determined as the process of motivating and organising employees to act towards achieving a current goal (Northouse, 2021). At the same time, the choice of approach to inspiring and managing others depends on the current situation and the organisation’s peculiarities. Thus, Jack Ma, one of Alibaba’s group’s founders, moved from the autocratic leadership style to transformational and servant approaches, which also became part of the company’s organisational culture (Putri, 2022). According to Burns (2010), transformational leadership is a process implying that leaders and followers help each other to attain higher levels of morale and motivation. It also implies that top managers develop employees as individuals, professionals, and future leaders (Ellen, 2018). The approach helps to attain higher levels of flexibility due to the increased competence and outstanding skills among employees (Ellen, 2018). At the same time, servant leadership approaches help to align the enhanced interaction with employees and ensure they feel satisfied with their work and contribution (Northouse, 2021). Combining these approaches, the company builds high-performance teams and guarantees they succeed.
Moreover, global companies characterised by the developed infrastructure critically depend on the collaboration between workers in various departments. It means that the theories of contingency leadership might be applicable to corporations such as Alibaba. The model implies that effective leadership depends on the peculiarities of the situation present at the moment (Chance, 2009). Regardless of the already employed approaches, companies will always face situations challenging them (Chance, 2009). It is crucial for international corporations because of the fast-changing conditions of global markets. Under these conditions, contingency leadership focuses on cultivating strong workplace relationships to use them as the basis when responding to a particular threat (Hersey, Blanchard and Johnson, 2012). For instance, Alibaba’s focus on flexibility and agility, along with the transformational leadership approach, contribute to the increased availability of numerous tools. Moreover, the company employs the Hersey-Blanchard model, assuming that it is necessary to adjust to complex situations to acquire better outcomes (Hersey, Blanchard and Johnson, 2012). As a result, the corporation has effective company management models and can overcome challenges.
Management and Leadership Styles’ Impact on the Culture of Organisations
Furthermore, speaking about leadership and management styles, it is possible to admit their critical impact on the culture of organisations and the way interactions between employees are aligned. Thus, the term can be defined as a set of values, expectations, and practices guiding and informing the actions of all team members (Schein and Schein, 2016). The organisational culture is established at the first stages of the company’s evolution and serves as the basis for its further development and growth. It also correlates with leadership styles as they outline the frameworks for interactions. For instance, Alibaba builds a respectful and diverse organisational culture to ensure all workers in various departments can feel secure and contribute to the company’s development (Alibaba Group Holding Limited, 2022). It becomes possible due to the adherence to the central ideas of transformational leadership, which encourages cooperation and interaction, as well as sustainable behaviours and mutual support (Alibaba Group Holding Limited, 2022). In such a way, the company’s commitment to specific managerial approaches and leadership styles impacts the establishment of a particular organisational culture.
Leaders should also adapt to the current environment and companies’ peculiarities. Flexibility is one of the key elements of an effective leader as it helps to adapt to the situation within a firm and respond faster. According to McGregor (2006) and his theory, people act regarding their premises and assumptions regulating their behaviours. It shapes the culture within organisations as the existing ethical code and values outline the framework for interaction between specialists and their possible responses to specific actions (Schein and Schein, 2016). In this regard, transformational leadership helps to cultivate a positive culture within the company and make all workers part of the decision-making processes (Schein and Schein, 2016). It contributes to higher levels of effectiveness while working with complex tasks and trying to resolve them. Moreover, the diversity of opinions is a central factor helping companies to evolve and generate a competitive advantage. In such a way, leadership styles are directly linked to the culture within a company and its ability to evolve.
Performance Optimisation
Optimisation of performance is another critical task of effective leadership. For instance, Alibaba’s top management views continuous improvement as a fundamental part of the company (Alibaba Group Holding Limited, 2022). For this reason, its CEOs are tasked with monitoring teams’ performance levels and introducing changes when necessary to ensure employees are motivated to continue working (Alibaba Group Holding Limited, 2022). Thus, motivation is one of the core elements of performance and its optimisation. Following Maslow’s hierarchy of needs, individuals can perform best when their fundamental demands are met (McLeod, 2023). It means that an employee should not have a fear of being unable to feed his/her family or of being unable to pay for shelter. Fulfilment of these needs will lead to the emergence of the desire to self-actualise and move forward, helping the company (Maslow, 2013). This idea is central to building a compelling motivation and performance optimisation strategy.
In such a way, both financial and non-financial aspects and rewards for performance should be introduced to attain higher employee engagement levels. The recognition of the workers’ contribution should be supported with bonuses and additional payments. At the same time, the most effective and devoted specialists should have the chance for promotion and performing more complex jobs, as it is vital for satisfying their self-conceptualisation needs (Aguinis, 2018). Furthermore, for big international companies such as Alibaba, it is vital to encourage collaborative team working, creativity and innovation to create a performance-oriented culture (Wang, 2020). Innovative companies acquire a competitive advantage helping to overcome rivalry and hold leading positions (Wang, 2020). For this reason, unconventional solutions offered by employees should be appraised and encouraged by top management. For instance, Alibaba has specific variable-pay programs rewarding employees for best performance (Alibaba Group Holding Limited, 2022). It leads to their higher involvement and commitment, which is vital for the further rise.
Improvement and Leadership
Finally, continuous improvement is one of the primary leadership and management functions necessary for organisations’ rise. It implies that a company should constantly analyse its performance and reconsider existing approaches to ensure that new peculiarities of markets are considered (Aguinis, 2018). Otherwise, there is a high risk of failure because of stagnation and reduced effectiveness of used methods. Transformational leadership approaches devote much attention to managing performance in ways ensuring the company’s improvement. For instance, by supporting employees with resources for their personal and professional development, leaders create the basis for their growth and becoming more valuable for companies (Aguinis, 2018). Moreover, higher engagement levels peculiar to transformational leadership promote an enhanced understanding of the necessity of change and reduce the fear of uncertainty because of the possible alteration (Aguinis, 2018). As a result, effective leadership can create the basis for continuous improvement.
The practical performance management models might also require aligning communication with employees. Two-way discussion and supportive feedback can be the factors helping to create the framework for discussing the current issues and their better resolution (Aguinis, 2018). It might be organised regarding the transformational or servant leadership models as they imply close cooperation with employees and their involvement. For instance, as part of its organisational culture, Alibaba Group motivates employees to share their feedback and vision of the current situation and factors that might slow down the company’s evolution (Wang, 2020). It contributes to the diversity of opinions on what measures to employ to create the basis for the further company’s evolution and growth. Moreover, the approach can help to handle business situations requiring immediate action. Collaborative discussion and communication will help to offer an effective solution and avoid critical outcomes.
Conclusion
Altogether, effective leadership and management strategies are fundamental to the modern business world. They help to align interaction with employees and guarantee they are engaged and motivated. Alibaba Group’s example shows that the organisational structure should be aligned with leadership styles and methods to work with specialists. Employing transformation and servant models, the company’s top management establishes trust and supportive relations with its staff, which is vital to attaining higher performance levels. Moreover, performance management requires impacting employees’ motivation levels. Appealing to Maslow’s theory, it is necessary to satisfy workers’ basic needs to guarantee they are ready to engage in personal and professional development. By considering these factors, Alibaba Group creates the basis for its stable development and preservation of its leading positions globally.
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