The Internet allowed the entire globe to be connected. It did not, however, instill confidence in it. The presence of solid intermediaries aggregating power is due to a lack of trust in our society. The digital world cannot take over because of a lack of trust. Organizations suffer due to this inefficiency, as time, energy, money, and passion are squandered, ensuring that everything goes as planned.
In this situation, managers serve as intermediates, connecting specialists and instructing them on what to do. As a result, people’s involvement in our expert society is minimal since no one is there to encourage and empower them. In other words, our community is experiencing a remarkable absence of leadership.
However, when it comes to implementing blockchain technology in such firms, it is expected that the technology would usher in a revolution in the sector by automating numerous managerial processes and assisting executives in making more informed choices.
Let’s look at how Blockchain technology affects management and leadership.
Leadership and management
Management is described as the procedure of planning, organizing, directing, and controlling activities of employees in accordance with other resources to achieve organizational objectives. Finally, leadership is defined as a social correlation between two or more people who rely on each other to achieve specific mutual goals in a group situation.
So, in a sense, management is putting the leadership theory into practice.
People are a common aspect of both leadership and management. There will be no leaders or managers if there are no people. People are at the heart of leadership and management, and how effectively exceptional leaders and managers deal with the people they work with is an accurate measure of their abilities.
The Trust Factor
On the other hand, trust is a lifetime concern that has existed for as long as people have existed. Every human transaction necessitates the establishment of trust.
Any effective connection, both personal and professional, is built on trust, and once it is destroyed, it is exceedingly challenging to rebuild. When employees believe they can’t trust their bosses, they feel uncomfortable, as if no one is looking out for them, and they focus more on self-preservation and job-seeking than on their work.
A lack of confidence in leadership is a sign that the company’s culture is “toxic.” Nobody wants to work every day and feel like they’re entering a toxic trash dump. Employees will complete the task assigned to them, but they are unlikely to go above and beyond to assist in the creation of a high-performance company if they lack faith in leadership. Therefore, TRUST is one of the most critical aspects of leadership and management.
Trust is essential for leaders and the people they lead to work together effectively. Engagement and open cooperation are critical for building trust. People-oriented and technically competent leaders and managers enable others to work actively toward strategic goals. Openness and communication suffer as a result of a lack of trust. Reduced openness and communication result in a lack of creativity, agility, and adaptability to changing circumstances. This will affect profit margins.
How is Blockchain technology helping to bridge the leadership and management gap??
The internet era arrived, bringing the ability to link the whole world with it. It did not, however, instill confidence in it. The emergence of solid intermediaries aggregating power is due to a lack of confidence in our culture. As a result, organizations squander a lot of time, energy, money, and passion verifying what’s going on.
Thanks to Blockchain Technology, the trust gap is closing, which has given rise to a new platform for commercial relationships that combines ease of use, cheap cost, and excellent security. Moreover, it establishes a new foundation of confidence for corporate interactions, which might lead to significant economic simplicity and acceleration.
Value creation is reconfigured using blockchain technology, with professionals immediately working with one another and abolishing hierarchies. As a result, managers may become redundant as a blockchain infrastructure automates most work. As a result, the organization can only be kept together by robust and action-oriented leadership. This leadership-in-action would entail motivating individuals to take action and coaching members of organizations to ensure that their contributions are meaningful in the larger context of life.
There are several advantages to employing this type of technology, whether you are a small or large business. Blockchain has the potential to transform businesses. It provides several benefits, including higher security, transparency, efficiency, traceability, and transaction speed.Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.