If an organization tends to be successful, leadership and governance are the vital components. Leadership is an impact that a person has on others as they provide him support in completing a certain task. Governance sets up the goals, appoints responsibility and looks over the process of achieving the set of goals. The two components are hand and glove in the effective functioning of organization and both necessary to achieve set and required objectives (Angelidis & Ibrahim 2004).
Governance and leadership are shown as the key issues in human sustainability. Organizations these days rely on human and intellectual resources to achieve and prolong good results and it is vital for them to be sure in human sustainability. They watch if the job meets individual needs and interests and take care of the balance of employees’ requirements with the job targets, providing all the necessary attention to the both sides. Relationship among workers and their employers changed because of communication and information technology. Employees are more interested in the job satisfaction and benefits they derive from their employment rather than in the security of their jobs and loyal relation. That means that organizations have to find suitable equity between set goals, smooth running and gaining profits while ensuring human sustainability. Human sustainability and employees’ satisfaction on the work place can be achieved through the good governance and leadership.
Todnem (2005) argues that effective management of sustainability and upcoming changes the organization’s need to have a long-term review of its structure, set up course and abilities if it wants to cope with dynamic demands, and quick changes of internal and external environment. Clear understanding of the desired place in the future can help organizations to choose their path that will manage the change it experiences, improve its abilities and sustain human resource.
An illustration how organizations have greatly changed over the years and brought those changes into the nature and society with them is found in Organisational Change for Corporate Sustainability: A guide for leaders and change agents of the future (Durphy, Griffiths & Benn 2003). The question is if there is a need for organizations to undergo vast changes to ensure they do their best for the wellbeing of the earth, surviving ability of people and other life forms and creation of the working environment where a worker will be healthy, feel satisfaction and will be honored.
Poverty and vulnerability of ecosystems, climate change, and depletion of resources are the issues that put organizations in the situations when they need adjusting their attitude to thinking of and reacting to sustainability. The leaders of some largest world’s organizations have taken the principal role in rearranging their organizations as the answer to the social values and sustainability. The need in great leaders and good governors, who can maintain the changes in the organizations, focused on future goals and able to control and respond to the dynamic changes in the world, has hugely increased. They will need to have the natural ability to ensure the balance and effective relationship between the organization and humanity.
While changing organizations undergo different levels. Smith and Rayment(2010)say that there are three steps to change leadership in the organization. The first issue being changed is the decision making process, concentrating only on the outcomes as the only motive. They need to understand the part they are taking in changing the future of the humanity along with focusing on ethics, integrity, and global issues. So leaders need to keep in mind they have the support from the staff they are administering and that employees can generate ideas. It will change the organization’s performance and the overall change will be much better. The second step lies in understanding that it is unethical for organizations to rely on resources and leave the consequences to the society, rather than taking some steps in understanding social requirements to the issue and adding something to the development of the society. The good governance and leadership can coordinate measures and mechanisms that will deal with the negative results of exploiting the resources. The final step is to look at the monopoly and competition as a healthy environment from national or social point of view. Solving the issues for the common good would develop unity, efficiency and effectiveness will be gained by sharing the resources (Alvesson & Wilmott 1996).
The occurrence is one of the characteristics of change (Todnem 2005). Changes can occur continuously or discontinuously. The first one is when the organizations have a long-term monitoring of their activity and internal/external environment and react to it with small, precious steps. It is an ongoing process which is aimed at the stability of the course that the organization has taken to achieve its goals. On one hand, it is impossible for an organization to make a continuous change and preserve the stable and good performance at the same time, and it makes routine healthy. The change can transform in routine in the long run and such long-term changes have more advantages like being less in price and much more effective than a discontinuous change. On the other hand, the discontinuous change can be better due to the size and width of the separate initiatives which appear in different periods leaving huge time gaps with nothing happening during them. The clues to stay on the way come with the latter. It gives leaders the chance to take a closer look at the upcoming changes, so they can rearrange the try out and limit the resources needed for the continuous change (Eagly & Karau 2002)
The category of change also includes the understanding of the basis of the process which led to the change (planned or emergent). The planned change comes out when the organization is not satisfied with its position, but clearly understands the desired one. The strategy of the change lies in taking well-considered steps to change from the unwanted position to the attractive one, which will give benefits and increase effectiveness in the organization operations (Jones n.d.). The emergent change is beyond the control of the leaders or the governors of the organization. Involving all the people in the organization, it does not have any plan or rely on management and appears because of uncertainties in the company. Employees can get a better understanding of other people’s roles in the organization and achieve better knowledge of the whole organization and its functional changes (Emergent Change 2013).
Good leaders are the vital component if the company wants to have effective governance. Good leaders have to be people who understand and care about the health of the organization and human sustainability. Ethics, virtue, and morals are required by the society and organizations that are striving for improvement and obtaining the leading role in the world. Good leader must be flexible and always be ready for the necessary changes in the organization to stay on the path and increase wellbeing.