Leadership and the pursuit of status: Effects of globalization and economic transformation

An analysis of the role of a respected social standing, or status, provides insights into the ways that globalization affects leaders' decisions to undertake organizational change. The review indicates that attaining high status entails advantages, with evidence that many will seek to attain and hold respected positions of social standing. Illustrative observations taken from a larger study of the effects of the transformation of Hungary's political and economic systems after communism suggest that the pursuit of status in differing social circles was a major factor differentiating those leaders who did not seek to make fundamental changes in their organizations from those who did so. These causes are examples of a larger phenomenon: Globalization has the effect of confronting executives from heretofore limited social environments, not only with economic losses to more powerful competitors but also to losses in their status as they come into closer contact with wealthier and more successful others who bestow respect for differing behaviors.