Self-Leadership Influence on Individual Performance in a VUCA World

Introduction

In the 20st century Peter Drucker (1993), predicted the advent of the “knowledge society”, marked by democratization of information, specialization, and globalization. This paradigm shift has given rise to the “VUCA World” (Volatile, Uncertain, Chaotic, and Ambiguous), characterized by rapid transformations in various aspects of life.

The digital revolution and global interconnection, driven by the internet, have facilitated exponential access to knowledge and instant communication through social networks. In this context, concepts such as artificial intelligence, the internet of things, data analytics, robotics, and hybrid workforce emerge, reflecting the complexity and speed of changes in the current world (Kok & Van Den Heuvel,2019; Shet & Pereira,2021)

Driven especially by globalization and technological changes, the VUCA World brings great challenges in company-employee relationship caused by the appearance of new labor relations, hiring processes and new types of organizations, which impact the labor market whose main challenge is the talent recruitment, retention and performance.

Generational diversity and the pace of changes demand new competencies from the human talent, and hence, organizations that fail to adapt to these new circumstances will impact individual and team performance in the business world (Fauth, Bevan & Mills, 2008).

According to the “State of Global Workplace 2023 report”, globally, only 31% of employees exhibit a high level of work engagement, while 59% of employees are minimally engaged and perform their task at a low level. The remaining 11% are completely disengaged and actively seeking employment elsewhere. This low level of engagement on a global scale incurs a cost to the global economy of approximately $8.8 trillion, constituting 9% of the global GDP (Gallup,2023).

Shin and Konrad (2017) argue that business outcomes are closely tied to the performance of their workforce. Work performance represents the overall value that a company expects from the work carried out by an employee within a specified timeframe (Motowildo & Kell, 2012), the contribution to achieving the company´s objectives (Islam & Rasad,2006).

Actual research provides empirical insights into the value of employee’s work and their performance by assessing and measuring their actions, behavior and outcomes of the processes in which they engage (Viswesvaran & Ones, 2017). In addition, there is a focus on employee´s contribution to the achievement of organizational objectives (Al Hammadi & Hussain,2019), prompting researchers to explore and understand the factor that drive employee performance (Kundi et al., 2020).

Leadership stands out as a crucial factor in individual performance, as defined by Summerfield (2014), who characterizes it as the action undertaken by leaders to guide and inspire at all organizational levels.

In the realm of leadership, Neck, Manz, & Houghton (2019) empathize that traditional studies solely consider external influence leaders exert on their followers, neglecting the internal influence individuals wield on themselves through self-leadership. This concept implies that leaders must possess intrinsic motivation to carry their initiatives.

Houghton, Neck & Manz (2003, p.126) define self-leadership as a “process in which the individual influences oneself to achieve self-direction and self-motivation for performance. “This approach involves the use of specific behavioral and cognitive strategies to positively impact personal effectiveness (Neck & Houghton 2006)