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Impact of decision-making in organizational performance - Article Example

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This essay explores the importance for any organization to develop its own decision making process, with clearly defined leaders who take responsibility for this key function. Without good leadership, businesses become chaotic, and much time is wasted pursuing conflicting agendas. …
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Impact of decision-making in organizational performance
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Impact of decision-making in organizational performance

Download file to see previous pages... From the research it can be comprehended that organizations in the modern world are complex, and many theories have been developed to explain what makes them work, and how to make them work even more effectively. A key element of organizational performance is the way that leaders make decisions, and then persuade all members of the organization to carry out these decisions in the way that is intended. The personal qualities, skills and style of a leader are all factors which can affect the way that an organization behaves. Leaders have an important role to play in any organization and they can influence the organizational performance because everyone in the organization is expected to follow the leader. Leaders should make sure that the subordinates do not only follow them but take inspiration from them. In this way there are high possibilities that employees of the organization will give maximum output and overall performance of the organization will be enhanced. Owing to the perceived importance of the impact of leadership on performance of the organization, several research studies have been conducted in order to analyze what kinds of leadership exist, and whether there is a relationship between leadership and the organizational performance. This paper presents a critique of several recent articles on the relationship between leadership and organizational performance. ...
arajan, Sonnenfeld and Srinivasan, 2006) analyzes organizational performance and identifies its relationship with the charismatic style of leaders, as well as environmental uncertainty. In addition to this, the research also identifies the perceptions of top team management about the charisma of a CEO. The authors emphasize the fact that leadership style and its impact on organizational performance has been one of the most important topics of today’s world as leaders have a key role to play in motivating everyone in the organization and ensuring that the organization performs at its optimum level. In this research article, information has been collected using both primary and secondary research methods in order to perform the analysis. In the primary research part of the article, questionnaires were filled by people in the top management as well as CEOs of different organizations to analyze the relationship between the variables discussed above. Because the article had a large sample size, 770 questionnaires were filled and returned and this means that the results shown by this research are likely to have high validity. There was a sample size of 128 CEOs from different companies and this breadth in the location of the participants is a strength of the study. Another major strength of this article is that the study analyzed organizational performance using different criteria like the return on assets, return on equity, sales growth, return on sales and stock return. These measures provide good empirical evidence on which to judge organizational performance whereas other studies previously conducted have not considered these criteria of measuring organizational performance. One of the major weaknesses of this research study is that it included only firms operating in ...Download file to see next pagesRead More
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