The purpose of this paper is to investigate theories and performance requirements for achieving effective organizational leadership. Particularly, the paper examines such theories: leader-follower relations, path-goal, and motivation theories, the cognitive resource theory, social exchange theory and others…
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From this research it is clear that effective leaders support the optimal performance of a group of subordinates. They add great value to an organization. Highly effective executives who are also known as peak performers are noted to have productivity rates that are 25 to 50 percent higher than their average or poorly performing counterparts. Highly effective leadership is characterized by productivity, health, relational behaviour, or a combination of these factors, which result in performance at optimal level. The main goals of effective leadership are: facilitating organizational goal setting and helping to achieve them, promoting optimal levels of individual motivation, commitment and satisfaction, facilitating effective interactions among individuals within teams, helping employees to set high goals for themselves, and place the organization’s effectiveness above their own self-interests. The effective leader operates simultaneously on the performance as well as the people of the organization or unit. Performance includes the process of how things get done, the length of time taken, as well as the outcome of productivity and quality. The aim of performance is productivity, and the aim for people is health. The effective leader operates both requirements successfully, emphasizing both productivity and health. Productivity is the ratio of input to output; and increased productivity has beneficial outcomes such as higher profits and market share. On the other hand, people encompasses the skills, talents, competencies and needs of the employees, leaders and other stakeholders involved with a particular corporation or organization. Health is similar to productivity in being a measure of outcome, and is manifest in both the individual as well as the corporation. For individuals, health includes physical and psychological well-being, job satisfaction, and other factors (Sperry, 2003). Thus, the fundamental premise regarding effective leadership is that it is a function of both productivity and health, and they are inter-connected. By realizing the importance of the people dimension, the effective leader ensures that employees’ levels of commitment and morale remain high, burnout does not occur, and
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