Leadership and Decision-Making in Organizations - Coursework Example

Leadership and Decision Making In Organizations Table of Contents Introduction 3 Discussion 5 Negative Effects of Leadership on the Organisational Productions 5 Possible Negative Effects of Leadership on Employee Productions 7 Critical Evaluation 9 Relationship between Leadership and Production in Organisations 9 Implications of Stress Generated By Leadership and Authority on the Work Environment 12 12 Contribution of Leadership on Team Environment 13 Decision Sharing Between Manager and Employees 16 Conclusions and Recommendations 19 References 22 Introduction In the present, highly competitive business world, the needs for organisations to perform effectively and to take appropriate decisions have raised considerably as compared to the last few decades. It can also be stated that there lay certain imperative factors, which advocate for effectual leadership practices and adoption of suitable decisions as quite essential in this present day context. In this regard, these factors comprise increased level of globalisation, gaining momentum of internationalisation, prevalence of extreme business market competition and broader execution of pioneering technological advancements. Notably, prior to analyse the significance of leadership and decision-making in organisations, it is quite essential to acquire a brief understanding about these two decisive aspects. In general, leadership is regarded as a procedure through which an individual influences others to perform effective actions for the purpose of attaining desired operational or organisational objectives. Precisely, it can be affirmed that leadership enables individuals to attain a common objective. It is worth mentioning in this regard that leadership plays an indispensable role to enhance the performance of any specific business organisation by developing directions along with motivating and empowering the individuals towards the attainment of organisational success (Mumford, 2009). In this regard, certain valuable leadership qualities can be observed such as reliability, positivity, pro-activeness, enhanced intellectual ability and problem-solving skills to be among the essential leadership qualities. Furthermore, the other leadership qualities include having the potential to foster people in order to fulfil targets with honesty, acting in a transparent manner and possessing skilfulness, particularly in executing planning functions (Leatherman, 2008). Conceptually, these mentioned qualities strongly affirm that leadership often contributes in managing organisations in an effective manner, mitigating any possible threat, risk or vulnerability to the organisations’ sustainability. In this regard, leadership supports in managing organisations, facilitating effective communication amid every organisational member, fostering teamwork, exploiting the accessible resources effectively and most vitally making crucial decisions (Clegg & et. al., 2011; Grey, 2012). On the other hand, decision-making is often viewed as a cognitive procedure, which may result in selecting relevant course of actions amid numerous available options or alternative scenarios. Decision making is often viewed as one of the imperative responsibilities for leaders towards the accomplishment of organisational goals and objectives. Correspondingly, making effective decisions by a leader ultimately impose extensive impacts upon developing the overall performances and managing various crucial aspects of an organisation. The significance of decision-making is usually attributed to the fact that the decisions are generally made by the leaders in an organisation, demonstrating the values of the people associated within it, either directly or indirectly, which results in improving the overall performances of the organisation (Johnson, 2010). Correspondingly, this paper intends to discuss about the negative effects of leadership, particularly on employee and organisational productions. Moreover, a critical evaluation regarding the interrelation between leadership and production in organisations along with the implications of stress generated by leadership and authority on the work environment, would also be conducted in the following discussion. Various aspects, such as the contribution of leadership to team environment and decision sharing between managers and employees will also be prudently analysed in this paper. Discussion Negative Effects of Leadership on the Organisational Productions After acquiring a brief idea about the perception of leadership and its significance in the present day context, it can be apparently observed that certain major aspects of leadership impose both positive and negative impacts upon the organisational productions. In the similar context, one of the important aspects of leadership, i.e. overriding the new ideas by making top-down decisions, may have negative effects on the organisational production functions. Illustratively, the new idea of an organisation, towards implementing innovative technological advancements and developing its production process, may not prove to be effective due to its adherence to the existing or old technological procedures. This particular top-down decision concerning the execution of old technologies followed by an organisational leader may further impose unfavourable impacts upon the organisational productions to a considerable extent (Slideshare Inc., 2013). Moreover, according to the work experience, the dominating nature of the manager might restrict the employees to work effectively, hampering the overall performance of the organisation consequently. The other decisive facet of leadership, i.e. loss of ownership, can also dramatically affect the organisational productions in an unfavourable manner. In the modern day context, the organisations indulged in developing production functions or procedures are often faced with various problems due to various factors, which mostly include intense business market competition, volatile economic conditions, gaining momentum of internationalisation along with globalisation and most vitally, inevitably augmenting material and energy costs. These organisations often feel that enhancing the production functions and procedures has become an indispensable part for them, not only for acquiring profitability, but also for sustaining the business in the post modern, highly competitive scenario. It can be affirmed in this regard that two leadership components, quality or productivity enhancement and cost reduction, have become the prominent drivers of accomplishing superior competitive position for the modern business organisations engaged in improving its production operations. Thus, loss of ownership in the form of effective leadership practices concerning the above discussed important facets might affect the organisational productions by a greater extent (Cognizant, 2011). More specifically, the other forms of the leadership practice concerning the formation of an ineffective communication amid the organisational members may also unfavourably affect the organisational productions. In this regard, the aforesaid aspect might contribute in affecting the organisational productions through lessening the innovation skills of the employees, diminishing the efficiency of the work flow associated with production functions and decreasing employees’ morale in the long-run. In today’s era of globalisation and technology advancements, it is relatively important for the organisations to maintain an effective communication with the organisational members for the purpose of accomplishing certain significant benefits. These benefits might entail raising the operational performance of the personnel and enhancing the production operations, both in terms of quality and quantity. In order to determine the unfavourable impacts imposed by the formation of an ineffective communication during the organisational productions, certain major causes of poor workplace communication can be apparently observed. These causes include setting of unclear objectives, failure to manage cultural diversities, revealing poor leadership practices and various other issues associated with employees’ development (Sutton, 2010). Thus, the aforementioned leadership practices such as lack of ownership, formation of ineffective communication and overriding the new ideas by making top-down decisions, tends to extensively affect the organisational production functions. Possible Negative Effects of Leadership on Employee Productions Apart from imposing considerable impacts upon organisational productions, it can also be observed that there exist certain possible negative effects of leadership on employee productions as well. In this regard, it can be affirmed that employee production capabilities are related with the performance of the employees, which certainly assists the organisations to accomplish their predetermined business motives more aptly. Correspondingly, it can be affirmed that leadership not only effects employee productions, but also imposes unfavourable impacts upon employees’ performance. One of the major adverse effects of leadership on employee productions can be apparently observed as decreased staff morale. The ineffective practice of leadership performed by a business leader of an organisation is likely to pose considerable impacts upon the overall performance of the employees in terms of lessening their productivity along with diminishing their morale to a substantial extent. In this regard, making inappropriate decisions can be duly considered as one of the ineffective leadership practices. It can be affirmed in this regard that the consequences of the negative effects of leadership cost immensely towards employees’ production, which may further result in hindering the organisation’s competencies to attain their respective business targets (The Training Source, 2008). While analysing the probable negative effects of leadership on employees’ production, an instance from my work experience can be taken into concern for better comprehension. In my work experience, I was able to observe that the personality disorder traits possessed by the managers and their incapability of making effective decisions, tend to have severe negative effects on employee production, as it tends to discourage the personnel to work effectively for the betterment of the organisation. As a result, employees may dismay contributing with their wholesome effort towards the accomplishment of the common organisational goals. In this regard, it is quite evident that better organisational performance relies upon the behavioural attitudes of the employees. In relation to this particular aspect, ineffective leadership skills, such as restriction of employees’ from participating in decision-making procedure might impose unfavourable impacts, especially upon employee productions at large. It is strongly believed that leadership skills retained by the business leaders of an organisation tend to change the behavioural attitudes of the personnel, which further raises the likelihood of imposing unfavourable impacts on employee productions (Corporate Executive Board, 2002). It is worth mentioning in this regard that the business leaders, who usually become much obsessed or desperately dominant towards the attainment of set business targets, often neglect various significant aspects related with the development of employees’ performances within an organisation. In this context, aspects such as designing effectual training programs for the personnel, providing attractive compensations, benefits and reward systems along with encouraging them to participate in the decision-making procedure among others are more often neglected by leaders during the course of accomplishing the organisational objectives. Thus, it can be stated that the negligence of the aforesaid crucial aspects by organisational leaders, eventually imposes negative impacts upon employee productions resulting in underperformance of employees against their capability. Based on the above discussion, dominating leadership often adversely influences the productivity and correspondingly, the overall performance of the employees due to excessive work pressure, increased level of conflicts amid the employees and the leader and diminished satisfaction level of the personnel responsible for executing the organisational operations effectively. It is thus recommendable that business organisations should avoid members with dominant leadership traits in higher positions of organisational leadership, as the leaders with dominant characteristics may dramatically influence the employees’ ability to perform their tasks efficiently. As a result, employees’ productivity may witness a dramatic fall (Elenkov, 2002). Critical Evaluation Relationship between Leadership and Production in Organisations The analysis of relationship between leadership and production in organisations revealed that every business organisation in the current, highly dynamic business environment realizes the need for a particular system, which comprises interacting structures along with elements for the purpose of attaining desired business targets. It is worth mentioning that if an organisation requires effective employees for improved productivity, the employees would also seek practical and knowledge based leadership skills in order to incorporate the production standards for ensuring improved productivity. Thus, the organisations are required to perform both practical and authentic leadership practices not only for incorporating the production factors, but also for inspiring the employees towards the attainment of organisational targets. From this analysis, it can be affirmed that there exist direct interrelation between leadership and production in organisations (KolapoSakiru & et. al., 2013). It is strongly believed that certain critical factors, such as gaining momentum of globalisation, increased level of internationalisation, prevalence of extreme business market competition and execution of broader innovative technological advancements, have altogether imposed extensive impacts upon the production functions of an organisation. In this regard, the key mission of the organisations can be apparently observed as enhancing their respective production procedures through the gradual development of various types of organisational leadership aspects. These aspects include modernisation of the existing technologies involved in the production process, strengthening the decision-making procedure and most importantly, utilising the available resources effectively and in the most efficient manner (KolapoSakiru & et. al., 2013). More specifically, the team production approach can be taken into concern for analysing the interrelation that exists between leadership and production in organisations. Correspondingly, this particular approach focuses upon the aspect that the business leaders attached with any organisation represents those stakeholders who add greater value to the customers, bear greater responsibilities to mitigate any issue and possess appropriate strategic information for enhancing the production process of the organisation. It can further be affirmed in this regard that this particular aspect contributes towards enhancing the production functions or the operations of the organisation by encouraging the stakeholders to invest substantially in adopting and implementing pioneering technological advancements in their production process. Apart from taking into concern the team production approach, certain specific leadership facets of a business leader can aid in analysing the interrelation between leadership and production in organisations. In this context, the leadership features may include conducting regular meetings with the employees regarding the subject matter of developing production functions or operations, building effective communication with every organisational member associated with the production procedure and making effective decisions among others (Gabrielsson & et. al., 2007; Givens, 2008; Lipshitz & Mann, 2005). However, it is arguable that the above discussed leadership practices determine the existence of greater interrelation between leadership and production in organisations. The argument has been made on the basis that there are certain other imperative factors or effective leadership practices, which depict the prevalence of broader affiliation between leadership and production in organisations. In this regard, one of the leadership practices of designing a constructive team, based production culture, portrays the existence of broader relationship between leadership and production in organisations. This can be justified with reference to the fact that the formation along with the development of a constructive team based production culture certainly strengthens the responsibilities as well as the contributions of every member concerning the development of production procedure. In addition, the construction of this culture also tends to enhance the ability of the business leaders of any organisation to adopt effective strategies for the purpose of developing the production process. Thus, it can be argued that the design, along with the application of a constructive team based production culture generally supports the effectiveness of the business leaders in advancing the production process of their respective organisations, revealing greater interrelation between leadership and production in organisations. Correspondingly, it can be critically analysed that the decision-making aspect also identifies the prevalence of wider interrelation between leadership and production in organisations. In this regard, it has often been argued that the engagement of the business leaders in formulating and initiating effectual strategic decisions largely signifies shaping the content along with the context, rather than ratifying the monitoring of effective strategic decisions. This eventually facilitates the investors or the stakeholders to participate substantially on developing the production process, making the strategic decision-making procedure of the business leaders more effective and the established relationship between leadership and production in organisations more intact (Gabrielsson & et. al., 2007). Implications of Stress Generated By Leadership and Authority on the Work Environment The notion of ‘stress’ is fundamentally described as a kind of personal experience, which is mainly caused by increased demands or pressures on a particular individual and its impacts upon his/her capability to deal with that particular critical situations. It can be apparently observed that there exist numerous implications of stress generated by leadership and authority, especially on the work environment when conducting the current practices. Responsively, certain critical factors generally cause stress to the employees on the work environment. These factors can be identified as excessive workload, extended working hours, practice of bullying, racial harassment and prevalence of shift works among others. More specifically, the other implications of stress that are generated by leadership and authority on the work environment can be categorised as relationships, support, role, control, demands and change (Blaug & et. al., 2007; Buchanan & Huczynski, 2010). Taking example from my work experience, I was able to observe that the manager possessed a dominant nature even when dealing with small issues, which can be duly considered as one of the major implications of stress, generated by leadership and authority particularly on the work environment. The dominant nature of the manager might generate stress amid the staff members through amplification in managerial pressures along with demands and extended working hours among others. Relating to other work experiences, wherein the manager possesses personality disorder due to his/her inability to make effective decisions, such practices also generate stress on the work environment. The implications of stress that generated by this particular leadership practice or style can be apparently observed in the form of diminishing job control and inadequate job security among the staff members. It can thus be affirmed that the implications of stress generated by leadership and authority on the work environment generally persist, due to the reason for greater demands along with responsibilities linked with the leadership position, which the business leaders hold. As previously mentioned, the dominant nature of the manager in one particular organisation and the professional’s incapability in making effective decisions, might cause stress in the work environment. In this regard, it can be affirmed that the managers or the business leaders often dominate their subordinates due to stress witnessed from executing operations in a composite work setting that are mainly featured by various critical aspects. These critical aspects include rising costs, gaining momentum of internationalisation along with globalisation, speedy technological advancements and lessening valuable resources. The generation of stress by leadership and authority on the work environment impose unfavourable impacts upon the physical along with the psychological health and well-being of the individuals at large. Besides, physical and psychological effects, the individuals are also likely to experience with unhealthy coping habits due to increased level of stress that are often generated by leadership and authority on the work environment (Lovelace & et. al., 2007; Health Advocate Inc., n.d.). Contribution of Leadership on Team Environment In order to determine the contribution of leadership on team environment, it can be affirmed that effectual team performance generally derives from numerous fundamental facets. These facets include the integration of individual actions performed by the team members and performance of the teams in dynamic along with composite business environments. It has often been argued that leadership contributes on building effective team environment focusing upon advancing four particular aspects of team procedures including affective, cognitive, coordination and motivational. It is worth mentioning in this regard that the approach of functional leadership broadly contributes in building effectual team environment, generating a greater affiliation between a business leader and individual member of a team. The element of functional leadership is often described as a communal based problem-solving tool, wherein the leaders are held accountable for performing certain imperative actions. These actions comprise identifying any persistent problem, which hinders the successful attainment of organisational along with group goals, as well as facilitating innovation, planning apt solutions and executing the programmed strategies within the sphere of typically composite social domains (Zaccaro & et. al., 2001). It is worth mentioning that various leadership performance based functions have greater contribution on team environment. In this regard, the leadership performance based functions encompass information search as well as structuring, making use of valuable information in resolving problems and managing material and personnel resources. The function concerning information search along with structuring, enables the leaders to contribute towards team environment through performing various tasks such as searching, evaluating and most vitally, organising valuable information about team operations and objectives. The function, i.e. exploiting valuable information in problem solving, allows leaders to contribute on team environment through recognising the requirements of the individual team members and communicating information accordingly. It can be apparently observed that the function of managing personnel resources assists leaders in acquiring, allocating, inspiring, developing and supervising the personnel resources, which eventually contributes towards effective team building and cultivating effective working environment. Finally, the functions relating to the management of material resources often contribute towards team environment by obtaining, allocating, preserving, executing and most importantly, scrutinising material resources prudently. In the context of determining the contribution of leadership, especially on team environment, it can be stated that the above mentioned functions primarily focuses upon the recognition of the business leaders and solving the problems pertaining to team through generating appropriate solutions. In addition, the above listed functions contribute on team environment by facilitating the business leaders in attaining desired business targets, particularly in dynamic and composite work settings (Zaccaro & et. al., 2001). The contribution of leadership on team environment can also be determined in terms of satisfying the interpersonal needs of the team members. In this regard, the interpersonal needs of the team members can be observed as promoting sufficient team members’ motivation, developing a feeling of psychological safety and resolving the emotions along with the conflicts that often take place within the team members. It can be affirmed in this regard that the fulfilment of the interpersonal needs of the team members eventually influences the performance of the individual team member and develops a standard as well as highly committed team environment. Correspondingly, the leadership functions related with certain phases such as transition and action phase also determines the contribution of leadership, especially on the team environment. In this respect, the leadership functions associated with transition phase generally include clear statement of the overall team’s goals, mission along with performance standards, structuring effective responsibilities within individual team member and enabling more efficient feedback procedures within the team. These leadership functions linked with the transition phase eventually imposes considerable impacts upon team environment in terms of developing the future actions of the team members towards the accomplishment of organisational targets. On the other hand, the leadership functions related with the action phase can be observed as supervising the team along with performance setting, solving complexities or problems that the team often experiences while obtaining adequate resources for the team. Moreover, the other leadership functions associated with the action phase can be viewed as promoting the team towards performing various actions effectively, facilitating them to participate in decision-making procedure and developing a suitable working climate within the team wherein every team member is motivated to contribute their best towards the accomplishment of the organisational goals. It can thus be affirmed that these leadership functions related with the action phase contributes in building effectual team environment through finding out the better alternatives for attaining the predetermined business targets (Morgeson & et. al., 2010; Yun & et. al., 2007). In accordance with my work experience, I feel it is arguable that the dominant behaviour of the manager or the business leader and his/her incapability of making effective decisions within a team might impose unfavourable impacts upon the team environment. Decision Sharing Between Manager and Employees Before determining the significance of decision sharing between managers and employees and its implications constituting both positive and negative impacts upon organisational productions, it is indispensable to comprehend the notion of decision sharing. The perception of decision sharing is fundamentally regarded as a collective or a collaborative procedure, which enables the managers towards making effective decisions through better exploitation of available resources (Informed Medical Decisions Foundation, 2013; NICE, 2013). After acquiring a brief idea about the concept of decision sharing, it can be affirmed from that this particular aspect is more likely to impose positive impacts upon development of the production functions or operations of an organisation by a certain degree. The valuable facet of decision sharing between managers and employees can also be related with the conception of participative management. The perception of participative management represents a practice or a system of making effective decisions mutually towards the accomplishment of common organisational goals and objectives. It is worth mentioning in this regard that decision sharing between managers and employees promotes overall performance of the organisations, enhances the productivity of the employees and increases their motivation of employees. The prime concern of decision sharing between managers and employees can often be viewed as an effectual motivational tool owing to the reason that when the personnel participate in the decision-making procedure, they become highly motivated due to valuing and implementing their decisions by the management team of the organisations (Highhouse & et. al., 2013). The facet of decision sharing, especially between managers and employees, can assist organisations in the current highly competitive business environment to smoothly operate various functions without any disputes and conflicts. This can be owing to the reason that it enhances the quality along with the acceptance of effective decisions, strengthens workers’ self-esteem as well as motivation level, raises ownership sense and most significantly, develops interpersonal affiliations with the personnel in the organisation (Billikopf, 2006). Based upon the significance of sharing effective decisions between manager and employees, it can be stated that decision sharing can impose positive impacts particularly upon the development of organisational production related functions or operations. This can be justified with reference to the fact that improved decision making along with sharing can lead towards gaining momentum of production, fewer production interruptions, prevalence of lesser irregularities, generation of more effective as well as streamlined production based operations and diminished number of production related accidents. These prime facets of decision-making ultimately impose positive impact upon organisational productions at large (Kaarstad & Rindahl, 2012). Sharing of effective decisions between manager and employees can also effect positively on production of organisations through increasing productivity, enhancing morale of the team members engaged in the production procedure, making better exploitation of the accessible internal resources and fostering greater teamwork amid every individual team member or employee. Relating to the facet of increased level of productivity and enhancement in employees’ morale, the organisational productions can be developed through engaging the employees in decision-making procedure. It can be apparently observed that most of the business organisations in modern day context have a dissimilar division of power particularly between the manager or the management team and the employees (CIMA, 2006; Ryan & et. al., 2010). However, the active engagement of the personnel in the decision-making procedure might lessen the gap relating to division of power and form effective communication between management the employees. This, in turn, positively impacts the production of organisations. In relation to the factor essential for exploiting the available internal resources effectively, it can be affirmed that involving employees in decision-making procedure instead of outsourcing saves considerable time along with money resulting positively, with respect to the organisational productions. At the same time, greater participation of the team members or the employees in the decision-making procedure provides them with the prospect of delivering their valuable opinions and also paves a way to share valuable knowledge among others. Moreover, this significant concern also tends to enhance the interrelation between manager and employees, promoting a greater teamwork amid the personnel. This might result in positive implication upon the production of organisations in terms of raising its operational efficiency along with making the employees more liable towards the development of the production functions (CIMA, 2006; Ryan & et. al., 2010). Correspondingly, relating to my work experience, I feel that the dominant nature of the managers or the business leaders and their incapability towards making effective decisions might force unfavourable impacts upon the production of organisations in terms of diminished employees’ morale, lessened productivity and ineffective execution of available resources. Conclusions and Recommendations From the above analysis, it can be affirmed that both the aspects of leadership and decision-making play an imperative impact on organisation’s productions as well as on employees’ productions. Moreover, it can also be observed that there pertain certain negative effects of leadership on the aforementioned two aspects. In this respect, the dominant nature of the managers or the business leaders and their incapability towards making effective decisions often have the tendency to affect employee as well as organisation’s productions to a great extent. Moreover, certain other factors that include loss of ownership and formation of ineffective communication between the team members also negatively affect the operations of modern business organisations, i.e. employees and organisational productions. More specifically, employee productions can be related with the performance of the employees, which generally gets affected due to the factors like decreased staff morale, non-participation in decision-making procedure and eruption of conflicts between the management and the employees. It has been viewed that there exists a greater interrelation between leadership and production in organisations. This can be justified with reference to the fact that the business leaders in the modern organisation setting are required not only to perform diverse tasks not only for raising production standards, but also to encourage the employees towards attaining organisational objectives. Notably, there exist several implications of stress that can be generated because of ineffective leadership and authority on the work environment. Such implications can be associated with the relationships, support, demands, change and thought process of the business leaders belonging to organisation. It is strongly believed that leadership contributes on building effective team environment through making greater use of available information for problem solving and managing personnel as well as material resources among others. It can be stated contextually that the adverse effects of leadership particularly on employee along with organisational productions and increased level of stress that are generated by leaders and authority on the work environment, should be effectively addressed and mitigated for the purpose of assisting the organisations to sustain in this competitive landscape. In this similar context, prime focus ought to be laid upon making effective decisions, promoting employees’ morale involving them in decision-making procedure and most significantly forming an effective communication amid them. Moreover, the modern organisations would also emphasise on quality and productivity enhancement along with cost reduction with the intention of developing their respective organisational productions. In addition, the business organisations should follow the aspect of functional leadership in order to mitigate the unfavourable impacts that are often imposed by leaders on employee and organisational productions. In this regard, the functional leadership outlook would facilitate the organisations in terms of recognising any possible problem, hindering the organisational goals to be accomplished, planning appropriate solutions to mitigate the complexities and effectively exploiting the accessible resources among others. This particular approach is also expected to resolve the stress level, which is generated by leaders and authority on work environment. References Blaug, R. & et. al., 2007. Introduction. Stress at Work, pp. 4-89. Billikopf, G., 2006. Empowerment and Delegation. Labor. Buchanan, D. & Hucynski, A., 2010. Organizational Behavior. Pearson Education Ltd. CIMA, 2006. The Decision Making Process. Improving Decision Making In Organisations, pp. 1-55. Clegg, S. 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