Effect of Leadership on Organisational Effectiveness - Coursework Example

Running Head: leadership and Effectivness Effect of Leadership on Organisational Effectiveness Name Course Tutor Date Introduction Different people in different fields define leadership differently. The leadership debate has elicited mixed debates and opinions regarding the topic and its effects on organizations. Whatever the arena that the leadership discussion is being held, a leader will always have an impact on how effective the organisation they run is. The effectiveness of any organisation reflects directly on the abilities of leaders to efficiently strategise and ensure proper implementation (Gosling, Sutherland, & Jones, 2012). The collective effectiveness of organizations in different industries in a country directly affects the economy of that country. It is, therefore, eminent that leadership plays a crucial role in determining effectiveness of organizations and the general status of economies in countries. Effectiveness in organisations entail combination of resources in a manner that yield optimum results given the dynamics of operation and the organisational culture which is safeguarded and outlined by leadership (Palmisano, 2008). Effectiveness in an organisation is all about aligning company resources in terms of personnel, management systems, capabilities and cultures in an engagement atmosphere to achieve set objectives. This essay will discuss the extent to which leaders influence the level of effectiveness in organisations (Joyner, 1990). Leadership theories that affect the effectiveness of organisation will also be discussed in this essay. This essay will also determine the extent of correctness of the statement that organisational effectiveness is highly dependent on leadership schemes and strategies. Leadership and effectiveness in organisations Leadership entails the ability to affect people positively towards achieving organisational goals. There are many definitions of leadership but majority of them revolve around influencing and inspiring people to act accordingly and unleash potential necessary for achieving set goals. A leader poses attributes that are crucial in affecting the behaviour of people in an organisation. Effective leaders have charisma and authoritative assertiveness which members of the organisation look up to in cases of crises in the organisation (Hannah, Avolio, & Luthans, 2008). An effective leader receives willing support from followers. Both leaders and followers have the intention of making real positive change given shared common objectives. Leadership has many definitions, but they all assert the role of a leader in affecting and influencing others towards a common course or purpose An effective leader has qualities of vision, wisdom, responsibility and diligence. These qualities facilitate in decision making, mentorship and communication within and without the organisations. The leadership role also ensures that issues of the ethical standards and codes of conduct are maintained and followed according to set principles (Starratt, Langlois, & Duignan, 2010). Given the crucial essence of leadership in organisations, leadership behaviour plays a crucial role in organisations. Leadership, unlike management is not easily replaceable or substitutable. This means that it can only be acquired over a long period of time through keen observation training and taking participatory approaches towards it. Though it is widely agreed that leadership has an effect on organisational performance, it is difficult to determine the exact extent to which the effect is achieved (Dickson, Castañ, & Magoma, 2012). The success of a leader translates to the performance and success of an organisation well. The measurement of success and performance is viewed in profitability, market share, share prices, growth rate, and other specific goals related to that organisation. Since the leadership portfolio is responsible for all happenings in the organisation, the methods and paradigms they apply are directly tied to these measurements of success. Different scholars have come up with different research methods to associate the markers of success to leadership. For instance, the market price of an organisation has been directly linked to the leadership style and effectiveness. Extensive studies within several corporations and organisation have proven that the profitability and prices of stock and shares appreciate if leadership is oriented to improve these factors (Nelsey & Brownie, 2012). Though the political, economic and operational dynamics contribute to the performance of an organisation, it is up to the leadership to contemplate market conditions and make crucial decisions that will take advantage of existing opportunities to gain a competitive advantage over rivals and aspiring entrant (Cavazotte, Moreno, & Hickmann, 2012). This is why some organisations will continue making profits even when the economic conditions are not favourable and others will fail. A recent study conducted over 10 years in major corporations showed that companies that were regarded to have effective leadership portfolios had recorded growth rates of up to 900% compared to others that did not have similar portfolios. It is worth nothing that, in addition to the personality of leaders in organisations, there are some support factors that determine the success of leaders (Purvanova & Bono, 2009). These factors include resource endowment and the kind of support staff that leadership engages in the organisation. The resume of each and every individual in the organisation plays a crucial role in ensuring that the efforts of the leadership team are met accordingly in alignment with set expectations (Andersen, 2006). Leadership is all about effective strategies that yield results. In this view, application of strategic leadership is one of the biggest markers of success. Application of defined strategies is what will determine and separate successful leaders from unsuccessful one. Strategic leadership has been defined as the process by which leaders provide specific directions and guidelines towards creating a sustainable and growing organisation in regard to implementation of growth opportunities. The business environment around organisations is rapidly changing in the contemporary world of globalisation. This has called for leaders to integrate new ways into their strategic plans. The strategies can either be long term medium term r short term. The long term strategies revolve around the organisation itself and its general blueprint in conducting activities. Medium term strategies depend on leverage that organisations have over their rivals tat enable them to penetrate new markets and introduce new products using this advantage (Crossan, Vera, & Nanjad, 2008). Short term strategies are highly dependent on the ability of leaders to make quick and informed decisions given restrictive time frames and constraints. The short term strategies, a times alls for leaders negating their normal ways and taking advantage of opportunities before competitors can get wind of the potentiality in such strategies. Leaders are risk takers. Successful ones understand that taking risks is inevitable and necessary to achieve success. Using past experiences, leaders device ways of assessing problems, defining objectives and developing plans of action that will enable achievement of goals. Research has shown that risk taking strategic leadership is responsible for over 40% in profitability and financial performance in major corporations and companies. There is no better measure of effectiveness in leadership than the profitability margins (Zarrabi & Vahedi, 2012). As mentioned earlier, organisations in the modern world are dealing with volatile and dynamic environments of operation. Therefore, leadership has to keep up with the changing dynamics to ensure consumer satisfaction and sustainability, furthermore, interest groups and stakeholders are becoming more and more demanding as financial constraints and demands continue to affect them. Organisations are guided by culture and values that have enabled them to survive for their entire life; however, it reaches a time when the environment warrants change (Guestr, Hersey, & Blancha, 2006). For instance, the BMW automotive makers had for a long time relied on their traditional strategies and at the same time maintained profitability. It reached a time, however that their profitability started shrinking and they had to redefine some of their strategic plans as they were losing market share to competition (Prosser, 2010). The manner in which leaders respond to changes will affect their competitiveness and performance. Leaders should integrate modernity into their strategies to reduce costs and ensure efficiency (Iqbal, 2011). The dynamic environment also offers a great avenue for opportunity strategies that could help increase leadership effectiveness in a volatile environment (Arvonen & Pettersson, 2002). A good example of quality leadership with positive effects on an organisation is the Apple Corporation under the leadership of Steve Jobs. The Apple CEO was able to build an empire in a brutally competitive market citing corporations such as Microsoft, HP, Intel, and Dell. Apple is widely recognised and accepted brand in the world attributable to the effective leadership of Steve Jobs (Lazonick, Mazzucato, & Tulum, 2010) Effective leadership in an organisation can also be measured through how efficient communication is carried out. The communication flow chain from top leadership to junior staff should be effective and able to deliver desired results. Leadership communicates strategies to management who are charged with supervision of implementation. Miscommunication or lack of it within an organisation could make the difference between a successful and an unsuccessful strategy (Zaccaro & Horn, 2003). Further, it should be so efficient that bureaucratic loopholes and should not be there. The leadership will be held responsible by shareholders and government institutions for the failure of a company. Leaders should have abilities to show emotional intelligence and relationship building with management and other staff in the company. This eliminates fear and makes communication much easier (Purvanova & Bono, 2008). The leadership figure should not intimidate their juniors in terms of stature and achievements. Instead, they should stand as role models who are approachable when a problem arises in the work place. The FedEx coronation describes communication as central to success of a business. It defines the relationship between a leader and their followers. The bottom line is that no strategy can be successfully implemented if is not communicated efficiently (Çetin, Karabay, & Nac, 2012). Conclusion It is evident that leadership pays a crucial role in determining organisational success. They are solely responsible for strategising and ensuring that such strategies are well implemented. In doing this, they have to affect positively on the team that is tasked with the implementation. The relationship between the two should be an open one where views, diversities, personalities and abilities are respected and put into use to the advantage of the organisation in general. The leadership owes the success of the organisation to stakeholders and the organisation itself. Leadership strategies and styles will always affect effectiveness of an organisation given the several indicators References Andersen, J. A. (2006). Leadership, personality and effectiveness. The Journal of Socio-Economics , 35 (6), 1078-1091. Arvonen, J., & Pettersson, P. (2002). Leadership behaviours as predictors of cost and change effectiveness. Scandinavian Journal of Management , 8 (1), 101-112. Cavazotte, F., Moreno, V., & Hickmann, M. (2012). Effects of leader intelligence, personality and emotional intelligence on transformational leadership and managerial performance. The Leadership Quarterly, , 23 (3), 443-455. Çetin, M., Karabay, M. E., & Nac, M. (2012). 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