Leadership and Organisational Effectiveness - Coursework Example

Leadership and Organisational Effectiveness Introduction Organisational effectiveness is a multidimensional and vague concept that lacks a standard definition. Nonetheless, it is commonly described as the ability of an organisation to achieve the goals that it has set out (Dressler, 2004). According to Moore (2007), organisational effectiveness can be described as the measure of how an organisation can efficiently use its limited resources to convert input into output. Similarly, Richard, Devinney, Yip & Johnson (2009) observes that, organisational effectiveness relates to organisational performance and efficient organisational operations. Over time, a considerable number of studies have been conducted in an attempt to examine what factors contribute to organisational effectiveness. Some studies suggest that organisational effectiveness can be linked to human resource management strategies (Sims, 2002; Burke & Cooper, 2008), other studies suggest that organisational culture contributes to organisational effectiveness (Chan, Shaffer & Snape, 2004; Hartnell, Ou & Kinicki, 2011; Denison, Haaland, & Goelzer, 2004). However, a significant number of studies suggest that leadership is one of the overriding factors that contribute to organisational effectiveness (Chi, Lan & DorjGotov, 2012; Igbal, 2011; Joyce 2009; Robinson, Lloyd & Rowe, 2008; Yukl, 2008). In addition to this, a number of leadership theories or models have been developed in order to illustrate how different leadership approaches/styles impact on organisational effectiveness (Clawson, 2011; Robinson, Lloyd & Rowe, 2008). This paper seeks to critically examine to what extent leaders influence organisational effectiveness. Firstly, it will define who is a leader and what leadership entails. Subsequently, in reference to relevant leadership theories and concepts, this paper will explore the extent to which leaders influence organisational effectiveness. Who is a leader? What is leadership? A critical look at relevant literature on leadership, it is evident that there are different definitions, views and perspectives on who a leader is and what leadership entails. For instance, O’Neil (2011) observes that a leader is someone who guides, commands or exercises power over others in order to achieve certain goals. Conversely, Ciulla (2004) notes that, a leader is someone who influences other people towards a common purpose or direction. In order for a leader to influence other people towards the achievement of certain goals, Wart (2005) argues that leaders must possess certain distinctive traits such as confidence, charisma, emotional maturity, integrity, effective communication skills and flexibility. On the other hand, leadership has been defined as an influence relationship that exists between leaders and their followers for the purpose of realising common goals (Ciulla, 2004). Similarly, Northouse (2007) observes that, leadership is a continuous process that involves an individual influencing a group of people in order to realise mutual objectives and goals. Based on these definitions, it is plausible to conclude that a leader is someone with certain distinctive trait which enables him or her to exert influence on other people in order to achieve mutual objectives and goals. Leaders and organisational effectiveness Bass & Avolio (1993) suggest that the leadership style that a leader employs plays a significant role in influencing organisational culture and its overall effectiveness. Basically, there are different types of leadership styles, they include laissez-faire, authoritarian, democratic, transformational and transactional leadership styles. These leadership styles have a direct impact on the culture of an organisation. For examples, organizations which have leaders who use an authoritarian or autocratic leadership approach are in most cases characterised by direct supervision, little consultation, strict regulations and adherence to schedules and hierarchical power relationships (Martindale, 2011). Although in such an organisation employees may feel that they do not have freedom or flexibility to do as they please, such a work environment can be productive. This approach to leadership often eliminates employee’s tendency to “slack off”. It can promote effectiveness and increased speed when it comes to task performance since corrective measures are taken against employees who fall behind. Furthermore, since employees are monitored closely, work quality may improve, time wasting is avoided and resources are efficiently utilised. This type of organisational climate may in turn enhance employee performance and promote organisational effectiveness(Murugan, 2007). Conversely, in an organisation where a leader uses a laissez-faire approach, the organisational culture is bound to be characterised by flexibility, innovativeness and autonomy (Johnson& Hackman, 2003). Laissez-faire leaders tend to have a “hands-off” or delegative approach towards leading people. As a result this type of leadership instills a high sense of commitment responsibility on employees and encourages innovation and creativity. Thus promoting organisational effectiveness (Murugan, 2007). As observed earlier in this paper, a number of leadership theories or models have been developed in order to illustrate how leaders or different leadership approaches/styles impact on employee performance and overall organisational effectiveness. The Trait model is a good example of a leadership theory. Clawson (2011) observes that the Trait model accentuate on the personal characteristics of leaders. The basic premise of this model is certain individuals posses innate characteristics that make them influential leaders. The “great man” theory of leadership, a subsidiary of the trait model, identifies these characteristics or traits as; self-confidence, decisiveness, persistence, assertiveness, ambitiousness, adaptability, stress tolerance and dependability among many other qualities (Clawson, 2011). These traits add value to an organisation. In reference to the trait model some studies have established that the personal characteristics of a leader play a significant role in influencing the performance of employees and the overall effectiveness of an organisation (Walumbwa et al 2011; Babcock-Roberson & Strickland, 2010). For example, dependability contributes to increased cooperation and effective teamwork eventually resulting to improved organisational performance (Jones & George, 1998). Bandura’s social learning theory supports this notion. According to the social learning theory people learn best through observation, direct modeling and verbal persuasion (Bandura, 1977).When an organisation has leaders who have traits or characteristics such as those envisioned in the “great man” theory of leadership, employees are bound to observe and model these behaviours. For instance, when a leader is decisive , passionate, ambitious, stress tolerant or self-confidence, after a certain period of time employees tend to ape or model such traits. Leaders also help to set standards of behavior with the organisation through verbal persuasion. For instance, hardworking leaders influence employees to work hard and self-confident leaders can help employees become confident in their abilities or skills. De Hoogh & Den Hartog (2008) note that, leaders not only reinforce values in their decision making but they also clarify to employees how their efforts and skills will contribute to the attainment of important organisational goals. Consequently, employees learn to think and work strategically hence promoting organisational effectiveness (Walumbwa et al, 2011). The Attribution Theory of Charisma also identifies some leadership traits that play a significant role in influencing employee behavior, performance and the overall effectiveness of the organisation. According to this theory, there are five key leadership characteristics that show that leaders are charismatic. These traits include; challenging status quo, use of unconventional strategies, sacrificing and risk taking, self-confidence and persuasiveness. Wart (2005) notes that charisma is one of the distinctive aspects of a leader that make it possible for one to influence the behavior or performance of others in order to achieve a common goal. People are more inclined to listen or follow a leader with charisma. Charismatic leaders tend to inspire, motivate and intellectually stimulate their followers towards action. This may eventually result to improved organisational performance. For instance, Martin Luther King Junior, an African American Civil Rights movement is a good example of a charismatic leader. Through his charismatic approach to leadership he was able to influence the values and practices of civil rights movements in America. For example, he influenced the use of civil disobedience in the fight for equal rights in America (McGuire & Hutchings, 2007). In addition to this, a considerable number of empirical studies have provided compelling evidence that leadership can influence employee performance and the overall effectiveness of an organisation. Wang, Tsui & Xin (2011) established a positive correlation between CEO behavior and organisational performance. Chi et al (2012) found that, transformational leadership contributed to innovation, employee satisfaction, productivity and quality. Moreover, Simosi, & Xenikou (2010) established that leadership has a direct impact on employee commitment to their work roles and the organisation. Employee commitment plays a significant role in promoting organisational effectiveness thus leaders can significantly influence organisational effectiveness (Simosi & Xenikou 2010). Conclusion This paper has examined the extent to which leaders influence organisational effectiveness. The findings of this paper show that, the leadership style that a leader employs plays a significant role in influencing organisational culture and its overall effectiveness. Secondly, based on the Trait model of leadership, this paper has established that the personal characteristics of a leader play a significant role in influencing the performance of employees and the overall effectiveness of an organisation. Furthermore, it has been established that charisma as a leadership trait, tends to inspire, motivate and intellectually stimulate their followers towards action. This may eventually result to improved organisational performance. Moreover, by exploring various empirical studies, this paper has established that there exists compelling evidence that there is a positive correlation between leadership innovation, employee satisfaction, commitment, productivity and quality. Hence, leaders can significantly influence organisational effectiveness (Simosi & Xenikou 2010). 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