Organizational Success and Effective Leadership - Coursework Example

Name: Tutor: Title: Organizational Success and Effective Leadership Course: Date: Table of Contents Title: Organizational Success and Effective Leadership 1 Table of Contents 2 Introduction 3 Leadership and organizational innovation 3 Leadership and organizational culture 5 Role of leadership in strategy implementation 6 Effective leadership and organizational change 8 Conclusion 10 Bibliography 11 Introduction Successful firms are the result of efficient and well-organized leadership. Leadership is concerned with influencing individuals and leaders are futurist thinkers who motivate, inspire and act as role models to attain the goals of an organization. Leaders steer firms toward turning their vision into a reality. Leadership implies creativity, intellectual drive and knowledge, ethics, self confidence, charisma and courage. Basically, an effective leader has skills, balanced personality and a purpose. The leader has integrity, dedication, vision and is open and creative towards people and new approaches, and makes sure that credit for effectiveness is offered to every employee and is also responsible for failure. The modern day globalised and volatile business environment needs a flexible leader who should function as a change agent and a person who can enhance organization and people to adjust and be successful whilst taking customer satisfaction into action. Effective leadership lead to organizational success to effective change management, strategy implementation and promotion of organizational creativity and innovation. Leadership and organizational innovation Effective leadership plays a key role in the process of innovation in an organization. The models several firms have utilized in the past are no longer sufficient for success and effectiveness in the twenty first business environment. In several sectors nowadays, work processes are shifting at a faster rate as companies are faced with the challenges of swiftly changing technology, unpredictability, turbulence, uncertainty and globalization. In the ancient times, as a result of monopoly to market, brand or technology, organizations could anticipate to be successful and effective for long durations in spite of their refusal or incapability to innovate. Nevertheless, as a result of volatile business environment, several firms are failing and thus are required to be consistently creative and innovative in order to stay successful and competitive. This strategy assists organizations in establishing conducive environments to renewal, develop organizational culture that promotes innovations and create organizational diversity that consequently assists firms to be successful and competitive (DuPont, 2002). According to Schein (2005), whilst strategy, culture and technology are vital in creating organizational effectiveness and success in the twenty first century, innovation and creativity are key drivers of organizational success in several sectors. Nevertheless, for creativity to occur, leaders should efficiently implement strategies that will encourage this creativity. Thus, effective leadership acts as a catalyst as well as source of innovation and creativity in an organization. In the real sense , for companies to be capable of achieving consistent innovations, their leaders must create an environment that is favorable to renewal and establish organizational culture that promotes innovation and creativity. Organizational creativity is also dependent on the way leasers manage and encourage diversity in their companies and also develop an efficient leadership structure that promotes the process of innovation. Effective, creative and successful organizations don’t come into view by accident and they needs leaders to control and drive deliberate transformations in culture, process and structure so as to change them into effective, productive and creative organizations (Askenas et al, 2006). Although several firms search for their competitive advantage within their strategy, structure, culture and technology, effective leadership is viewed as the most vital source of this competitive advantage. Leaders in an organization normally makes decisions on what happens in organizations and offer vision, momentum, and direction that lead to success. Thus, effective leaders are catalysts and manage and create organizational culture, strategies and environment that promote and maintain effectiveness, success and innovation in the company. When a firm develops its work processes along with strategy, leaders direct implementation that leads to its achievement. Appropriate organizational culture, strategy and technology are essential and lead to organizational success. Nevertheless, leadership should sustain support, inspire and encourage, inspire the followers to achieve it. Thus, for innovation process to start in any company, that company should first have the appropriate leadership structure and effective and right leaders. In addition, leaders should themselves have interest in innovation to avoid the suppression of innovation and creativity in the firm (Bohn, 2002). Leadership and organizational culture Top leaders within the firm usually possess the authority and power to come up with strategies that result to innovation, implying that if they are not able to recognize chance for renewal, don’t aspire to exploit the opportunity or are not able to effectively react to them, the leaders are capable of impeding innovation. On the other hand, if the objective of leaders are innovative, ambitious and dynamic, and if they display proactive attitudes along with the ability to make effective responses to change, this helps in bringing innovation , success and renewal to an organization. According to Schein, (2004) several management theorists claim that effective culture, strategy and work processes, and not leadership are the key determinants of a firm’s success. For instance, they point to technology and Japanese auto industry to demonstrate how their efficient corporate culture assisted in their organizational success. In addition, empirical research shows the significance of culture in the success and performance of an organization. Schein (2004) notes that leaders are responsible for the development of organizational culture. For instance, when IBM needed to transform its culture so as to renew the firm, it used a novel chief executive officer, Lou Gerstner. Likewise, it took Welch Jack, a novel chief executive officer to transform General Electric’s culture to assist it to become greatly successful and innovative. Therefore, change of culture can’t happen without the involvement, active support and commitment of leaders who constantly work to talk into organization employees of gains and need for a culture change in the organization. According to Schein, (2004), organizational success depends on effective leadership and also on organizational culture. These aspects are interrelated and a firm along with its leadership model reflects the beliefs and values of its founder. Good and effective leaders manipulates a firm culture to their benefit and tranform it to match their vision. Leadership and culture are greatly interwoven because leaders develop instruments and context for organizational and cultural development, for reinforcing the values and norms expresses in the culture. Role of leadership in strategy implementation Leadership plays a vital role strategy implementation and the subsequent organizational success. Organizational effectiveness and success is vital to success in the economy. So as to attain sustainable and increased business results, firms are required to implement strategy and involve employees. According to Freedman and Tregoe (2003), in order to develop organizational effectiveness, organizational leaders require to focus upon engaging and aligning their employee, employee management schemes, capabilities and structures to the strategy. Effective leaders engage employees, a move that leads to increased financial performance, increased consumer satisfaction and increased employee retention. A firm that is able to maintain such alignment is able to achieve increased business results. Drucker (2004) notes that strategic management is seen as a set of actions as actions that lead to the formulation, control and implementation of plans intended to accomplish a firm’s vision. Strategy, mission and strategic goals in the business environment within which it operates. Implementation of strategy is a central constituent of the process of strategic management and is seen as the procedure that transforms the created strategy into actions and then outcomes to makes sure that the missions, strategic, strategic objectives and vision of the firm are successfully accomplished as planned. Strategy implementation is the major requirement for effective business performance and success. According to Carroll et al, (2005) for the last two decades, formulation of strategy has been broadly considered as the most vital constituent of the process of strategic management, nevertheless, latest research demonstrates that implementation of strategy other than formulation of strategy alone, is the major requirement for quality business performance. Additionally, there has been a wide identification that the most significant difficulties in the area of strategic management aren’t connected to formulation of strategy, but other to implementation of strategy and that great failure rate of firm’s initiatives within a dynamic business atmosphere is mainly as a result of pitiable implementation of novel strategies (Carroll et al, 2005). According to Kaplan and Norton (2004) leadership and particularly strategic leadership is one of the major drivers of efficient strategy implementation. Nevertheless, a lack of effective leadership, particularly strategic leadership by top management of a firm is one of key obstacles to efficient strategy implementation. Strategic leadership is the ability of a leader to envision, anticipate and maintain flexibility and empower other people to develop strategic transformations as necessary. Strategic leadership is multifunctional and it entails managing via other people and assists firms to cope wit h the ever increasing changes in modern day globalised business atmosphere. Strategic leadership needs the capability to integrate and accommodate both the external and internal business environment of a firm and to engage in and manage intricate information processing. Several actions demonstrate strategic and effective leadership that optimistically lead to successful strategy implementation and organizational success namely determination of strategic direction, establishment of balance organizational controls, maintenance of an efficient organizational culture, emphasis of ethical practices and effective management of firm’s resource portfolio. Strategic leaders pays a vital role in every of these strategic leadership actions. Subsequently, these strategic leadership activities positively lead to successful strategy implementation (Hitt et al, 2007). Effective leadership and organizational change According to Mcshane and VonGlinow, (2004), modern day organizations have been required to undergo significant organizational change as a result of globalization and technological developments. Effective management in the process of change management is especially vital as a result of all factors engaged in the organizational change. Leaders should be capable of influencing, motivating and enabling other people to contribute toward success and effectiveness of an organization. Stabilizing the firm after change is vital to the constant success of the organization. Organizational leadership behaviors directly influence the actions in work atmosphere that enhance change. Leaders act change agents and have the responsibility of change implementation and strategy (Jamali et al, 2006) There are seven key competencies to effective leadership that leaders must have in order to promote, implement and manage organizational change. These competencies include integrity, emotional intelligence, drive, self confidence, leadership motivation and business knowledge and leaders with these skills and competencies must be efficient in their leadership capability in spite of leadership style they favor (Gilley, 2005). Choosing the appropriate style of leadership to influence efficiency of organizational change is vital if huge organizational transformation is to be effective and successful. Useem, (2004 ) notes that diverse styles of leadership to consider entail inspirational or visionary leadership, situational leadership, commanding leadership, task oriented leadership and people oriented leadership. The appropriate style of leadership changes as situation shifts within a firm. An inspirational leadership style is useful when the leader is attempting to move individuals towards a common goal. Nevertheless, the coaching style of leadership is useful when a leader needs to effectively link what an individual wants within the goal of an organization. A commanding style of leadership offers apparent direction and is helpful during emergency situations. The situational leadership style is useful when leaders are needed to shift their leadership style on basis of how ready followers are (Useem, 2004). When radical organizational change is involved, having people oriented leaders other than task oriented leaders is better because these forms of leaders are capable of anticipating employees’ needs as they enable and motivate them to pioneer and accept organizational change. In addition, through utilizing Lewin’s three phase model for organizational change which entails initiating change, managing change and stabilizing change, the leaders can efficiently manage the process of change as well as the people involved in this process. Effective leadership in process of change management is especially vital due to the factors engaged in organizational transformation. As situations change, leaders should be capable to motivate and adjust employees to minimize uncertainty, fear and loss of staff morale. When a firm goes through main transformations, utilizing the most efficient style of leadership has a direct impact on the success of change, and the subsequent positive impact on organizational success (Bossidy, & Charan, 2002). Conclusion Effective leadership is the pivotal force behind the success of any organization. Successful organizations have effective leaders who promote organizational change, strategy implementation and organizational creativity and innovation. Effective leaders successful promote organizational innovation and creativity through designing the firm to promote a conducive atmosphere for creativity to thrive. Organizations also depend on leadership for effective strategy implementation and achievement of organizational goals. Strategic leadership actions positive lead to successful strategy implantation in an organization and strategic leadership action play a very vital role in determining the strategic direction of an organization. Leaders are also champions of organization change and they influence, enable and motivate other people to positively contribute toward success and effectiveness of a firm. They act as change agents and communicate the need for change to their followers. Bibliography Schein, E, 2005, Organizational culture and leadership. Organizational dynamics, Josey-Bass, San Francisco. DuPont, D, 2002, Leadership –An organization’s biggest competitive advantage, University of Calgary Enbridge Inc., Calgary. Hitt, A, Hoskisson, E, & Ireland, D, 2007, Strategic management: competitiveness and globalization, Thomson/ South Western , Ohio. Kaplan, S, & Norton, P., 2004, Strategy maps: Turning intangible assets into tangible results, Harvard Business School Press, Boston, MA. Flood, C, Carroll, J, Gorman, L, & Dromgoogle, T, 20005, Managing strategy implementation: An organization behavior perspective, Blackwell, Oxford. Freedman, M, & Tregoe, B, 2003, The art and discipline of strategic leadership, McGraw-Hill, New York. McShane, S, & VonGlinow, M, 2005, Organizational Behavior: Emerging Realities for the Workplace Revolution, McGraw-Hill, New York. Bohn, J, 2002, The relationship of perceived leadership behaviors to organizational efficacy. Journal of leadership and organizational studies, 9, 65-79. Schein, H, 2004, Organizational culture and leadership, John Wiley and Sons, New York. Drucker, F, 2004, Managing for results, Harper Collins Publishers, New York. Bossidy, L, & Charan, R, 2002, Execution: The discipline of getting things done, Random House, London. Askenas, R, Ulrich, D, Kerr, S, & Jick, T, 2006, The boundaryless organization: Breaking the chains of organizational structure, Josey-Bass, San Francisco. Useem, M, 2004, Leading up: How to lead your boss so you both win, Crown Business, New York. Jamali, D, Sahyoun, H, & Khoury, G, 2006, From bureaucratic organizations to learning organizations; An evolutionary roadmap, The learning Organization, 13(4), 337-352. Read More