The paper "The Impact of Effective Leadership on Organization Performance" is a good example of management coursework. The modern business environment is volatile, full of uncertainties as well as stiff competition, which exposes an organization to various opportunities and challenges. As a result, organizations have embarked on a mission to create competitive advantages on how they can formulate strategies appropriate to enhance their performance (Jeramilo et al. , 2005). Unlike in the past, when organizations focused mainly on financial performance, nowadays information development has changed their competitive background into the immaterial assets and the leadership effectiveness from the past material financial performance.
Thus, organization performance is measured not only on financial success but also on intangible indices such as customer satisfaction and quality which can be used to evaluate the organization’ s performance and amalgamate competitive advantage. Effective leadership is one of the key elements in enhancing organizational performance in terms of financial and non-financial perspectives. This essay seeks to support the statement that, “ Organizational success is determined by effective leadership. ” Effective Leadership and Organization Performance Leadership in an organization is pivotal in the realization of the organizational goals.
There are various leadership connotations applied by managers in an organization. They entail autocratic, democratic, transformational, transactional, laissez-faire, as well as servant leadership. Leadership style entails all kinds of approach and capability directed at realizing organizational goals and further influences all activities within the organization. Leadership style is a form of a relationship that an individual applies his rights and methods to influence many people towards a common goal (Wang et al. , 2010). Nevertheless, leadership styles may be effective or ineffective depending on the situation.
Effective leadership is concerned with satisfying the needs of the employees, customers and stakeholders, which collectively steer performance. Wang et al. (2010) believe that effective leadership is directly related to organizational success. It is sometimes difficult to define effective leadership as it is based on varying factors and characteristics determining how it is measured in order to be regarded as effective. Leadership entails creativity, values, vision, ethics, knowledge, charisma, among other things (Brindusa, 2012). An effective leader should have a purpose and a stable personality and ability to put that purpose into action.
The leader has the dedication, vision, integrity, and is creative and open to people and makes sure that credit for performance is given to all staff and at the same time be ready to take the blame for failures. An effective leader is flexible due to the volatile business environment and globalization process (Sashkin & Sashkin, 2003). The leader acts as an instrument of change and the center of solemnity, he can enable individuals and the organization as a whole to be successful while maintaining customer satisfaction. The various leadership style applied in the management of organizations has to be effective for success to be realized to be it in a profit or non-profit organization.
Effective leadership styles that are believed to enhance performance entail; transformational or visionary leadership, servant leadership, and democratic leadership. Transformational leadership is a modern form of leadership where the leader acts as a role model, inspires employees and challenges them to be more engaged in their work (Drucker, 2006). Transformational managers communicate with the subordinates, delegate responsibilities, know their employees and try to understand their strengths and weaknesses for them to find a way to boost their performance, hence boosting the performance of the whole organization.
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