Impact of Leadership on Organizational Performance

This report analyzes the impact of leadership on organizational performance and productivity. It discusses different leadership styles and their influence on employees and organizational objectives. The report emphasizes the importance of skilled workforce, flexible leadership, and up-to-date knowledge of industry trends for effective leadership. It also highlights the role of leaders in motivating employees and achieving individual and organizational goals.

Developing Academic
Communication Skills

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES ...............................................................................................................................5

INTRODUCTION
Leadership is the process of influencing the behaviour of people by making them strive
voluntarily towards attainment of organizational goals and objectives. It plays a very important
role in organization and creates a major impact on organizational performance and productivity.
The impact of leadership has a major influence on the working of organizational goals and
objectives. In this report, it involves critical evaluation of how the leadership and leaders have
major impact on the organizational productivity and performance.
MAIN BODY
According to Leonard, (2019), Leadership skills are not considered to be tangible.
Various leaders are born with the specific skills and abilities where anyone can improve their
skills related to leadership. With proper training and self-awareness , the leaders can boost the
impact on the team which mostly have tangible effect on the productivity and performance of the
organizational goals and objectives. The major responsibility of leaders is to look after the
employees in order to help them and motivate them internally in achievement of organizational
goals. The leaders need to considered his employees as a part of the team and need to carry out
various methods in order to improve employee performance and motivate them. The leaders
who empower and inspire have the ability to influence the entire team and their actions. A good
leader helps to build trust and loyalty and creates a productive and strong corporate culture. Its
important to monitor team on regular basis in order to understand the team better through
maintaining proper reports. A good leader enhances team involvement and engage with team in
order to discover all sorts of insights. In order to effectively achieve organizational goals, its
important to speak with the team and to always maintain a healthy work culture. In order to build
effective team its important to adjust leadership according to the need and changes to be made
according to team and following a suitable leadership style. Human resources professionals and
leaders provides benefits such as effective working relationships.
In order to develop good relations among employees its important to have positive interactions
that can lead to increasing morale, good feelings and improving work satisfaction. Company's
productivity and work efficiency can be affected by negative interactions which involves
uncertainty, confusion, tension and anxiety. A good leader takes time to help every individual in
an organization to develop skills for positive interactions. An effective working relationships
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provides various benefits to the organization. Happy workforce results in better job and timely
achievement of organizational goals and there are less chances of errors, increase in productivity
and customer service. Interaction at workplace helps in improving teamwork and results in
making the entire team effective and efficient. Leadership has the major impact when it comes to
developing company's morale. Leaders are focused on developing a positive morale among
employees which is not a easy job though. It involves considering employee' talents, general
personality traits and workloads. The business leaders need to examine the procedures and
processes in order to find out the areas which have regular backlogs and gaps. A Business leader
need to identify and establish systems in order to increase positive interactions in the workplace
on daily basis. It can involve regular feedback and telemarketing team. In addition to that
business leader need to think as a consumer in order to develop policies and increase the level of
customer satisfaction. The leaders need to find a way in order to boost the team and create a
healthy environment in order to develop and enhance interaction among employees. The leaders
need to boost the team as they cannot control every personality or interaction. In order to
increase productivity and performance of the organization.
As per the viewpoint of Abbsa Ibrahim, (2019) , Leadership is the process which involves
one or more person in order to influence a group or person to move in a certain direction. The
leadership is used in various aspects which involves business, social works, politics and business.
Leadership traits not only depend upon personal abilities or characteristics but also depends upon
the environment and situation the leader finds himself. An individual will only support an
organization if he believes that his personal goals or objectives are met. Leadership involves
direct connection to the direction of people. Due to ineffective leadership style of management,
many organizations has failed due to situations where workers are not able to control, organize or
coordinate because of the effect due to ineffective leadership style, high operating cost, low
productivity and uncooperative attitude of employees. Various organizations faces problems
related to personality, experience and intelligence. There are various types of leadership which
involves transactional leadership, transformational leadership and laissez-faire. In various cases
transformational leadership style is very effective, innovative, productive and satisfied in terms
of followers. Effective leadership involves various ways and integrates employees in order to
achieve organisation vision or objectives. It is the important and the most essential factor in
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project management. Leadership is considered to be the art of influencing others in order to
achieve desired results. The impact of leadership is dramatically demonstrated on a national scale
in every country. Any organization will face troubles if it does not have effective leadership. The
role of leader is to identify worthless objectives and build suitable and appropriate strategies to
achieve such objectives and motivate people in order to achieve and attain goals. Moreover,
leaders should examine each situation before making decisions and to observe and discover the
realities of one environment. The role of leader is to provide direction and coordinate the
activities in order to ensure consistency. The quality and image of leader is reflected through
attitude of subordinates and organization performance. It is a tool used in attainment of
objectives and goals and in order to achieve these goals every organization should ensure of
getting right leader that can handle the organization.
According to Mohamed Radwan, (2017), leadership is significantly critical towards
attainment of objectives and future sustainability. Effective leadership results in high performers.
It is a multifaceted concept where it is dependent on industries of operations and individual
organizations. The type of leadership determines the level of success and its influence on
stakeholders. Leadership should motivate and influence towards maximization of available
resources and better performance. Moreover, it should influence other towards implementation of
vision and mission through application of competencies and core values. Leadership has become
a critical aspect when it comes to running an organization. Organizational productivity can be
defined as the comparison among output and input set against a certain goal or expectations. In
order to get better results from the employees, the leaders must set specific skills which are
according to their responsibilities and duties. The first step towards influencing organizational
performance and productivity involves skilled workforce which includes skills that are developed
from past experiences, training and assigned responsibility. The nature of leadership determine
the how one employee will respond to a particular need.
In addition to that leaders should have a proper understanding of the industries and
markets of the organization they are operating in. The leaders need to aware and up to date with
the current trends which involves consumer preferences. The leaders should have first hand
information about the capability and industry trends of their products. This will help them to
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critically analyse the scenario and situations and employee's role in order to achieve maximum
results for both the individual employees and organization. Flexible leadership enables quick
response in different situation which emerges on regular basis. It involves letting employees to
find solutions to their own challenges and problems. Such kind of approach enables employees
to not be dependent on superiors and be critical thinkers and problem solvers. Through
delegation, it will result in creating a work environment which is highly responsive in nature,
which is innovative and creative. Different types of leadership have different impact and
influence on organizational employees and their ability to carry out the responsibility. There are
various leaders that have different ways of achieving organizational objectives and every leader
has a different way of creating an impact on the subordinates and organizational objectives. In
case of bureaucratic leaders, there is higher tendency of following procedures and rules.
Charismatic leaders motivates and inspires others to conduct their responsibilities with full
enthusiasm and passion. Organizations should encourage its leaders to merge two forms of
leadership in order to get maximum benefits. Transformational leadership style results in better
performance and is flexible in taking immediate decisions in order to treat the employees.
Transformational leadership leads to more customer satisfaction as customers need specialized
personal services.
CONCLUSION
From the above report it has been concluded that leadership plays an important role in
influencing the behaviour of people by making them strive voluntarily towards attainment of
organizational goals and objectives. In this report, it had been analysed that leadership has a
major impact on organizational performance and productivity. Moreover, different leadership
styles have different impact on the organization and its working. In addition to that it had been
analysed that leaders plays a vital role in overall development of organization and motivating
employees to achieve individual goals and organizational objectives.
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REFERENCES
Books and Journals
Impact of Leadership on Organizational Performance, 2019. [Online] Available through
<https://smallbusiness.chron.com/impact-leadership-organizational-performance-2970.html>
The impact of leadership on Employees, 2019. [Online] Available through
<https://www.grin.com/document/424831>
Impact of leadership on organisational performance, 2019. [Online] Available through
<https://www.journalbinet.com/uploads/2/1/0/0/21005390/39.02.06.19_impact_of_leadership_on
_organisational_performance.pdf>
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