Leadership Styles and Impact on Organisational Culture and Diversity Management

This report explores different leadership styles and their impact on organisational culture and diversity management. It discusses various leadership models and their effects on business operations. The report also highlights the role of leadership in shaping employee performance and the importance of cultural diversity in the workplace. Case study of Facebook's leadership approach is included.

LEADERSHIP
REPORT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Leadership Styles and models................................................................................................3
Impact of leadership on organisational culture and diversity management...........................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Leaders and managers are two important aspects that shapes valuable efforts being
produced in an organisation for completion of desired goals and objectives of the company. In
context to cooperate industry, leadership is defined as one's ability to motivate and influence
employees for extracting their best of their abilities and efforts for conducting various
operational activities of a business firm effectively (Alonso and et. al., 2017). On the other hand,
management refers to making effective planning structures and establishing proper coordination
in various departments of a firm for fulfilment of companies objectives. In this report we will
study different leadership styles and it's impact on organisational culture and diversity
management.
MAIN BODY
Leadership Styles and models
It refers to different behaviours adopted by leaders of a company in order to direct,
motivate, guide and manage different groups of people working in an organisation towards it's
growth (Huber, 2017). As it is known that a business firm has to operate it's business activities in
dynamic/changing business environment. It becomes tough to implement desired plans and
policies for management of a firm, sometimes due to change in government policies or any other
external factor leads to failure in business plans which results in wastage of firm's financial
resources. Leaders of a business firm plays an important part in providing needful motivation to
their employees and maintain positivity in the workforce. As per changing business environment
there are various leadership styles and models followed in cooperate industries some of them are
as follows with their estimated effects:
Democratic Leadership: In this leadership style, leaders of an organisation establishes
interactive environment with their employees. They conduct various board meetings for
consideration of valuable overview of their employees about companies policies. This type of
leader takes inputs of each employees, however final decision making remains in their hands
only (Jackson and Parry, 2018). This type of leadership style is adopted in various business

organisations to fulfil organisational goals by maintaining positive attitudes of employees
working in the workforce and is commonly effective.
Autocratic Leadership: This type of leadership style is inverse of democratic style of
leadership. In this leader makes decisions regarding various operational activities of a firm
without taking inputs from their co workers (Zhao, Hwang and Lee, 2016). The employees
working in an organisation are been guided to work as per decisions made by leader and are not
considered in formulating various business plans. This leadership style is rarely effective and
sometimes it leads to disputes within the workforce.
Laissez-Faire Leadership: In this leadership style, a leader of a corporate firm shows
full trust to it's employees. They puts full trust on employees of the company to formulate
various company policies and they tends to take note on overall performance of an organisation.
Although this leadership style is extracts best of employers abilities as they feel motivated to do
respective tasks of an organisation but it can limit their development and overall growth of the
company. Therefore this style is treated in sometimes effective category.
Transformational Leadership: In this, leadership style is always improving and
transforming as per companies conventions. This leadership style encourages it's employees to
push their respective efforts outside there comfort zone and explore different methods to do a
given task. In this leader sets a goal and time period for a given task and provides needed
motivation to it's employees to give their best (Munar, 2017). This leadership style helps an
organisation to adopt various innovative techniques to conduct operational activities of firm and
moulds efforts being produced in an organisation towards companies growth. However this style
sometimes leads to lack of professional work in business operations as employees don't get
professional training to approach new responsibility. Therefore, this style is sometimes effective
in conduction of respective business operations.
Models of Leadership
Situational and Contingency Theory: This theory is based on an assumption,
considering dynamic business environment, no particular leadership style can be best suited for
various business situations. As per believes of White and Hodgson, that various policies being
followed in a working structure should be flexible enough to bring in new changes as per
changing demands and needs of people. It relies on fact that the best form of leadership is that it
carries perfect balance between needs, behaviours and context. A good leader is not only defined

by it's quality but also it's ability to adopt and make accordingly changes in companies policies
as per current marketing trends.
Vroom's Expectancy Theory: This theory is based in the assumption that in order to
extract best of abilities from employees they should be provided with enough motivational
factors and a good working environment to boost up their individual efforts. The founder of
theory, Victor Vroom analysed that performance of respective employees working in an
organisation depends on various factors such as personality, knowledge, skills, abilities and
experience. Although, various employees working in an organisation posses different goals but a
leader of a firm can motivate them by considering these dynamic factors which are as follows:
 There is a positive relationship between performance and efforts
 Effective performance enables management to get desirable rewards
 Fulfilment of need is strong enough to make each efforts of employee count.
With context to Facebook, Mark Zuckerberg adopts transformational leadership style to
run it's operational activities effectively in the company. He is debate and challenges friendly
person. He always adopts different innovative approaches for conduction of it's various business
activities. As keeping in mind dynamic business environment he combines three styles of
leadership which includes democratic, autocratic and laissez-faire (Rowley and Ulrich eds.,
2016). He adopts basic principles of perusing organisation goals such throwing away time
consuming traditional hierarchies systems, giving needful appreciations, providing clear vision
towards organisational goals and effective usage of time as a resource and also guides his
employees to complete task in given time period. He shows trust to his employees and motivates
them to complete various task assigned to them in best way possible with optimum usage of
resources.
Impact of leadership on organisational culture and diversity management
Leadership is defined as shaping valuable efforts been produced in an organisation
towards achievement of organisational goals and objectives. It is an art of carrying clear vision
towards completion of organisation goals. It is been said that leadership style creates a huge
impact on effective performance of employees working in the workforce. By providing enough
motivational factors and taking care of goals of respective employees working in an organisation
the leader of a business firm is able to extract best out of their abilities and performances that
helps firm in perusing organisation goals effectively (Rosenbach, 2018). In current business

environment due to adoption of globalization wherein various business firm are expanding it's
business activities throughout the world. Leader plays distinctive role in carrying operational
activities of a company among various cultural groups effectively.
Corporate culture or organisation culture is termed as the way of doing various tasks of
an organisation. It tells about the environment in which operational activities of a firm is been
conducted. Various decisions passed by higher authorities in an organisation largely depends in
respective culture being followed in an organisational structure. According to Matt Grossman, in
context to Facebook, which is an American based company, that was founded 16 years from now
i.e. on 4 Feb. 2004 by Mark Zuckerberg. The workforce has it's headquarter in California, U.S.
Leaders of chosen organisation adopts various effective leadership techniques for keeping
positive attitudes of employees towards organisational policies. Sheryl Facebook's CEO took a
revolutionary step for fighting with current racial disparities in U.S., the company announced to
support black owned businesses and is committing to increase employment opportunities for
blacks in upcoming five year plans. This worked as delivering motivation to their regional
workers, producing efforts towards companies betterment and also helped in increasing
employees loyalty for respective organisation. In this way leaders of Facebook played a master
stroke keeping in mind companies social responsibility and creating a healthy impact on various
cultural people working in structure that resulted in creation of companies good reputation in the
marketplace.
Effective leadership in an organisation have great impact on companies culture and it's
diversity management. With proper setting up of agenda,defining correct job roles, and
mentorship helps in attaining professionalism of work. It helps in effectively use resources of a
given firm and carries the company towards success of it's desired goals. Following are the
various impact of leadership styles on organisation culture and it's diversity:
Leaders helps in rebuilding companies culture: Improper culture of a company can
lead to disputes in an organisation. It could be the affect of poor leadership style being used
previously in work structure, however, by adopting correct leadership style the management of a
business firm can revive it's business culture and back tracking employees efforts for completion
of organisational goals.
Accountability: An effective leadership style of a business organisation helps in
increasing accountability in effective working of a firm. It establishes respective roles for each

department of the company and their accountability for one another. This helps in building up of
good coordination in the workforce which ultimately contributes towards it's growth.
Mentorship: An effective leadership of an organisation helps in core development of
individual personal skills and abilities for conduction of business activities more efficiently.
Providing mentorship to various cultured people working in an organisation contributes their
valuable efforts towards companies growth and helps in evaluating future business opportunities
to ensure growth of a business firm.
Employee recognition: This function of leadership helps in boosting up of moral of
employees of the business firm. In this respective employees are been applauded for their good
work and feeling of belongingness arises in an organisation which also enables to establish
positive working environment in the work structure.
Cultural changes in working practise of organisation
With adoption of globalization that allowed various business organisations to expand
their business tiers and to compete with world economy. It huge platform to a business
organisation to increase it's market presence and to sell there products or services globally. It
resulted in employment of various culture people in an organisation. It becomes important for
leaders of a business firm to manage respective cultural groups working in a firm to maintain it's
healthy working environment (Shahbaz and Shahbaz, 2020). Companies culture folds efforts of
the workforce and provides better direction to an organisation to work as per guidelines towards
success in it's plans. It enables the firm to approach it's desired objectives as a team rather then
individual efforts. By maintaining good culture in working structure of a company, it helps in
boosting up of it's employees performance and gives desirable result to valuable efforts of
employees.

CONCLUSION
From the above report it can be analysed that there are various leadership styles being
followed in a business organisation. Leaders of respective company moulds valuable efforts of
it's employees towards accomplishment of desired goals and objectives of an organisation. An
effective leader of a firm carry it's business activities for completion of organisational goals
keeping in mind respective individual goals of various employees as well. Leadership helps in
managing various cultural groups of people working in the workforce and provide them enough
motivation to extract maximum output of their abilities and increasing productivity of the
business firm.

REFERENCES
Books and journals
Alonso and et. al., 2017. Leadership styles and corporate social responsibility management:
Analysis from a gender perspective. Business Ethics: A European Review. 26(2).
pp.147-161.
Huber, D., 2017. Leadership and nursing care management-e-book. Elsevier Health Sciences.
Jackson, B. and Parry, K., 2018. A very short, fairly interesting and reasonably cheap book about
studying leadership. Sage.
Munar, B. S., 2017. Leadership Styles of Filipino-American Senior Enlisted Leaders and
Commissioned Officers in the United States Navy.
Rosenbach, W. E., 2018. Contemporary issues in leadership. Routledge.
Rowley, C. and Ulrich, D.O. eds., 2016. Leadership in the Asia Pacific: A global research
perspective. Routledge.
Shahbaz, K. and Shahbaz, K., 2020. Rosenthal Effect and Productivity in Corporate Sector:
Rosenthal Effect and Leadership Styles as the Predictors of High Productivity among
Banking Recruits.
Zhao, X., Hwang, B. G. and Lee, H. N., 2016. Identifying critical leadership styles of project
managers for green building projects. International Journal of Construction
Management, 16(2). pp.150-160.
Online
Facebook Outlines Plans to Improve Workforce Diversity, 2020 [online], available
through<https://www.wsj.com/articles/facebook-outlines-plans-to-improve-workforce-diversity-
11592506973>