Leadership Styles and Organisational Performance

MGMT803 Organisational Behaviour and Management
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1 Introduction
Leadership is considered as one of the most vital factors that contributes to the well-being of
an organisation. It is the efficacy of the leader that determines the achievement of the strategic goals
of a company and motivation that is instated in an organisation. However, the inability of the leader
hinders the performance of organisation. It has been found that the nature of leadership determines
the overall organisational performance and determines the level of motivation within the latter. The
report will analyse literary works regarding that have similar themes and critically evaluate the
viability of the same in modern managerial context.
2 Overview of Leadership style and organisational performance
2.1 Styles of leadership and gaps in leadership
The main aim of the articles was to discuss the style of leadership that exists. The aim of the
article by Anderson and Sun (2017) was to critically evaluate the styles of leadership that exists and
the impact of the same on the work culture that exists within an organisation. It has been highlighted
in the article, that the culture within an organisation and the performance of the organisation as a
whole varies and it depends on the style of leadership that exists in the framework of the
organisation that determines the same. In the article, ‘Impact of dysfunctional leadership, the author,
Savas (2019) argued that literary articles often emphasise more on the leadership styles that are
functional in nature and neglect the dysfunctional styles of leadership. The former stated that the
impact of the dysfunctional leadership shapes the way the organisations behaves which ultimately
determines the efficiency of the organisational performance. Anderson and Sun (2017) stated that
leadership styles that are focussed on are general leadership styles such as transformational or
transactional leadership. The authors stated that the leaderships styles can be broken down into
many more categories and are named after their functionality. The leadership styles that have been
mentioned by the authors are ideological, pragmatic, authentic, ethical, spiritual, distributed and
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integrative public, and servant leadership. It has been stated that these leadership styles can be used
to gain a broader image of the leadership and its effects on the functionality of an organisation. On
the other hand, Savas (2019) stressed on the negative styles of leadership such as Authoritarian,
narcissistic, Machiavellian, unpredictive and abusive leadership and stated that they are
dysfunctional styles of leadership. It was also stated by the author that the leadership styles should
not be tolerated as they are responsible for hindrances in functionality in an organisation.
2.2 The impact of leadership style on employee motivation
Naile, I. and Selesho, J.M., 2014. The role of leadership in employee
motivation. Mediterranean Journal of Social Sciences, 5(3), p.175.
The above article highlights the role that the style of leadership plays in motivation of
employees. Thirteen schools participated in the study and over one hundred and eighty teaching staff
from the schools took part in the study. The schools that took part in the study were supposedly
performing well below the established benchmark and thus, the study was undertaken in order to
find out whether the leadership style of the schools determined the motivation of the staff which
would ultimately be responsible for the performance of the students. The study was undertaken
using questionnaires that were developed by the clerical staff of the schools. The variations in styles
of leadership were stated in the study, the differences between transformational and autocratic
leadership. It was stated that transactional leadership takes into consideration motivation,
communicates values effectively and employs optimism while trying to solve problems. On the
other hand, the dysfunctionalities of autocratic leadership where highlighted. It is a style of
leadership that is characterised by the leader displaying selfish behaviours, treats the subordinates as
mere workers and not human beings and makes decisions that are considered to be unilateral in
nature. The authors mentioned that motivation is a continuous and a complex process that does not
only depend on monetary rewards. In order to motivate the employees, the needs of the employee
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