STRM042: Leadership and Organizational Performance Literature Review

This literature review examines the critical issues surrounding leadership and organizational performance in the 21st century. It explores the concept of sustainability and how it is influenced by effective leadership, focusing on key competencies, differences between classical and modern leadership, causes of changes in leadership competencies, and the role of leadership in organizational sustainability. The review highlights the importance of communication, innovation, and diversity management in contemporary leadership, emphasizing the impact of globalization and market competition on organizational performance. Ultimately, it argues that effective leadership is crucial for maintaining organizational sustainability through adaptability and strategic decision-making in a rapidly changing business environment.

Running head: LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
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Table of Contents
1. Introduction..................................................................................................................................2
1.1 Purpose of the review............................................................................................................2
2. Theme 1: Understanding the concept of sustainability...............................................................2
Theme 2: Understanding the Key competencies faced by 21st century leaders..............................3
Theme 3: Similarity or differences between modern and classical leadership capabilities.............5
Theme 4: Causes of changes to leadership competencies...............................................................6
Theme 5: Effective Leadership and sustainability of the organizations..........................................7
7. Conclusion...................................................................................................................................8
References........................................................................................................................................9

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1. Introduction
The growth of the businesses in the market depends on the identification of the various
issues faced by the same while operating in the market. Effective leadership styles help the
organizations to maintain the sustenance of the organizations through continuous innovations.
The key qualities of leadership help in facilitating the sustainable approach of the business in the
respective markets. The identification of the change needs in the organizations and the
management of the modification is an important function that is undertaken by the leader, which
helps the business to maintain its sustenance. The sustainability of the business is dependent on
the continuous innovation that is planned by the organizations in the market. The major aspects
of the change depends on optimization of the productivity and the identification of the different
issues that might be faced by the business.
1.1 Purpose of the review
The area of the research is Sustainability is the key requirement of the organizations in
the 21st century, which is influenced by the effectiveness of leadership. The research will be
dealing with the factors that influence the sustainability of the organizations and the manner in
which Leadership plays an important role in maintaining the sustainability of the business. The
review will be helping to identify the different aspects of the change and the manner in which the
change can be facilitated in the performance of the business in the market.
2. Theme 1: Understanding the concept of sustainability
Sustainability of the organization is characterized by the administration of the financial
and other systems through the proper functioning of the business in the market. Key elements of

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the change in the functioning of the organization are based on the sustainability of the functions
in the market. Hoon Song et al. (2012) stated that every organization faces a life cycle in the
market based on the requirements and the preferences of the customers but the sustenance of the
organization in the market is ensured through evolution of the same as per the changing trends.
Theme 2: Understanding the Key competencies faced by 21st century leaders
The key competencies that are faced by the 21st century leaders are dependent on the
enumeration of the transformational change that is focused by the business to bring in
improvements in the market structure. Von Krogh, Nonaka and Rechsteiner (2012) stated that
the understanding of the nature of transition that is planned by the firms is dependent on the
improvements within market structure. However, Yukl (2012) argued that the leadership of the
21st century is affected through the inefficiency in the diversity management and the manner in
which it affects the smooth functioning of the business.
On the other hand, the competencies relating to the Communication that is undertaken
by the managers in the businesses have affected the performance. According to Samad (2012),
communication that is undertaken by the mangers are affected through the different mindsets and
the perceptions of the people working in the organization. Batool (2013) stated that diversity in
the workforce has thereby affected the understanding of the different factors that affects the
communication that is undertaken by the leaders for bringing in transformation in the business.
However, Goetsch and Davis (2014) argued that the utilization of the varied platforms of
communication like the social media and the intranet has helped in undertaking the changes in
the organizational structure as per the objectives of the organization. The changes in the structure
and the functioning of the business are required to be communicated to the workforce for the

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smooth functioning of the same. However, the barriers to communication due to the diversity in
the workforce results to ineffectiveness in the leadership capabilities in the 21st century.
Cavazotte, Moreno and Hickmann (2012) stated that the 21st century leadership is affected by
the impotence of the communication practices that are undertaken by the ;leaders for conducting
effective leadership as per the market orientation.
Innovation is again an important criterion on which the leaders of the organization must
focus to bring in transformation through the assessment of the improvements that the transition
might facilitate. McCleskey (2014) stated that the continuous innovation that is planned by the
businesses is affected through the approaches of the 21st century leadership as their leadership
style and approach affects the sustainability of the business in the markets through innovations.
Yeh and Hong ( 2012) stated that the understanding of the type of innovation and the
identification of the manner in which it can be implemented on the organizational cultures is an
important decision that is undertaken by the leaders which affects the functioning of the business
firms in the market.
Wang et al. (2014) stated that the complexity in the fast moving businesses of the 21st
century has also affected the type of leadership that is undertaken by the leaders of the
organizations. Grant (2012) argued that the complexity in the business systems affected the
organizational performance in the markets. The various forms of complexity is based on the
understanding the position of the business to bring in changes in the competitive markets.
McDermott et al. (2013) stated that the evolving change needs of the organization and the
manner in which the change can be facilitated helps in maintaining the paradox of the different
elements of the change in the situation of the business in the competitive markets.

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Theme 3: Similarity or differences between modern and classical leadership capabilities
Nixon, Harrington and Parker (2012) stated that there are various changes in the
leadership attitudes based on the changes in the situations in the market of the organization. The
major aspects of the change is backed by the competitiveness of organizations and their needs of
sustaining in the markets. Noruzy et al. (2013) stated that the shifts in the leadership capabilities
are based on the amenities that support the smooth functioning of leaders in organizational
structure. Key aspects of the modifications that is undertaken by businesses are dependent on
understanding of needs of leaders and the manner in which their leadership affects the
functioning of the businesses. Different levels of the change in the structure of the business are
dependent on the decision making functions of the leaders. McCleskey (2014) stated that the
enumeration of the needs of the enterprise is dependent on the identification of the different
competencies in the market. The differences in the classical and modernist capabilities of the
leaders are identified through the challenges that are faced by the same in the market situation.
The classical leadership capabilities were dependent on identification of issues that are faced by
the people. However, the different aspects of the change that is undertaken by leaders are
dependent on identification of the need of workforce and the organizations to cope up in the
highly competitive market structures. The changes in the communication procedures of the
organization have facilitated the growth of the leadership systems in the organizations. Yeh and
Hong ( 2012) stated that the proper functioning of the communicational procedures has helped in
enhancing the capabilities of the leaders from the classical age to the modern era. The different
aspects of the change in the functioning of the business are based on understanding the needs of
the organizations and the manner in which the sustainability of the business can be assured.

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Theme 4: Causes of changes to leadership competencies
The causes of the change in the leadership competencies are based on the transition in the
structure of firms. Wong and Laschinger (2013) stated that the advent of globalization has
enlarged the scope of businesses to undertake their specific activities in the international markets.
Batool (2013) argued that apart from the widening of the market scope, globalization has also
affected the market tension and competition, which has affected the sustenance of businesses in
market. The different aspects of the change in the performance of the business are dependent on
the competitiveness of the business.
Cavazotte, Moreno and Hickmann (2012) stated that the rise in the market competition
in the market has affected the performance of the organizations. It certain cases the leadership
style is affected through the market competition while identifying the different contingencies that
are faced by the organization in the market scenario. The different levels of tension that is faced
by the organizations are based on the proper functioning of the firms in the market. Goetsch and
Davis (2014) argued that the proper understanding of needs of the organization is based on
identifying the contingencies that are faced by the business firms in the market. The leadership
competencies in the 21st century are dependent on the understanding of the needs of the
organization to make their steady growth in the market (Bolman and Deal 2017). The different
aspects of the change that is undertaken by the organizations are supported by the needs of the
organization to maintain their sustenance in the markets. Von Krogh, Nonaka and Rechsteiner
(2012) stated that the proper understanding of the needs of the organization is based on the
functional attributes of the workforce through an assessment of the capabilities of the firm and
the objectives of the same to sustain in the competitive markets. Hoon Song et al. (2012) the
assessment of the needs of the organization is dependent on efficiency of the functions that are

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undertaken by the workforce. The efficiency of the workforce is based on the management style
of the leaders thereby the manner in which proper functioning of workforce can be facilitated.
The identification of the needs of the business is an important standpoint for the organizations to
perform in the modern days. Carter and Greer (2013) stated that sustainability of the businesses
is again a key concern which is reflected through the adaptability of the organization to bring in
changes in the systems.
Theme 5: Effective Leadership and sustainability of the organizations
Samad (2012) stated that the sustainability of the organizations has helped in maintaining
sustainability of businesses. Effective leadership of organizations has facilitated in maintaining
the different aspects of the change in the systems of the businesses. The identification of the
needs of the organization while functioning in the competitive markets is based on the
functioning of the business in the market (Dumdum, Lowe and Avolio 2013). On the other
hand, the mitigation of the issues that are faced by the workforce helps the management of the
organization to facilitate the change in the structure of the businesses in the market. The
mitigation of the different factors are based on the understanding of the needs of the
organization. Therefore, the leadership of the organization plays a major role in undertaking the
sustainable approach of the business. García-Morales, Jiménez-Barrionuevo and Gutiérrez-
Gutiérrez (2012) stated that the decision making attributes of the leaders helps in maintaining the
paradox of the change. Identification of the needs of the organization to comply with the
competitive business environment helps the business firms to sustain in the market.
Yukl (2012) stated that the motivation of the employees helps in the proper management
of the organization. The motivation of the employees in the business and the proposal of the best

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possible models help the leaders to bring in the sustenance in the business. Identification of the
objectives of the business and calculation of capabilities of the same has facilitated organizations
to bring in changes as per the needs of the business in the markets. Sustainability of the business
in the market is based on the functioning of the business to bring in the change (Choudhary,
Akhtar and Zaheer 2013). Alternatively, the idealities of change in organization are dependent
on dependence of the approach that is undertaken by the leaders. The contingencies that are
faced by the organization while performing in the international markets has helped in ensuring
the different aspects of the change in the market scenario. On the other hands, the identification
of the changes in the market scenario has helped the organizations in bringing forth different.
7. Conclusion
Therefore, from the above analysis it can be stated that the proper performance of the
organizations are facilitated through the performance of the workforce as per the market criteria.
On the other hand, the identification of the needs of the organization has helped in ensuring the
changes that the leaders are required to take as per the needs of the same in the market. The
decision making attributes of the leaders and the motivation of the workforce has helped in
bringing forth changes in the systems of the organizations as per the needs of the customers in
the market. The different factor that affects the performance of the business is dependent on the
understanding the needs of the business to bring in changes in the performance of the business in
the market.

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References
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Bolman, L.G. and Deal, T.E., 2017. Reframing organizations: Artistry, choice, and leadership.
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Cavazotte, F., Moreno, V. and Hickmann, M., 2012. Effects of leader intelligence, personality
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