University Report: Impact of Leadership on Organizational Performance

This report investigates the significant impact of leadership on organizational performance. It begins with an abstract and table of contents, followed by an introduction that outlines the problem statement, research objectives, and research question. The literature review explores the relationship between leadership, honesty, communication, decision-making, and organizational performance, examining various leadership styles and their effects. The methodology section details the research philosophy, approach, design, data collection, and analysis plan. The data analysis and discussion chapter presents correlation and regression analyses, along with a normality plot. The conclusion, recommendations, limitations, and suggestions for future work are also provided. The report utilizes secondary quantitative data to assess the impact of leadership on organizational performance, offering valuable insights and recommendations for future studies. The report is a comprehensive analysis of leadership's influence on business outcomes and employee behavior.

Running head: IMPACT OF LEADERSHIP ON ORGANIZATIONAL PERFORMANCE
Impact of Leadership on Organizational Performance
Name of the Student:
Name of the University:
Author’s Note:

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IMPACT OF LEADERSHIP ON ORGANIZATIONAL PERFORMANCE
Abstract
This report is based on creating an understanding of how leadership has an impact on the
organizational performance. The paper has therefore constructed a background related to
leadership and organizational performance and accordingly this has been helpful in creating the
objectives of the research. The literature review has explained what other researchers have
opined on this topic and thereafter the secondary quantitative data has been used for the purpose
quantitative data analysis. The results that have been gathered has been able to provide certain
outcome that signifies the level of impact leadership has on organizational performance by
selecting few leadership variables and accordingly recommendations for future work has been
addressed as well.

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IMPACT OF LEADERSHIP ON ORGANIZATIONAL PERFORMANCE
Table of Contents
Chapter 1: Introduction....................................................................................................................4
1.1 Problem Statement.................................................................................................................4
1.2 Research Objectives...............................................................................................................5
1.3 Research Question.................................................................................................................5
Chapter 2: Literature Review...........................................................................................................6
2.1 Organizational Performance..................................................................................................7
Chapter 3: Research Methodology................................................................................................10
3.1 Introduction..........................................................................................................................10
3.2 Research Philosophy............................................................................................................10
3.3 Research Approach..............................................................................................................11
3.4 Research Design..................................................................................................................11
3.5 Data Collection Process.......................................................................................................12
3.6 Data Analysis Plan...............................................................................................................12
3.7 Ethical Consideration...........................................................................................................12
Chapter 4: Data Analysis and Discussion......................................................................................14
4.1 Introduction..........................................................................................................................14
4.2 Correlation Analysis............................................................................................................14
4.3 Regression Analysis.............................................................................................................15
4.4 Normality Plot.....................................................................................................................17

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Chapter 5: Conclusion, Recommendation, Limitation and Future Work......................................18
5.1 Conclusion...........................................................................................................................18
5.2 Recommendation.................................................................................................................18
5.3 Limitation of the Study........................................................................................................19
5.4 Future Work.........................................................................................................................19
Reference List................................................................................................................................20
Appendix........................................................................................................................................24

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Chapter 1: Introduction
The aim of any company is not only to exist in the market but is to sustain their survival
by developing their level of performance. In order to stay in line with the demands and the needs
of the competitive economy, it is the responsibility of the companies to enhance their
performance (Birasnav, 2014). The researches that have been taken previously have addressed
that the leadership role plays a significant role in order to enhance the performance of an
organization and attain their aims and objectives. On the other hand, the results that have been
gathered from the earlier researches in accordance to the impact of leadership on the
organizational performance have been mixed and therefore the construction of this paper based
on this topic has become vital in order to have a clear understanding of the level and kind of
impact leadership has on the performance of an organization.
1.1 Problem Statement
The companies that are operational in the global market has the idea of maintaining profit
and in order to attain their level of profit, it is essential for the companies to stay alive in the
market in a sustainable manner. There are several factors that assists in the development of the
performance of the companies and one of the essential factors has been leadership style that is
followed by the company and the kind of leadership that is undertaken by the company (Hartnell
et al., 2016). The previous researches have shown leadership impacts on the performance of the
companies but the problem that is existent is that with the advent of time as the market and the
operational style changes in order to cope with the market the impact of leadership on
organizational performance changes as well (Zhu et al., 2015). Therefore, it has become essential
to understand the impact and conclude in that manner.

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1.2 Research Objectives
The objectives of the research are:
 Assess the impact of behaviour of leadership on the organizational performance
1.3 Research Question
The question on the basis of which the research would move forward has been explained
as follows:
Q1. How does leadership impact the performance of an organization?

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Chapter 2: Literature Review
The development of effective leadership within an organization is possible with the help
of honesty, integrity and ethics and these are the aspects that are helpful in influencing and
motivating employees within the company. The effective level of communication of the leader
and their skills of communicating their ideas to the employees enable the level of performance of
the employees and accordingly the development of the performance of the business (Wang et al.,
2014). The level of communication is helpful for the development of a company because of the
fact that the results that changes that are taking place in the market and the changes that are
required by the management can be easily be conveyed to the employees so that they can
perform accordingly. The level of decision making of the leaders is helpful in the development of
the performance of the companies (Masa'deh et al., 2016). The other aspect that is essential from
the part of the leaders has been their attitude and sentiments as in order to be an effective leader,
the views, opinions and the grievances of the employees needs to be heard as well in order to
resolve them and motivate them to perform in an effective manner with the help of which the
performance of the companies can be developed (Day et al., 2016).
The efficient leadership style is featured by the abilities of the companies in order to
incorporate changes and thereby enhance and motivate the employees in order to perform in such
a way that they are able to meet the aims and objectives of the companies (Valmohammadi, &
Ahmadi 2015). It is the duty of the leaders to understand the kind of change is beneficial for the
companies in order to enhance their performance and maintain competitive edge in the market.
Eisenbeiss et al., (2015) explained that effective leader try to attain their target through their

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employees by taking assistance of the above mentioned factors. The leaders even look to
incorporate positive changes within the working environment in order to improve the journey of
the business and the positive changes bring in positive vibes that are helpful in the development
of the performance (Santos et al., 2015).
The leadership style and the quality is even dependent on the key performance indicators
and this aspect is considerably taken into account in order to improve their business. The use of
the data in a proper manner and accordingly constriction of strategic plans and policies have
significant role to play as well (Saleem, 2015). These are some of the mostly researched aspects
related to leadership style and quality and therefore much focus is given by the management on
these aspects in order to enhance the performance of their companies (Yang et al., 2014).
Barrick et al., (2015) expressed the views that leadership attitude has significant amount
of impact on the organizational performance and the attitude and behaviour disclosed by the
leaders depend either on the kind of work they want the employees to get done, the attitude of
the employees and the features and the characteristic of the leader itself.
2.1 Organizational Performance
The extent of performance is dependent on the knowledge over the various elements that
are related to the alterations that is being improvised by the companies in order to incorporate
developments in the same market scenario (Jyoti, & Dev 2015). The changes that are required to
be incorporated within the company is reliant on the objectives of the company and the desire to
exist in the domestic and international economy (Jacobsen, & Bøgh Andersen 2015). The
innovations that are useful in the enhancement of the organizational performance are hugely
dependent on the decision making capabilities of the leaders. The organizational performance is

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directly related to the leadership skills and therefore the nature of leadership would determine the
development of the performance (Fu, & Deshpande 2014). The development of the company
performance can be understood once the companies are able to develop their business better than
the competition that is existent in the market. The understanding of the market competition is
dependent on the qualities of the leader and therefore they take additional steps in order to
understand the same (LePine et al., 2016). The performance of the companies is even dependent
on the quality that is rendered by the companies with the help of the services and the products
that are offered by them. Therefore, leaders have the role to monitor all these aspects with the
help of which the companies can maintain their quality benchmark and even improve on the
same in order to enhance their organizational performance. The companies operational in the
economy looks to enhance their performance in the economy and hence the role of the leaders
and their leadership style and quality has a significant role to play (Herman, & Chiu 2014).
There have been several other researches, which have indicated that with the advent of
time organizational performance has been dependent on certain other factors as well. Boehm et
al., (2015) cited that the key performance indicators of the leaders have an influence on the
performance of the companies. The understanding of the key performance indicators and the
development of strategies based on this aspect have a significant role in the performance of a
business.
Boies et al., (2015) explained that use of the data that is available to the leaders are even
essential in the development of the business because of the fact that the companies are able to
develop their business accordingly. The effective use of the data that is available to the leaders
assist them in constructing plans and policies and regulate the operational activities of the

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company with the help of which the companies are able to enhance their business and maintain
competitive edge in the market (Caillier, 2014).
Strategic plan of a company is another factor that has a crucial role in the development of
the performance as the effectiveness of the strategic plans improve the functionalities of a
business and the construction of strategic plans are dependent on the leaders (Alagaraja, & Shuck
2015). These features are the aspects that should be available among the leadership qualities and
therefore it can be extensively expressed that qualities of leadership have influence on the
performance of the companies.

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Chapter 3: Research Methodology
3.1 Introduction
The methodology of the paper tries to cover the aspect of the kind of data that would be
used for the purpose of analysis in accordance to this topic. The other aspect that is covered in
this section of the paper has been the development of the design, philosophy, design and the
method that would be used in order to collect the valid and the authentic data. The collection of
the data would determine the process that would be used for the analysis purpose.
3.2 Research Philosophy
The philosophy determines the recognition of the several elements that re related to the
efficient paradigm of the research. This is helpful in ascertaining the research elements and the
process with the help of which the analysis would be able to give out the desired end result of the
research (Breevaart et al., 2016). There are four kinds of philosophies that can be used by the
researcher and they are pragmatism, realism, positivism and interpretivism. In this manner, the
researcher in order to make use of the most effective paradigm has looked to select the
positivism philosophy as the analysis that would be done would be based and reliant on the use
of several scientific tools and processes. This would assist the researcher in discovering the
numerous elements of the alterations in the research along with the variables and the constants
that constitutes of the research elements.

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3.3 Research Approach
The approach refers to the extensive use of the models and the structures that are
available to the researchers to make use of in order to collect the data and these models,
structures and theories are the basis on which the researcher would gather precise data for the
concerned topic. There are two sorts of approaches that the researcher can be utilised and they
are deductive and inductive (Belias, & Koustelios 2014). However, as this research would be
based on the secondary data, the researcher would be making use of theories and models that
have already been used by some other researcher and therefore the researcher has decided to
make use of the deductive approach with the help of which researcher can assess numerous
articles and journals in order to bring out any relevant information that would be useful for the
development of the results relating to the impact of leadership on the organizational
performance.
3.4 Research Design
The design tries to highlight the aspect on the basis of which the data would be collected
and the analysis of the data would be done. The aspect in relation which the analysis would be
done is dependent on the topic. There are three designs that are available to the researcher and
they are inclusive of the descriptive, exploraoitry and explanatory research design (Dubey et al.,
2015). It is known that the topic of the research relates to the understanding of the impact of
leadership on organizational performance and therefore the researcher has chosen explanatory
design in order to ascertain the cause and effect relationship with the help of the explanation of
the probable results can be attained. The cause and effect relationship would be very useful in
gaining an understanding of the impact of leadership on the performance of the companies and
therefore this design is ideally suited for this paper.

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3.5 Data Collection Process
The gathering of the data is vital in order to assess the results with respect to which this
research has been undertaken. The researcher in this paper has chosen secondary data and
therefore data available from several sources would be taken into account in order to undertake
the analysis process that is essential for this paper. The researcher has selected organizational
performance to be the dependent variable and accordingly has selected leadership to the
independent variable within which key performance indicators, strategic business plans and
sources of management practices and knowledge have been considered to be the variables over
which the analysis would be undertaken. The data related to these variables have been collected
from several sources and specifically from Australian Bureau of Statisitcs (ABS) and data has
been related to the manufacturing industries operational in Australia in order to have an idea
about leadership in the manufacturing industries having an impact on their organizational
performance. The data has been based on the percentage of the contributions provided on these
elements and the data is for the time period of one year (2015-16).
3.6 Data Analysis Plan
The analysis of the data with the help of Excel Spreadsheet software with the help of
which the correlation and regression analysis of the obtained data has been done in order to have
an extensive understanding of the leadership impact on the performance of the organizations.
3.7 Ethical Consideration
An extensive plan has been constructed with the help of which steps can be ascertained in
order to take care of the ethics of the research and thereby the validity of the research can be
determined (Colbert et al., 2014). The researcher has maintained the codes of conduct and ethics
and therefore all the data has been collected from valid and precise sources especially from the

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government websites in order to have an extensive idea that the result attained is true and
authentic.

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Chapter 4: Data Analysis and Discussion
4.1 Introduction
This section of the paper would look to highlight and evaluate the data that has been
taken into consideration and this data would undergo extensive statistical analysis in order to
provide an idea related to the impact of leadership on the organizational performance of
manufacturing industries in Australia over a time period of 2015-16. The analysis would be done
with the help of correlation analysis and regression analysis with the help of which the overall
impact can be understood in an effective manner.
4.2 Correlation Analysis
Correlation
Sources of
management
practices knowledge
business's
strategic plan
or policy
Key
Performance
Indicators
(KPIs)
Organizatio
nal
Performance
Sources of
management
practices knowledge 1
business's strategic
plan or policy 0.811647372 1
Key Performance
Indicators (KPIs) 0.755838099 0.748302131 1
Organizational
Performance -0.317977466 -0.021164359 -0.069030802 1
The correlation analysis that has been undertaken has been done by analysing the
correlation of all the independent variables and thereafter correlation of the independent
variables have been done with the dependent variable. The results that have been obtained
signifies the fact that strategic plans and policies of the business has a positive and strong

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IMPACT OF LEADERSHIP ON ORGANIZATIONAL PERFORMANCE
relationship with the sources of management practices and knowledge as the value is very close
to 1. On the other hand, key performance indicator in the same way has strong and positive
correlation between sources of management practices and knowledge and strategic plans and
business as the outcome that has been attained has been close to 1 (Business Indicators -
Australian Bureau of Statistics. 2018).
The correlation analysis that has been done with the dependent variable and the
independent variables explains the fact that the dependent variable has negative correlation with
the independent variables and therefore explaining that there are no significant relationships
among the two. The correlation analysis therefore signifies the fact that the leadership based on
the business plans and strategies, key performance indicators and sources of management
practices and knowledge does not have an impact on the organizational performance of the
manufacturing companies in Australia.
4.3 Regression Analysis
The regression analysis has been done based on the tables that have been provided below:
Regression Statistics
Multiple R 0.530742073
R Square 0.281687148
Adjusted R Square 0.257047491
Standard Error 34.35582156
Observations 8
The regression statistics that have been prepared on the basis of the selected variables
explains the fact that R Square value has been 28% and the value is higher than adjusted R
Square value of 25.7% and this explains that there are no significant relationships among the

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dependent and the independent variables and none of the independent variables have significance
with the dependent variable (Business Indicators - Australian Bureau of Statistics. 2018).
Anova
df SS MS F Significance F
Regression 3 1851.458851
617.152950
2 0.522868083 0.68941
Residual 4 4721.289899
1180.32247
5
Total 7 6572.74875
Coeffi
cients
Standa
rd
Error t Stat
P-
value
Lowe
r
95%
Uppe
r
95%
Lower
95.0%
Upper
95.0%
Intercept
50.885
11746
28.903
94206
1.7604
90571
0.153
12911
4
-
29.36
5
131.1
35
-
29.36
5
131.1
35
Sources of
management practices
knowledge
-
2.1872
31535
1.7680
9683
-
1.2370
54158
0.283
72832
8
-
7.096
3
2.721
79
-
7.096
3
2.721
79
business's strategic
plan or policy
0.6605
45542
0.8359
50493
0.7901
7304
0.473
63419
4
-
1.660
4
2.981
52
-
1.660
4
2.981
52
Key Performance
Indicators (KPIs)
0.2584
20334
0.8636
2931
0.2992
25989
0.779
67060
5
-
2.139
4
2.656
24
-
2.139
4
2.656
24
Regression Function
Operational Performance=50.885−2.187∗Business Practices∧knowledge+ 0.66∗Business stratgies∧ plans+ 0.

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IMPACT OF LEADERSHIP ON ORGANIZATIONAL PERFORMANCE
The results that have been obtained explains the fact that the F-value is very much high as
the value is more than 0.05 and therefore explaining that no significance is present between the
dependent and the independent variables.
The results indicate that out of the three independent variables sources of management
practices and knowledge has a negative relationship with organizational performance as one unit
change in the sources of the management practices and knowledge would lead to -0.218%
change in the organizational performance, while the other two would have very low level of
impact on the organizational performance.
4.4 Normality Plot
0 10 20 30 40 50 60 70 80 90 100
0
20
40
60
80
Normal Probability Plot
Sample Percentile
Organizational Performance
The normality probability plot has explained the fact that the results that have been
obtained are not stable as there are variances in the plots and thereby explaining the fact that the
dependent variable does not have significance with the independent variables.

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IMPACT OF LEADERSHIP ON ORGANIZATIONAL PERFORMANCE
Chapter 5: Conclusion, Recommendation, Limitation and Future Work
5.1 Conclusion
The results that have been observed from this paper has been able to explain the fact that
leadership in accordance to variables that have been taken into consideration have negative or no
significant overall impact on the organizational performance on the manufacturing industries in
Australia as sources of management practices and knowledge have negative impact and on the
other hand the other two variables have very less impact on organizational performance. Hence,
the results that have been obtained has been able to address the objectives of the research as it is
seen that the results attained explains the fact that sources of management practices and
knowledge have negative impact on organizational performance, while strategic plans and
business and key performance indicators have low or no impact on the organizational
performance in manufacturing companies in Australia.
5.2 Recommendation
The recommendation that can be given from the analysis that has been attained from the
paper has been that impact of leadership on the organizational performance can be analysed in a
better way by selecting several other variables like the quality of the services of the leaders,
communication skills and quality of the decision making process as taking these variables would
lead to better and effective results. It is even recommended to undertake research by considering
a span of years in order to have a result that could be able to answer the topic in a much more
effective way.

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5.3 Limitation of the Study
The limitations that are related to this paper have been the shortage of time and
furthermore considering only three variables and a single year span. The use of numerous
variables like quality of the services of the leaders, communication skills and quality of the
decision making process and a larger span with adequate time would have provided results that
would be better and effective.
5.4 Future Work
There are scope of future work on this paper because of the fact with time there would be
several changes in the market structure as well the style of leadership and therefore assessment
of the same in a future course of time would provide different results so that comparison with the
current result can be made in order to realize the changes that have taken place.

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Appendix
ABS DATA
Sources of management
practices knowledge
business's strategic
plan or policy
Key Performance
Indicators (KPIs)
Organizational
Performance
52.8 95.6 80.3 17.6
31.9 15.1 46.6 6.7
23.0 18.7 53.5 1.2
19.5 24.2 20.8 74.5
24.3 8.3 21.3 18.6
12.1 21.1 15.3 7.6
18.9 11.5 5.1 1.2
9.3 16.7 38.9 72.5
(Source: Business Indicators - Australian Bureau of Statistics. (2018). Abs.gov.au., from
http://www.abs.gov.au/Business-Indicators)