Leadership and Organizational Performance Analysis: Aston Martin

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This report is a comprehensive analysis of the impact of leadership on the organizational performance of Aston Martin, a luxury automobile manufacturer. The study begins with an introduction that highlights the research problem, which stems from performance-related issues and declining profitability. The report establishes the research aim, objectives, and questions to guide the investigation. A literature review explores the concepts of organizational performance, the factors affecting it (organizational culture, leadership, training and development, and reward and recognition), and the concept of leadership itself. The methodology section details the pragmatic research philosophy, research approach, design, data collection, and analysis methods, alongside ethical considerations. The report aims to understand factors affecting organizational performance, examine the leadership-performance relationship, and recommend improvements for Aston Martin. The hypotheses state that effective leadership positively impacts organizational performance. The report concludes with a proposed timeline for completion.
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Running head: LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
A STUDY TO UNDERSTAND THE IMPACT OF LEADERSHIP ON THE
ORGANIZATIONAL PERFORMANCE OF A CORPORATION: A CASE STUDY OF
ASTON MARTIN
Name of the Student:
Name of the University:
Author’s Note:
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1LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
Table of Contents
1.0 Introduction................................................................................................................................3
1.1 Background of the Study.......................................................................................................3
1.2 Research Problem..................................................................................................................3
1.3 Research Aim.........................................................................................................................4
1.4 Research Objectives...............................................................................................................4
1.5 Research Questions................................................................................................................5
1.6 Research Hypotheses.............................................................................................................5
2.0 Literature Review......................................................................................................................5
2.1 Concept of Organizational Performance...............................................................................5
2.2 Factors affecting Organizational Performance of a Company..............................................6
2.2.1 Organizational Culture....................................................................................................6
2.2.2 Leadership.......................................................................................................................6
2.2.3 Training and Development.............................................................................................7
2.2.4 Reward and Recognition.................................................................................................7
2.3 Concept of Leadership...........................................................................................................8
2.4 Impact of Leadership on Organizational Performance..........................................................8
3.0 Research Methodology..............................................................................................................9
3.1 Research Philosophy..............................................................................................................9
3.2 Research Approach................................................................................................................9
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2LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
3.3 Research Design..................................................................................................................10
3.4 Data Collection Method.......................................................................................................11
3.5 Data Analysis Method.........................................................................................................11
3.6 Ethical Considerations.........................................................................................................11
4.0 Proposed Timeline...................................................................................................................12
References......................................................................................................................................13
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3LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
1.0 Introduction
1.1 Background of the Study
According to Forbes.com (2020), more than 82% of the business corporations in United
Kingdom do not take the help of effective leadership approaches and because of this they end up
losing more than £550 billion on yearly basis. Jing and Avery (2016) are of the viewpoint that
the usage of the framework of leadership had become an imperative one for the different
business corporations because of the wide-ranging benefits that it offers to them. For instance,
the modern-day business leaders render different services to the business corporations like the
training and development of the workers, motivating them, offering the required coaching,
mentoring and other similar services (Gordon 2017). In addition to these, they are entrusted with
the work of fostering the kind of workplace or organizational culture within the corporations
wherein the workers would be able to work effectively and therefore perform as per their
maximum potential (Orabi 2016). These in short are some of the most important why the
different corporations need to use the discipline of leadership for not only overcoming the
different issues that they are facing presently but also for the enhancement of their overall
organizational performance as well.
1.2 Research Problem
Aston Martin, established by Robert Bamford and Lionel Martin in London in 1913, is
one of the largest luxury automobile manufacturers in the nation of UK (Astonmartin.com 2020).
The concerned corporation is renowned all over the world for the high quality of luxury sports
cars and also the grand tourers offered by it to customers from all over the world. Aston Martin
is currently operational in more than 50 different countries and the net profitability registered by
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4LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
it in the year 2018 was £1,096.5 million (Astonmartin.com 2020). However, the concerned
corporation is presently facing different performance related issues which in turn had adversely
affected the profitability of the concerned corporation. As per the report of Ft.com (2020), the
corporation presently has lost 80% of its share value and on top on that the profit margin of the
corporation dropped from 13.5% (2018) to 12.5% in the year 2019. In addition to these, the
corporation is facing various manufacturing defects or for that matter performance related issues
presently which in turn had not only adversely affected its brand image but it had also been seen
that because of these issues its customers are switching over to the other automobile brands. It in
this particular context the research will try to analyze the manner in which the discipline of
effective leadership can be used for the enhancement of its organizational performance so as to
overcome the different issues that it is presently facing.
1.3 Research Aim
The aim of the research will be to analyze the impact of leadership on the organizational
performance of a business corporation in the particular context of the corporation Aston Martin.
1.4 Research Objectives
1. To understand the factors which affect the organizational performance of a business
corporation in the particular context of the corporation Aston Martin
2. To examine the relationship between leadership and the organizational performance of a
business corporation in the particular context of the corporation Aston Martin
3. To recommend ways through which Aston Martin can improve its organizational
performance through the usage of the framework of leadership
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5LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
1.5 Research Questions
1. What are the factors which affect the organizational performance of a business
corporation in the particular context of the corporation Aston Martin?
2. What is the relationship between leadership and the organizational performance of a
business corporation in the particular context of the corporation Aston Martin?
3. What are the ways through which Aston Martin can improve its organizational
performance through the usage of the framework of leadership?
1.6 Research Hypotheses
H1- Effective leadership positively affects the overall organizational performance of a business
corporation
H0- Effective leadership does not affect the overall organizational performance of a business
corporation
2.0 Literature Review
2.1 Concept of Organizational Performance
Eva et al. (2018) have observed that organizational performance is an analysis of the
outputs or the results derived by the corporations in comparison to the outputs that it intended to
derive, Adding to this, Para-González, Jiménez-Jiménez and Martínez-Lorente (2018) have
noted that the organizational performance of a particular corporation is generally being measured
or for that matter analyzed on the basis of its performance on three parameters, namely, financial
returns, shareholder return and the performance of its services or products in the market. More
importantly, it had been seen that these three factors are important since they directly influence
the growth or for that matter the future development of the corporation which as a matter of fact
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is the main focus of the business corporations in the present times. Furthermore, the
enhancement of organizational performance not only enables the business corporations to attain
their business goals, mission and vision but also helps them to earn the satisfaction of their
customers and thereby maximize their profitability (Alrowwad et al. 2017).
2.2 Factors affecting Organizational Performance of a Company
2.2.1 Organizational Culture
As discussed by Sani et al. (2018), organizational culture is perhaps the most important
factor which directly influences the overall organizational performance of a particular business
corporation. Nazarian, Soares and Lottermoser (2017) are of the viewpoint that if the workplace
or organizational culture within a particular corporation is not congenial then it is more likely
that the workers would not be able to perform according to their maximum potentiality which in
turn would adversely affect the overall performance of the concerned corporation and vice versa.
Thus, it becomes all the imperative for the business entities to take into account this particular
factor for the enhancement of their organizational performance.
2.2.2 Leadership
Imran, Ilyas and Aslam (2016) are of the viewpoint that the leaders within the workplace
setting are required to perform a plethora of job roles like motivating, coaching, mentoring,
training, inculcating an effective workplace culture, strategy formulation and others. In this
connection, it needs to be said that these job roles are directly related to the work which is being
performed by the workers and thereby it can be said that the leadership approach that the
corporations use is an important determinant of their overall organizational performance (Lin and
Shiqian 2018). More importantly, it had also been seen that the contemporary business leaders
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7LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
through the usage of adequate leadership styles like transformation leadership style, transactional
style, authentic leadership and others directly influence the performance of the workers and
thereby the overall performance of the corporations as well (Zeb, Ahmad and Saeed 2018).
2.2.3 Training and Development
As discussed by Hartnell et al. (2016), the performance of the workers is directly reliant
on the quality or the nature of training programs which are being offered to them by their
employers. Adding to this, Rahman et al. (2018) have found that these training programs are
important since they help the workers to acquire the skills or the knowledge which in turn help
them to perform a per the expectation or for that matter the needs of the corporations. More
importantly, the corporations in order to enhance the performance of their workers also need to
offer them advance training so that they would be able to know as well as use the best practices
or the emerging trends within the industry and thereby perform as per the industry standards.
2.2.4 Reward and Recognition
Jing and Avery (2016) are of the viewpoint that rewards and recognitions have a
profound impact on the morale of the workers and often propel them to perform in a better
manner. Adding to this, Koohang, Paliszkiewicz and Goluchowski (2017) have noted that the
workers have a deep-seated desire to get recognition as well as reward for the hard-work that
they perform. More importantly, when they see that their efforts or hard-work is being
appreciated by the corporation they tend to push themselves even harder or for that matter start to
perform their work in a much diligent manner. Therefore, reward and recognition is an important
factor which influences the overall organizational performance of a corporation.
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8LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
2.3 Concept of Leadership
According to Gordon (2017), leadership is the process of influencing the behavior of an
individual or for that matter the behavior of a group for the attainment or the achievement of the
goals or the objectives that had been outlined for them. Lin and Shiqian (2018) are of the
viewpoint that the framework of leadership becomes especially important from the perspective of
the business world since the profitability of the business corporations is greatly reliant on the
effectiveness of the leadership approach which is being used by them. In this connection, it needs
to be said that the contemporary business leaders unlike the earlier times are seen as stewards
who are required to perform both the job roles of the leaders and also the managers (Orabi 2016).
For instance, they are not only required to motivate, coach and mentor the workers but also take
the help of different measures which are intended to enhance their performance. They are
required to facilitate the creation of an adequate organizational culture wherein the workers
would be able to maximize their potential, set vision, mission, goals and objectives for the
workers for the enhancement of organizational performance as well (Imran, Ilyas and Aslam
2016). These job roles performed by the contemporary business leaders had made their place an
indispensible one within the modern-day business landscape.
2.4 Impact of Leadership on Organizational Performance
The leadership practices used by the business corporations are an important determinant
of their overall organizational performance on the score of the plethora of benefits that the
framework of leadership offers to them. The majority of the factors which influence the overall
organizational performance of a particular business corporation like training and development,
reward and recognition, organizational culture and others are directly related to the leadership
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9LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
practices which are being used by the same (Eva et al. 2018). Thus, it can be said that the
framework of leadership directly affects the organizational performance of the corporations.
3.0 Research Methodology
3.1 Research Philosophy
Positivism research philosophy, pragmatic research philosophy and interpretivism
research philosophy are the three kinds of research philosophies most commonly used by the
different researchers (Kumar 2019). The researcher will use the pragmatic research philosophy
within this research for its completion. Cuervo‐Cazurra et al. (2017) have suggested that a
particular topic can be analyzed through different perspectives or angles and the pragmatic
research philosophy offers precisely this particular opportunity to the researchers since through
the usage of this particular research philosophy they have the option to analyze a particular
research topic through different perspective. Thus, the researcher through the use of this
particular research philosophy would be able to analyze the impact of leadership on
organizational performance through different perspectives. However, the major risk associated
with the usage of this particular research philosophy is the fact that the researchers often fail to
adequately answer the research questions while using this research philosophy because of the
numerous perspectives through which they try to analyze the same (Walliman 2017).
3.2 Research Approach
Deductive research approach and inductive research approach are the research
approaches which are generally being used by the researchers (Fletcher 2017). The researcher for
evaluating the research topic will use deductive research approach. As discussed by Silverman
(2016), the deductive research approach affords the opportunity to the researchers to analyze the
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research topic that they have selected through the usage of diverse theoretical frameworks,
observations, opinions and others which in turn broadens the scope of the study. Thus, the
researcher is hoping that this particular approach the research will facilitate the usage of different
theoretical frameworks, observations, models and others for analyzing the impact of leadership
on organizational performance in the case of Aston Martin. However, at the same time it needs to
be said that the most important risk associated with the use of this particular research approach is
that the researchers while using too many theoretical models, frameworks, observations and
others often lose sight of the original research topic and thereby fail to analyze the same
effectively.
3.3 Research Design
Descriptive research design, exploratory research design and explanatory research design
are the three most important commonly used research designs by the researchers (Quinlan et al.
2019). The researcher for evaluating the research topic will use the descriptive research design.
Alvesson and Sköldberg (2017) have suggested that the most important advantage of the
descriptive research design is that it helps the researchers to correlate the findings obtained from
data analysis with the research objectives. Thus, the researcher through the usage of this
particular research design will get the option to do the same which in turn would significantly
enhance the quality of the study by increasing its coherency. However, the major risk associated
with the use of this particular research design is that it restricts the scope of the study by limiting
the discussion merely to the research objectives that the researchers have formulated and does
not allow them to discuss the issues beyond that.
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11LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
3.4 Data Collection Method
Primary data collection method and secondary data collection method are the data
collection methods normally used by the researchers (Bell, Bryman and Harley 2018). The
researcher for analyzing the research topic will use the primary data collection method. For
instance, the tool of survey will be used to collect primary data from 200 workers of Aston
Martin to understand the impact of leadership on organizational performance. However, the
major risk associated with the usage of this data collection method can be attributed to the fact
that the data collected through this method are not completely valid or reliable since the
respondents are often biased while giving the answers to the survey questions (Hair Jr., Page and
Brunsveld 2019).
3.5 Data Analysis Method
Quantitative data analysis method and qualitative data analysis method are the two major
data analysis methods used by the researchers depending on the nature of data that they have
collected (Sekaran and Bougie 2016). The quantitative data analysis method will be used since
the researcher intends to use the primary data collection method and this will facilitate the
analysis of the same. However, the important risk associated with this is that because of the non-
reliability of the data the results derived by the researcher might not be completely correct.
3.6 Ethical Considerations
The researcher will adhere to the academic standards of conducting research work and
thereby prior consent will be taken from the participants who will participate in the survey. In
addition to this, the identity of the participants will be kept secret and they will not be asked any
personal, confidential or private questions. More importantly, the information provided by them
will be protected as per the Data Protection Act and used only for the completion of this study.
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