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The way the management leads a company can play an important role as to how the company will perform. Because of the different styles of leadership, it can affect the organisational performance of a company in many different ways depending on how effective the leader is and the types of strategies that are put forward by the management team in a business. As to what leadership is and how it can affect a company's performance will be discussed in this paper along with some theories and examples to better describe management.
According to McShane, Olekalns & Travaglione (2010) leadership is about the influencing, motivating as well as the enabling of others to contribute towards the success of the organisation that the employees are working for. But because any person cannot handle the responsibility solely they have to share the leadership with a number of other people which form part the management team of a business. LaFrance and Placide (2009) have stated that Kotler believes that leadership is about developing and communicating a course of action which prepares the business for change. This view on shared leadership which is leadership being broadly distributed between a number of people instead of being assigned to one person so that they can all lead each other (McShane, Olekalns & Travaglione, 2010). This is a good point as people have different ideas and strategies as to how to lead their company to success, thus building upon each other's which makes it more effective and easier to manage the company.
When it comes to leadership there are many perspectives presented in various texts regarding this topic where there is a competency perspective, behavioural perspective, the contingency perspective, transformational perspective, the implicit leadership perspective as well as the cross cultural and gender issue in leadership perspective. Each of these different types of perspectives when it comes to leadership will affect the way in which a company is managed through these different styles of leading a business.
One of these styles would be the competency perspective of leadership where it is about the interest in the different personal characteristics that people have. This distinguishes people that have the skills and characteristics that can make them a potential great leader to lead a company. The characteristics under this particular theory in regards to effective leaders include the personality of a person, self-concept, drive, knowledge of the company, leadership motivation, integrity, practical intelligence as well as emotional intelligence (McShane, Olekalns & Travaglione, 2010).
As for the behavioural perspective of leadership it is about leading a company based on the leader's behaviour such as showing that they have a general concern for their workers by making sure that they are looking at and taking care of their needs as well as listening to all of their concerns. Given this style of leadership, employees should tend to like working for the company as their leader actually displays concern to them in which should increase work productivity. This can be seen through Elton Mayo's study about the relationship between productivity and human relations. As articulated by Rieger (1995), one of Elton's principles was that managers should be focusing on their employees because they are the key to a company's survival. This is true because although the management team in an enterprise are the ones that lead a company, it is their employees who do the work that has been set out by the leaders in which it really depends on how the employees do their work.
One of the other perspectives on leadership is the contingency style where the style of leadership from the management depends entirely on the current situation that a company is facing. The leader of the company must be able to be flexible and is able to easily adapt their style to the current given situation. An example can be Singapore Airlines where during this time of an economic downturn there is a considerably less amount of people travelling on both domestic and international flights, so because of this they try to market their company more to increase ticket sales. The marketing team would be the leader in this situation where it is their goal to advertise Singapore Airlines to increase the ticket sales so they can get greater returns during this difficult time. One of the strategies of leading Singapore Airlines for better sales was to have a promotion back in 2008 and 2009 which they called the Singapore Stopover Holiday 2008-2009 Promo in which customers who purchased tickets during that period were able to avail of numerous offers such as free entry tickets to six of the most popular tourist attractions, free transfers to and from the hotel and airport as well as up to 50% discount off menus at the restaurants in hotels. But the best of all is also having a discount on shopping and a 15% discount on the Singapore Airlines tickets (Singapore Airlines, 2008). With this, Singapore Airlines was able to see an increase in the ticket sales of passengers travelling with them since this promo included many offers that would be beneficial to anyone going on a holiday which affects the organisation in a positive way due to the leadership displayed by Singapore Airlines.
The performance of an organisation such as for a law enforcement company will need good sheriffs and chiefs to lead the rest of the organisation to achieving their goals of solving a case, but this has to be done by making sure that they have a good relationship with their local government as well as the criminal and political justice systems which can all assist in achieving their goals (LaFrance and Placide, 2009). The leadership skills of being able to plan out all the steps carefully to be able to make sure that their case is headed the right way to solve the case given to them successfully is important so that it will improve the organisational performance. If the leaders in charge of the case did not have the proper problem solving skills and is also poor at analysing data then you can almost be sure that the team would fail at solving the mystery ending in an unsolved case since the leader was ineffective thus the rest of the employees would also perform poorly.
Having an executive on the other hand who makes poor decisions such as giving an employee another chance even though they have been caught stealing a number of small office equipment on the basis of believing that everyone does it due to the false consensus effect and that the employee performs well (Hayashi, 2009). This form of leadership seems to be very poor as the leader of the company does not follow the corporate policies regarding theft in the office, and because of this you can tell that this leader will not make great decisions that will affect the company positively but instead in a negative way since they have already broken company policies.
Therefore in conclusion, it can be seen that leadership can directly affect the way a company performs in which leadership is about the way a person or team or people can influence and motivate the employees in a company to perform to the best of their abilities. As we can see through the examples given above, the different perspectives and theories on leadership can also account as to what kind of effect it will have on the organisations performance given their own style, knowledge and skills as well as the type of leadership that the manager believes in will benefit the company they are working for. Having the right characteristics and skills to lead and direct a company to success is important to make sure the company achieves its goals.
- Backman, C. W. (1976). Elton Mayo in the Classroom Review of Education, Pedagogy & Cultural Studies, 27(2).
- Hayashi, A. M. (2009). How Executives Can Make Bad Decisions. MIT Sloan Management Review, 50(4).
- LaFrance, C., & Placide, M. (2009). Sheriffs' and police chiefs' leadership and management decisions in the local law enforcement budgetary process: an exploration. International Journal of Police Science and Management 12(2).
- McShane, S., Olekalns, M., & Travaglione, T. (2010). Organisational Behaviour on the Pacific Rim. North Ryde: McGraw-Hill Australia.
- Rieger, B. (1995). Lessons in Productivity and People. American Society for Training and Development Inc.
- Singapore Airlines (2008). Singapore Stopover Holiday Promo. Retrieved May 28, 2008, from http://www.singaporeair.com/saa/en_UK/content/promo/ssh/hotels/AU/index.jsp