Developing Better Leadership Skills Commerce Essay

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Leadership is the skill to motivate a group of people towards a common goal and unity. Leadership inculcates the competence of knowledge, skills and expertise in the area that one is providing leadership. In other words leadership is defined as an enabling a group to engage together in the process of developing, sharing and moving into vision, and then living it out. Without leadership skills no one can achieve a desire level of leadership and cannot attain the top most stage or chair.

There are various types of leadership styles. The skills and practices expressed by a leader can be influenced by his or hers attributes or traits, such as beliefs, values, ethics, and character. Knowledge and skills contribute directly to the process of leadership, while the other attributes give the leader certain characteristics that make him or her unique.

The block diagram below shows the kind of leadership styles:


The importance of developing better leadership skills cannot be overemphasized. The success of any organization, department, or group in which you hold a leadership role is largely based on your performance and that of your fellow leaders in your leadership roles. Learning good leadership skills will help you better demonstrate the good intentions that you have within you. Leadership needs an attitude and behaviors like adaptability, direction setting, set high performance standards, provides a frequent feedback, risk action oriented, remain calm and consistent under pressure, strong customer orientation etc.For the contemporary development one has to develop the different leadership skills and self confidence in him.

The block diagram shows the influence on leadership and the factors which affects it:

The traits theory expresses the relation that a leader exhibits with inherited traits from someone who has influences the behavioural aspects as a leader. Thus, making someone involve or gain leadership roles.The trait model of leadership is based on the characteristics of many leaders - both successful and unsuccessful - and is used to predict leadership effectiveness. The resulting lists of traits are then compared to those of potential leaders to assess their likelihood of success or failure.

Small private vs. large public sized business

In a small private business leadership concepts are not very comfortable because of the many reasons. It may be less crew members, less customers etc. As an example of a small private business, the decision making is not so hard and not even they have to follow some definite pattern because of the less crew members leaders need not to worry about the different techniques to manage them. The management does not need to search for a well qualified or perfect employ for this job. A manager will expect a high salary.

A public sized business has permission to offer its registered securities (stock, bonds, etc.) for sale to the general public, typically through a stock exchange, or occasionally a company whose stock is traded over the counter via market makers who use non-exchange quotation services like for example Quality bakers and Fonterra


The reasons as to why small scale business do not hire executive managers and leaders very often are summarized below:

Hiring process not executed with concentration as it does not gain attention for the running of the business.

Attitudes that the employees exhibit

There is no concentration lead to monitoring, feedback and report back of the business hiring and recruitment system for small scale business.

Not much focus is kept on meeting the vision and aim of the business in the pursuit of gaining profit from the business.

Leadership concepts in Small private business versus large sized public business.

Small Sized Private Business :

If someone open the small business then as a leader of the business ones must make decisions that affect your business every day, some critical and some not so important. Leader`s first responsibility is to lead the business by making some important decisions and share some personal characteristics . Leader will be faced with important decisions that may impact the future of his company. Next responsibility is to manage employers. Means in a small business leader first lead the business then make some important decisions and manage the employers. When the business has increased day by day then he takes a great care on the importing and exporting. Leader also take care about the business rules and regulation .If he does not make sure that the business is running out of rules and does not run constantly like a clock then it can out of competition in future.

Concepts apply in Small Private Business -

The concepts of leadership are applied to the small private business depend upon the conditions or just say need. In other words the concepts or style may be transactional, participative or transformational.

The SPB is mainly on the owner or leader`s responsibility. The owner of the shop is commonly a leader of this business. The whole business is managed by the owner or you just say by the leader. The Decisions are taken at one point and all risks borne by the owner. As the business is small so the verbal communication is used with no separate entity. The owner is independently managed the shop on his own. The workers are the family members or fewer hired workers. Owner Mostly owner financed and or limited borrowed funds with no access to the share market. There is the no source of the specialist service. The owner is unable to adopt modern technology. The size of the Investment is relatively smaller. As a few workers work in this kind of business so the labor has the close relationship with the owner. There is also a requirement of minimum legal formalities. The business is housed in small establishments.

Examples……..1) Photographer

2) Barbers

3) Bakery shops

Leaders………….1) Mel Mason

2) Hasan Bhai

3) Yang Gui

Large Sized Public Business :

The form of the leadership style in the Large sized public business is Democratic and Participated.

In the LSPB the large number of workers do jobs and they have right to give their own opinion. All the workers are well experienced and knowledgeable. They are allowed to give their own view points and have right if the leader is going to wrong track then they can present their own suggestion. So the agree and disagree will also be on the workers and the workers need no supervision. They do work on their own and without interference. The workers are very participative also.

Examples - 1) New World

2) Seeka Pack House

Leaders- 1) Century Yuasa

2) Manfred

An organization that has grown beyond the limit of medium sized business is called be a Large sized business. The Leaders has the ability to communicate a vision and direction in an inspirational way was identified as very important. Some of the positive attitudes by a leader changes into risk and the change including tolerates mistakes, creates/enjoys change, willing to take risks, not afraid of challenges, learn from mistakes. To get away from the risk it is important for a leader to make attentions on individuals and have ability to motivate the workers to work together as a team in every situation and also should cooperate the team members. A good leader gives rewards on some creation by the workers. Leader gives them right to give their own opinion means the organization should have a democratic style and the mutual understanding should be also necessary.

First, small firms retain smaller amounts of accounts receivable and inventory, as reflected by their higher accounts receivable and inventory turnovers. Second, small firms rely heavily on current liabilities as shown by the current liabilities total debt ratio. Thus, small firms typically maintained less liquidity. It can be concluded that in small private sized business the form of leadership in is of a Relation- oriented leadership. This is where the leader is totally focused on organizing, supporting and developing the people in a team. Leaders also bring into a Participative Style i.e. good teamwork and creative collaboration where as in Large Sized Public Business the form of leadership is Task- Oriented, where focus is only on task and can be Autocratic at times. Not much attention is paid to well- being of the team. It can be said that in both Private and Public business the entire organization can collapse if leader leaves for some reason and it will become really hard for both the organizations to function on its own as success is tied up with their leaders. In small sized private business leaders are positively admired and liked aspect, Creates awareness among people at work of being supervised and important. They Adds in or enhances the level of motivation. The skills are admired and remarkably noticed. In Large sized public business it is very important to convey the vision and expectations of goals. So leaders create a democratic feel of work, improved interpersonal skills. They Maintains good expectation towards business profits, Sets standards, Enhances decision making and control aspects included in the business.

Profit v/s non-profit business:

For profit and non-profit businesses are similar in many ways. Both are generally corporations in which assets are held and business transacted in the name of the corporation rather than the individuals involved. To survive and grow, both need to generate or bring in more revenue than they spend on operations. Both are involved in producing a good or service for society. And both are managed and run by the people who are employed by the corporation.

For Profit Organization :

A business or other organization whose primary goal is making money (a profit), as opposed to a nonprofit organization which focuses a goal such as helping the community and is concerned with money only as much as necessary to keep the organization operating. Most companies considered to be businesses are for profit organizations; this includes anything from retail stores to restaurants to insurance companies to real estate companies.

Leadership form, style and concept :

A for-profit organization exists primarily to generate a profit, that is, to take in more money than it spends. The owners can decide to keep all the profit themselves, or they can spend some or all of it on the business itself. Or, they may decide to share some of it with employees through the use of various types of compensation plans, e.g., employee profit sharing. In the profit organization there is no care about the workers welfare. The company`s main aim is to earn more and more. For-profit organizations face an inherent contradiction between pursuing a social purpose and remaining authentic. While the organization's identity is 'for-profit', some of the organization's actions are 'for-purpose '. Thus, the identity and action of 'for-profit organizations that are also for-purpose' are not congruent. Simply put, for-profit organizations that spend their intellectual and financial resources to pursue social benefits can be seen as being inauthentic.

Example: 1) East Pack Kiwi Fruit Pack house

2) Burking King

Leaders: 1) Dale Mcdonald

2) Nikhil Sharma

Non Profit Organization :

The purpose of serving a public or mutual benefit other than the pursuit or accumulation of profits for owners or investors. The non profit sector is a collection of entities that are organizations; private as opposed to governmental; non-profit distributing; self-governing; voluntary; and of public benefit. The non profit sector is often referred to as the third sector, independent sector, voluntary sector, philanthropic sector, social sector, tax-exempt sector, or the charitable sector.

Leadership Form, Style and concepts

The leader of a nonprofit organization has to be goal-oriented and persuasive in order to motive others in the organization to participate and contribute to the maximum. This organization faces short-and-long term staffing and funding shortages, multitasking and tough decisions on the future of their organizations. This description may sound like your standard CEO working for a large conglomerate but the truth is this is a profile of your average leader in the nonprofit sector.

Using organizational structure as a lens, nonprofit leaders rely less on a pyramidal power structure. Instead, they lead from within a star-like structure, a constellation of stakeholders all around them instead of above or below them. This structure recognizes that power relationships are constantly shifting and that partnerships get results, especially when navigating change efforts. First a leader interacts with his subordinates, peers, and seniors in the organization, and people outside the organization. The support of all these groups of people is also important to his success, so he does well to cultivate good relations with all of them. And to do this, he needs to learn and rely on the following leadership traits and characteristics to succeed:

1.        Initiative

2.       Tact

3.       Courage

4.       Integrity.

5.       Enthusiasm

6.       Good Judgment

7.       Dependability

A leader should have Decisiveness, Unselfishness, Knowledge, Loyalty and Endurance too.

Examples: 1) Salvation Army

2) malik helping society

Leaders: 1) Hohepa (Joe) Patea.

2) malik riaz

Many business leaders were admired for achieving results including:

Achieves/drives results, is successful, is respected, and has credibility.

Management /technical skills. A greater number of specific management or technical skills were identified including: decision making skills, control, develops alliances, specific technical skills, mediates, excellent organisational diagnostic skills, thinks clearly through issues.

Personal Characteristics: Personal characteristics included: is not afraid to use power, strength - doesn't bend to pressure, Self-confidence, determined, pleasant personality, dynamic, enthusiastic, belief in self, kind, helpful, driven, physically domineering, broad knowledge base, straightforward, cool under pressure, has balance, lives life to the full, energetic, friendly, opportunist.

Communication skills: Communication skills at all levels, public speaking, used fun and humour, good listener relationship between the leader and follower with the emphasis on listening, caring and respect. It also highlights the importance of values as well as expertise.

Leadership in relation to social responsibility:

Companies are increasingly adopting socially responsible business practices based on sustainable development to make sure efficiency, encourage improvement, and create top-line growth. The role of a leader in a for-profit organisation involves a more holistic, cerebral view of leadership whereas responsibility of the non-profit leader involves more of the tasks and activities of leadership.

The assumption of subjective literature is that if it works in one place it should work in another. This statement of a simple transference of effective organizational activities from one non-profit organization to another organization too often breeds frustration and organizational failure on the part of non-profit organization leadership. There are simply too many interrelated variables to make such a simplistic assumption. The intent of this investigation is to understand the role of a leader in the non-profit organizational setting, and the dynamic interrelationship of leader's influence upon the elements of organizational leadership, culture and socialization. The study is grounded in extant research in the fields of non-profit organization leadership which is not specific to community action agencies; yet, is the only literature available for this study, organizational culture and socialization.

A non-profit organization is, in a way, owned by the public. It belongs to no private person and no one person controls the organization. The assets of a non-profit are irrevocably dedicated to the charitable, educational, literary, scientific, or religious purposes of the organization. The cash, equipment, and other property of a non-profit cannot be given to anyone or used for anyone's private benefit without fair market compensation to the non-profit organization.

Social responsibility:

A leader plays whatever role in the society takes seriously its responsibilities for providing employment, eliminating discrimination, avoiding pollution and whatever else he/she plays a role. A leader is socially responsible to set example for the followers to understand the path that they need to undertake. Leader as a person, he may have many other responsibilities that he recognizes or assumes voluntarily-to his family, his conscience, his feelings of charity, his church, his clubs, his city, his country.


Leaders know what they value. They also recognize the importance of ethical behavior. The best leaders exhibit both their values and their ethics in their leadership style and actions. Your leadership ethics and values should be visible because you live them in your actions every single day.

A lack of trust is a problem in many workplaces. If leaders never identified their values in these workplaces, the mistrust is understandable. People don't know what they can expect. If a leader has identified and shared their values, living the values daily, visibly will create trust.

Ethics in any organisation is necessary or every organisation has its code of conducts. It depends on leaders how they follow these rules and implement them. Leaders should always perform their duties with integrity, honestly and loyalty. Below are the dimensions a leader is involved in with ethical issues consideration:

1. The ethics of a leader as a person, which includes things like self-knowledge,

Discipline, and intentions, and so forth.

2. The ethics of the leader/follower relationship (i.e., how they treat each other).

3. The ethics of the process of leadership

4. The ethics of what the leader does or does not do.


A person, group, or organization that has direct or indirect stake in an organization because it can affect or be affected by the organization's actions, objectives, and policies. Key stakeholders in a business organization include creditors, customers, directors, employees, government, unions, and the community from which the business draws its resources.

Leadership responsibility to stakeholders:

Stakeholder theory is presently the dominant framework for analyzing ethical issues within the field of business ethics. The theory goes beyond the conventional idea that stockholders are the main group to whom corporate managers owe responsibility by arguing that all groups having a stake in a firm - suppliers, customers, employees, the local community, and others - should be considered by managers in decision-making. The scope of the anthology covers the historical origins of stakeholder theory, its normative foundations, debates concerning its adequacy as an ethical theory, issues involving stakeholder identity and legitimacy, applications of stakeholder theory within organizational management, and extensions of stakeholder theory to specific corporate domains and industries.

If we talking about the social responsibility of a leader to the stakeholders the objective of being socially responsible business is achieved when its activities meet or go beyond the expectations of all its stakeholders. Being in leadership a leader must disclose all policies and issues rather than put their interest at first.

Leaders must protect stakeholder interests in a visible and accountable manner as part of responsible enterprise security governance. Proactive ethical leadership is possible only if there exists a deep understanding of the interests, priorities, and concerns of the stakeholders. In a leadership a good leader need to show returns to its shareholders.

Impact of leadership on society:

The leadership has a great impact on society. Without leadership the main head of that society will not be able to motivate others to live a constant life. Whether in a family without leader there will not develops a peaceful environment. Small scale business has nothing much to be involved with leadership due to certain constraints. There is a need to understand the exploitation it gives to the market according to the need of the changing economic conditions. Leadership is actually involved in every aspect of human race and needs to be participating in wider range of its expected outcomes. It is very clear that a good leadership is very necessary to make a business successful whether it's a small or large public sized business rather than its use is bit different according to the need of all the organizations. It's not only for the outside of an organization but also covers the internal part of an organization like duties to stakeholders, etc.

Positive Impact:

1. The people who are related to Kiwi fruit company or the whole people of the town in Opotiki have come to know about the impact of Psa virus in Kiwi fruit which can destroy the kiwi fruit in New Zealand. So Only because of Dale Mcdonald`s leadership people have become very careful about an environment and taking precautions to overcome the cause and also giving knowledge to their children about this cause.

2. By doing many things about the own culture malik riaz has built a mosque so that the people who are aware of this religion come to know about this and also the people who come to overseas get linked with their own culture.

Examples of leaders : 1) Dale Mcdonald

2) malik riaz

Negative Impact: If the leadership style is not good then it has put a bad impact on the society.

One of the leader name Jimmy implied the employees but do not give them the wages at time. So people start thinking that the contractors of the kiwi fruits are very mean and selfish. As that leader is from Pakistan so the it comes in the people`s mind that an Pakistani are very mean people. These kinds of things occur just because of bad leadership style.

Raja parvaiz is one of the leader of the national college and also the principle of the College. His leadership style is very hard and directive. The students over there are afraid of being get admit in his college. Which creates a fear in the rest of the students and society as he behaves like a cruel man which may also lead to the downfall of the organisation.

Examples of leaders: 1) Jimmy

2) raja parvaiz