The Leadership In A Profiting Organization Commerce Essay


Now a silent trend is going on that few leaders migrate from profit organization to non-profit organization and vice versa. The purpose of the research to know in-depth what is/are the reason(s) or challenges for a leader when they change different organization. Is there is any silent factors which influence to change the job such as age, pace and demand of the job etc? Does a leader changes his/her job from profit to non-profit organization just because to take rest or not efficient with his/her leadership to drive the company? If I want to pursue my carrier with a profit organization what mindset I need to change or what are the skills I have to develop which I have not exposed in a non-profit organization. Does the leadership theory fit with the leaders working in non-profit organization or any specific kind of leadership may exist in a particular sector? All these questions are in my mind at this moment and I would eager to know the outcome of the research. Hope you also exited to know the outcome of the research.


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Leadership is a complex process and a real leader that keeps the world falling apart and improves the human condition and the leader must craft a vision, motive people through persuasive communication and that makes some leaders/ organizations successful and other unsuccessful (Williams, 2005). This paper represents an initial attempts to conclude that leadership does changes with organization or not and need to do more research on the leadership and leadership in organization.


Before going to discuss and critically evaluating the leadership theory here is a brief overview of the leadership theory. Research has examined leadership skills in different prospective time to time and reveals an evolving series of 'schools of thought' from "Great Man" and "Trait" theories to "Transformational" leadership. In early theories tend to focus on the behaviors and characteristics of a successful leaders, later theories shifted to the role of followers and the contextual nature of leadership.

Great Man Theories

Based on the belief that leaders are exceptional people, born with innate qualities, destined to lead. The use of the term 'man' was intentional since until the latter part of the twentieth century leadership was thought of as a concept, which is primarily male, military and Western. This led to the next school of Trait Theories.

Trait Theories

The lists of traits or qualities associated with leadership exist in abundance and continue to be produced. They draw on virtually all the adjectives in the dictionary, which describe some positive or virtuous human attribute, from ambition to zest for life.

Behaviorist Theories

These concentrate on what leaders actually do rather than on their qualities. Different patterns of behavior are observed and categorized as 'styles of leadership'. This area has probably attracted most attention from practicing managers

Situational Leadership

This approach sees leadership as specific to the situation in which it is being exercised. For example, whilst some situations may require an autocratic style, others may need a more participative approach. It also proposes that there may be differences in required leadership styles at different levels in the same organization.

Contingency Theory

This is a refinement of the situational viewpoint and focuses on identifying the situational variables which best predict the most appropriate or effective leadership style to fit the particular circumstances

Transactional Theory

This approach emphasizes the importance of the relationship between leader and followers, focusing on the mutual benefits derived from a form of 'contract' through which the leader delivers such things as rewards or recognition in return for the commitment or loyalty of the followers

Transformational Theory

The central concept here is change and the role of leadership in envisioning and implementing the transformation of organizational performance


Each of these theories takes a rather individualistic perspective of the leader, although a school of thought gaining increasing recognition is that of "dispersed" leadership. This approach, with its foundations in sociology, psychology and politics rather than management science, views leadership as a process that is diffuse throughout an organization rather than lying solely with the formally designated 'leader'. The emphasis thus shifts from developing 'leaders' to developing 'leaderful' organizations with a collective responsibility for leadership.

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For my organization that is a not profit organization transactional theory is appropriately applied. The mission of my organization is to connect and serve the community. Mostly in a non-profit organization, salary scale is lower than a profit organization. In my organization employees are mostly female who is second earning member of the family so they would like chosen an organization where the work pressure is less. A group of employees is there who would like to do some voluntary work and as well as earn some money. Third there is a group of employees who just joined to the non-profit organization because to gain experiences and fist stepping-stone. Finally a group of employees who just passionate to do voluntary work and would like to attach with an organization.

This is very common statement to hear from a non-profit organization while employments an employee that don't compare your salary with a profit organization because we are not profit organization. But the fact is the workload and work pressure is more than a profit organization. Then why salary is less in non-profit organization. It is also true that all employees are not working for salary in our organization few of them want rewards or recognition. Few of the employees want flexible work environment show that they will balance their family life as well as professional life.

What happen when a CEO joins a non-profit origination and his whole experiences from a profit organization? Under his leadership definitely he would like to change the operational procedure of the organization as same as profit organization and boost the work output. Now we can imagine the work pressure of the organization because change of the leadership working same as from his experience or habit.

The important question is the CEO is going to increase the salary of the employee, answer is no because it is a part of leadership and his credit that without spending extra revenue the work output is more. Now we can understand the impact of the leadership, which just focus on output, and growth of the organization. So such type of the leadership will fail to run a non-profit organization

From my experiences and observation, I can say that leadership in a non-profit organization is different from a profit organization. So we can observe here that an organization influence the leadership. If the leader wants to migrate from one profit to non-profit organization and vice-versa, the leadership should adapt according to the situation or need to be creative so that the reflection and impact of the previous experience will be minimal.

I would like to give an excellent example of leadership, that how a real leadership can changes the society where situation in the adverse. Mahatma Gandhi, a freedom fighter of India and we all know his leadership and the impact during the freedom moment in India. During freedom movement in India all the freedom fighters are fighting with arms against the British in all level at their best but Mahatma Gandhi choose a different way of fight against the British without any arms. At the beginning nobody, believe that a simple man will be so powerful just because of his leadership. It was not an easy path for him at the beginning because the condition is very adverse everybody believes that freedom can only able to get with violence against the British Government.

He started march alone around the India and people slowly started joining him and people develop believe on him that freedom can get though the non-violence. Hence, the violence slow down and at the end British government has to declare freedom

Manager and management vs Leader and leadership

Manager and management: "Burns (1998) describe managers are transactors. Managers are more structured, orderly, analytical, controlled, and rule-oriented". "Management deals with carryin out the organization's goals and maintains equilibrium".

Leader and leadership: "The leader end of the continuum connotes a more experimental, visionary, unstructured, flexible, and impassioned side". "Leadership deals with change, inspiration, motivation, and influence".

"Manager and leader are not the same. They think differently internally, and behave differently externally". "Managers are people who do things right and leaders are people who do right thing" (Bennis & Nenus, 1985)

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Leadership theory doesn't explain about the manager rather than different types of leadership style and features. All leaders can be a manger but not all managers can be a leader. It explains that all leaders have a quality to become a manager but not all managers have a quality to become a leader. A manger have sub ordinate, which they have to complete the project or task as assigned. Manager not needs to take any risk they just obey the instructions given by him, monitor, and overview the subordinates' performance. Their job is very structured and stable and within a limited boundaries.

"Leadership is an art (Bennis, 1989), of influencing, directing, guiding, and controlling others to obtain their willing obedience, confidence, respect and loyal cooperation in accomplishment of an objective".

Leaders don't have subordinates like managers and their job are not very structured. Leaders have followers, which they inspired from their leadership skill. Leaders are visionary and they are risk takers they don't limit their self within the office hours.

My organization has multicultural and multinational employees. We know that it is very difficult for an organization to manage multicultural and multinational employees. To maintain harmony, integration among the staff and inside the organization is very important task. It will be help to achieve better output. Without a good leadership, it is not possible to understand the different employees and their way of work. If my CEO only thinks like a manager and focus day-to-day operational procedure to run the organization then it will be fetal for the organization. Then there will be no harmony within the staff and once there is no integration among the staff, which direct effect the output and reflect on the performance of the staff. Even though my organization is a non-profit organization but leadership required working around the multicultural and multinational team to work towards the organization's aim and mission.

We know that the difficulties have to face by United State's IT Company when they want to outsource from India. Initially both parties are difficulties to understand their culture and way of work. Therefore, they have difficulties to understand each other and come to a conclusion. This is also true that the team who is negotiating have lack of leadership skill they just thinking as a manager. They are thinking around the task was given they are not thinking beyond that and the negotiation failure few times. The US team backs to their boardroom and come to a discussion that needs a mediator who has leadership skill and knowledge of both countries culture. Finally, it works to create better environment in the boardroom for discussion and negotiation. Now India is the valley of IT outsourcing industry.

Today's global world there is a highly demands for real or effective leadership not only in multinational company also for negotiation or resolve conflict between two countries and peace envoy to talk between different parties. We understand the importance and effectiveness of real leadership.

My Preferred Leadership theory

I personally prefer transactional theory where I have a better understanding with my staff. I may able to create stress-free working environment for them so that my employees perform better and have an emotional attachment with the organization. It will help me to reach closer to the employees and know closely their strength and weakness, which may help me to plan their training map and carrier plan within the organization. I have to be careful the drawback of this theory that few employee might be advantage of friendly atmosphere and attitude. This is just my preferred way of leadership but become a successful leader definitely I have to adjust and adopt according to the situation according to best of my knowledge and experience.

Emotional intelligence and impact on my organization

This is very important and essential for a leadership in a non-profit organization where employees work on low wedges or a segment of employees just working for self-satisfaction working with needy community people. So salary is not a satisfaction factor for all employees in my organization few want reward, reorganization and comfortable environment. At first, the leader has to understand himself and his emotions, his own goal, and his intention and then let know about others EQ so have a better understanding of others and their feelings.

The five 'domains' of EQ identifies by the Goleman are:

Knowing own emotions

Managing own emotions

Motivating own self

Recognizing and better understanding of other people's emotions

Managing relationships with other people, i.e., managing the emotions of others


When a leader join an organization that is working with needy people in the community, need to ask himself that why he want to work with the organization. It will be easy to explain other that why he is associate with the organization, and what he wants from the others. Working with a non-profit organization needs a passion and commitment to serve needy people.

A leader should have better understanding and awareness of the employees' emotions, where the employees are also working with people with emotionally effected. If the leader have better understanding of the employees emotions, which will help to create better working environment in the organization and have trust, which will help to improve the professional relationship and have better understanding. It not just applicable for non-profit organization there is lot profit organization who is taken care of their employees. Even though these companies paying less to the employees but still are happy to work for the company because the company's leadership have better understanding of EQ.

Complexity and Leadership

"In an extensive review of the literature on executive leadership, Zaccaro (2001) identifies four conceptual models that focus on the requisite qualities of executive leaders. The four models are conceptual complexity models, behavioral complexity models, strategic decision-making models, and visionary or inspirational models" (Lawrence, 2003)

In the new view of complexity leadership, leading is a process that can occur in the interactions between any two individuals. In contrast to the old view of a single leader who takes independent actions aimed at changing individual- and organizational behavior, the new complexity leadership mainly focuses on the dynamics of leadership as it emerges over time in all levels and areas of an organizational system. Each interchange and every connection provide opportunities for leading, as peers individually and collectively learn and grow and engage in the continuous process of organizing (Weick, Sutcliffe & Obstfeld, 2005).

"Complexity leadership theory also reflects a new approach to understanding dynamic organizational capabilities, including innovation, strategic alliance making, and merger and acquisition capabilities" (Lichtenstein et al. 2006).

Seeing leadership as a relational phenomenon that is distributed across individuals goes beyond current conceptions of shared leadership (Pearce & Conger, 2003), collective leadership (Weick & Roberts, 1993), distributed leadership (Gronn, 2002), or relational leadership (Drath, 2001). Complexity leadership focuses on these processes of change in individuals, groups, ventures, organizations and institutions occurring in daily interactions, interventions that occur in weekly or monthly timescales and macro-social events that accrue over months and years.