The Importance Of Leadership On Organizational Performance

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Leadership is definitely not a ‘one-size-fits-all’ sort of word, it is one of those words that is ceaselessly debated and typically elicits a spectrum of individual opinions, from describing personality attributes, ‘position’ characteristics, or even behaviors. But the most appropriately way to define Leadership is the ability to adapt the setting so everyone feels empowered to contribute creatively to solving the problems. In simple words "A leader is best when people barely know that he exists, not so good when people obey and acclaim him, worst when they despise him. 'Fail to honor people' they fail to honor you.” But of a good leader, who talks little, when his work is done, his aim fulfilled, they will all say, 'We did this ourselves.”…show more content…
Leadership can be advantageous to businesses if leaders are able to delegate tasks efficiently and increase worker productivity. Good managers are able to determine the strengths and weaknesses of different employees and delegate work accordingly. Efficient division of labor can result in higher work output, which ultimately results in higher sales and higher profit. On the other hand, ineffective leadership can reduce productivity. For example, if a manager decides to keep easy tasks to himself and delegates difficult tasks to employees, it could result in suboptimal productivity. leadership can also improve employee morale and make workers more loyal to the company. Loyal employees trust their managers and may be willing to work harder and stay with the company when times are tough. Recruiting and training new workers can be expensive, so fostering high morale through good leadership can have an impact on the bottom line. But leadership can also have disadvantages. One reason that leadership can be a disadvantage in business is that leadership itself is not a productive activity. While spending time leading and instructing workers is essential to make sure that they perform their duties well, managers do not actually produce goods or services while acting as leaders. An entrepreneur who hires a few employees might find that the time he spends performing leadership tasks cuts into the time he has to spend communicating with clients and making sales. Some owners hire manages to lead employees on their behalf, but hiring administrators can be expensive. Another potential drawback of leadership in business is that leaders and workers do not always see eye to eye. In some cases, workers may feel that they cannot relate to their leaders, and an "us versus them" mentality can develop.

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