Premium Essay

Roles of Leadership and How It Can Impact Organizational Performance

In:

Submitted By kclay
Words 1772
Pages 8
Alan Mulally, CEO, Ford Motor Company Katherine Clay Professor Terhune Leadership and Organizational Behavior- 520
December 18, 2011

Discuss the role of leadership and how it can impact organizational performance.

Leadership roles in organizations are very important. Poor leadership can cause organizations to fail. All leaders use power and engage in political behaviors to influence others. True leaders do so effectively and ethically. Others in managerial roles, but who do not qualify as effective leaders, use power and political behavior in ways that are ineffective and counterproductive. (Hellriegel, & Slocum, 2011, p.290). Leadership roles can be broken down into five sources of power that leaders use to influence their followers. When leaders use these sources they are trying to reach one or more of the followers needs. To be an effective leader there must be a willing follower in place or the leadership method will fail. Legitimate power is an important concept of the leadership role in that this type of power has to do with influencing ones behavior. Reward power provides things to the followers in order to get them to comply with or influence behavior. Coercive power deals with influencing the follower through punishment. Referent power is when a leader can influence the follower to like him /her and the follower wants to do what they can to please the leader. Expert power deals with influencing other behaviors through talents, specialized knowledge, or competencies. An effective manager who is also a leader –whether a first time manager or a top- level executive-uses a variety of sources of power. For successful leaders and organizations, the emphasis is on reward, referent, and expert power, with less reliance on coercive and

Similar Documents

Free Essay

Ford Motor Company

...BUS 520: Leadership and Organizational Behavior Strayer University Wednesday November 16, 2011 Alan Mulally, CEO, Ford Motor Company Allan Roger Mulally is the present Chief Executive Officer of Ford Motor Company. Ford has been struggling to survive since the 2000s but has regained tremendous profitability under the leadership of Mulally. In this paper, we shall discuss the role of leadership and how it can impact organizational performance, Mulally’s leadership style at Ford and how goal setting has helped Ford improve performance. Ws shall also assess Mullaly on each element in communication openness and the effectiveness of his leadership style and conclude by making recommendations on whether Mullaly should continue with his leadership style or use a different style. The Role of Leadership and How it Can Impact Organizational Performance Leadership is very vital to any organization or business; it guides people towards productive results and aims at achieving the goals of an organization. An effective leader is able to motivate and influence followers when there is a proper alignment between the leader and subordinate. Leadership has been recognized as a major factor in project success and charismatic transformational leadership has a substantially positive effect on organizational performance. (Huang, Hsu & Chiau, 2011) Leaders induce change in organizations through their actions and individual strength which impacts the organization’s performance. Leaders...

Words: 1708 - Pages: 7

Premium Essay

Leadership, Organizational Culture and Knowledge Management

...Examining the effect of leadership behavior and organizational culture on knowledge management Introduction: From 1993 knowledge was an important economic resources and to gain the competitive advantage organization should have emphasis on knowledge. Now a day its knowledge based economy in which knowledge based organizations have focus on the process of knowledge management which is knowledge creation, knowledge acquiring/learning, knowledge sharing and knowledge transferring. Organizational knowledge has two types tacit and explicit knowledge. Tacit knowledge basically subjective and experiential based which cannot be express in words while explicit knowledge based on objective and rational knowledge which can be express in words. According to Maggie Haines, NHS Acting Director of KM “Knowledge management is a process that emphasizes generating, capturing and sharing information know how and integrating these into business practices and decision making for greater organizational benefit.” Leaders play important and significant role in developing and maintenance the culture in an organization. An effective leader should be have understanding of organizational culture so that they can implement knowledge management effectively (S.K. Sharma & A. Sharma, 2010). Organizational culture means believe and value structure in an organization. We have taken two approaches of leadership; transformational and transactional leadership behavior. Problem statement: In developing...

Words: 2324 - Pages: 10

Premium Essay

Organisational Commitment

...How might organisational commitment impact on the behavior of employees in the work place? Would the impact be the same for all employees? Organizational commitment is the employee's psychological attachment to the organization. It predicts work variables such as turnover, organizational citizenship behavior, and job performance. Some of the factors such as role stress, empowerment, job insecurity and employability, and distribution of leadership have been shown to be connected to a worker's sense of organizational commitment. Organizational commitment can be contrasted with other work-related attitudes, such as job satisfaction, defined as an employee's feelings about their job, and organizational identification, defined as the degree to which an employee experiences a 'sense of oneness' with their organization. Organizational scientists have also developed many nuanced definitions of organizational commitment, and numerous scales to measure them. Exemplary of this work is Meyer and Allen's model of commitment, which was developed to integrate numerous definitions of commitment that had been proliferated in the literature. Meyer and Allen's model has also been critiqued because the model is not consistent with empirical findings. There has also been debate surrounding what Meyers and Allen's model was trying to achieve. Role Stress Dysfunctions in role performance have been associated with a large number of consequences, almost always negative, which affect the well being...

Words: 685 - Pages: 3

Premium Essay

Shaping Organizational Culture

...The Role of Leadership in Shaping Organizational Culture Laurita M Jones, MBA, MSA Walden University The Role of Leadership in Shaping Organizational Culture Leaders have a profound impact on their organization and how well their teams perform. Thus, organizational leadership plays an influential role in shaping culture and culture in return forms administration. As a leadership perception, corporate culture has been acknowledged as one of the various elements that leaders can utilize to enhance a dynamic business. The process of establishing the cultural foundation of a company begins with the appointed leadership of organizations. They do so by enforcing their assumptions and expectations of organizational culture onto their followers. High-level superiors are the major sources for communicating norms and core values in organizations. Therefore, it is imperative that leaders convey the organization leadership and cultural principles to their followers for utilizing their leadership powers to support and preserve an organizational culture that is ethical and healthy. With the attentiveness to culture in today’s business entities, and its resilient influence on the behavior of subordinates, leaders in company’s can produce a culture that supports high moral and ethical behavior. The subsequent analysis of leadership and organizational culture will attempt to discuss several mechanisms of leadership, and the role leadership plays in shaping the culture of an organization...

Words: 1911 - Pages: 8

Premium Essay

Ford

...Abstract Leadership is an important function in small business. Leadership and management represent two completely different business concepts. Leadership is commonly defined as establishing a clear vision, communicating the vision with others and resolving the conflicts between various individuals who are responsible for completing the company’s vision. Management is the organization and coordination of various economic resources in a business. Leadership can have a significant impact on an organization’s performance. 1. Discuss the role of leadership and how it can impact organizational performance. • Setting the Tone Small business owners usually set the leadership tone for their organization. Owners accomplish this by developing a mission or set of values by which they operate their company. This creates a minimum level of acceptance for employee behavior. Business owners often create company policies or guidelines from the company's mission or values. Policies and guidelines also give business owners the ability to remove under-performing employees from the company. • Types Three types of leadership are common in business: authoritarian, democratic and laissez-faire. Each type of leadership impacts organizational performance differently. Authoritarian leadership is commanding and sets clear expectations for employees in the organizational. Democratic leadership encourages feedback and input from managers or employees regarding organizational performance. Laissez-faire...

Words: 1168 - Pages: 5

Premium Essay

Ethics

...[pic] |Leadership and Organizational Behavior – BUS 520 | |Student Course Guide | |Prerequisite: None | |Quarter |Fall 2010 | |Meeting Days/Time |Wednesday 6pm-10pm | |Instructor |Karmetria Burton | |Instructor Phone |678 362 0842 | |Instructor E-mail |Karmetria.burton@strayer.edu | |Instructor Office Hours/Location |5-6 pm Wednesdays or by appointment | |Academic Office Phone Number | | |INSTRUCTIONAL MATERIAL - Required ...

Words: 7940 - Pages: 32

Premium Essay

Alan Mulally, Ceo, Ford Motor Company

...executive officer. This paper explores the role of leadership and how it impacts the organizational performance at Ford Motor Company. This paper discusses Alan Mulally’s leadership style and how goal setting helped Ford improve its performance. In addition, an assessment of Mulally’s leadership will analyzed on each element in communication openness including message transmission, trust, agendas, and goals. In summary, an evaluation of the effectiveness of Mulally’s leadership style will be discussed along with a recommendation on whether he should continue with his style, or pursue a different style. (Hellriegel, D., & Slocum, J W, Jr. 2011) The Role of Leadership and its Impact on Organizational Performance Leadership is an important function in any business and should establish a clear vision while communicating the vision to others. Leadership can have a significant impact on an organization’s performance. The role of leadership is the act of motivating people toward reaching a common goal. There are three types of leadership which commonly exists in business: authoritarian, democratic and laissez-faire. Each type of leadership impacts organizational performance differently. (Cherry, K. 2011) According to Cherry (2011), authoritarian leadership is commanding while setting clear expectations for employees, democratic leadership encourages feedback and input from supervisors or employees regarding organizational performance....

Words: 1164 - Pages: 5

Premium Essay

Organizational Behavior

...Table of Contents 1. Understand the relationship between organizational structure and culture: 2 1.1 Compare and contrast different organizational structure and cultures: 2 1.2 Explain how the relationship between an organization’s structure and culture can impact on the performance of the business: 4 1.3 Discuss the factors which influence individual behavior at work: 4 2. Understand different approaches to management and leadership: 5 2.1 Compare the effectiveness of different leadership styles in different organizations: 5 2.2 Explain how organizational theory underpins the practice of management: 5 2.3 Evaluate the different approaches to management used by different organizations: 6 3. Understand ways of using motivational theories in organizations 7 3.1 Discuss the impact that different leadership styles may have on motivation in organizations in period of change: 7 3.2 Compare the application of different motivational theories within the workplace: 8 3.3 Evaluate the usefulness of a motivation theory for managers: 9 4. Understand mechanism for developing effective teamwork in organizations 10 4.1 Explain the nature of groups and group behavior within organizations: 10 4.2 Discuss factors that may promote or inhibit the development of effective teamwork in organizations: 10 4.3 evaluate the impact of technology on team functioning within a given organization: 11 References: 12 Introduction: Organization is the combination of people for...

Words: 3641 - Pages: 15

Premium Essay

Assignment # 3

...Alan Mulally, CEO, Ford Motor Company Dr. Lu Leadership and Organizational behavior- BUS520 November 7, 2011 Alan Mulally, CEO, Ford Motor Company Discuss the role of leadership and how it can impact organizational performance In order for any company to succeed, there needs to be an effective leader to lead the organization in the right direction. The leader must be someone who not only knows about the company and where it needs to go but also how to take its resources (its employees, its equipment) and put it together to come up with a winning formula. The role of leadership is very important and the goals that a company wants to meet will not be attainable without an effective leader. A leader needs to be able to motivate and influence its employees. This is especially true in today’s down economy and highly competitive environment. The organization must look upon its employees to assess the playing field, formulate strategies, and unite organizational managers to work towards the common goals of staying in business, making a profit, and continuously improve market share. In essence, the primary role of a leader in an organization is to draw the road map for the organization to execute – often, this may involve some changes to the way it ran its business in the past. Therefore, the leader is the critical actor in drama of organization change to achieve the goals (Schneider, 1994). To initiate change, an effective leader, manager, director will need...

Words: 2888 - Pages: 12

Premium Essay

Organisations and Behaviour

...| Organizations and Behavior | A Theoretical Perspective | Muhammad Ariful Islam 01-Aug-12 | Contents Introduction 3 1. Understanding of Different Approaches to Management and Leadership 3 1.1 Comparison of Effectiveness of different leadership styles in different organizations 3 1.1.1 Autocratic Leadership Style 3 1.1.2 Democratic or Participative Leadership Style 4 1.1.3 Free Rein Leadership Style 4 Table: 1 5 1. 2 The Best Suited Leadership Style in this Scenario 5 1. 3. How Organisational Theory Supports the Practice of Management 5 1.3.1 Classical Theory 5 1.3.2 Neoclassical Theory 6 1.3.3 Contemporary Theory 6 1.4. An Evaluation of Different Approaches to Management Used by Different Organizations 6 1.5. Organisations that Adopt Different Approaches of Management 8 2. Understanding of the Ways of Using Motivational Theories in Organisations 8 2.1 The Impact of Different Leadership Style on Motivation in the Periods of Organizational Change 8 2.2 An Effective Leadership Style Can Help to Achieve Organisational Objectives 8 2.3 Comparison of the Application of Different Motivational Theories within the Workplace 9 2.4 ‘Motivation can Increase Employee’s Performance’- A Justification with Argument 9 2.5 The Usefulness of a Motivation Theory for Managers 9 3. Understanding of the Mechanisms for Developing Effective Teamwork in Organisations 10 3.1 The Nature of Groups and Group Behaviour Within Organisations 10 ...

Words: 3727 - Pages: 15

Premium Essay

Perception and Its Impact on Communication, Power and Politics in Organizations

...KULLIYYAH OF ENGINEERING ENGINEERING MANAGEMENT TOPIC 2: Perception and its impact on communication, power and politics in organizations Introduction Organizations establishment function to fulfill needs of the people. In today’s competitive and yet challenging world, the organizations have to be growth-oriented. Organizations are composed of number of individuals working independently or in teams, and number of such teams makes a department and number of such departments makes an organization. It is a formal structure and all departments have to function in a coordinated manner to achieve the organizational objective [1]. The organization's base rests on management's philosophy, values, vision and goals. This in turn drives the organizational culture which is composed of the formal organization, informal organization, and the social environment. The culture determines the type of leadership, communication, and group dynamics within the organization. The workers perceive this as the quality of work life which directs their degree of motivation. The final outcomes are performance, individual satisfaction, and personal growth and development. All these elements combine to build the model or framework that the organization operates from. Perceived Behavioral Control is the individual’s belief concerning how easy or difficult performing the behavior will be. Pertaining to that matter, perception plays a key part in the  organization behavior. Thus, factors such as the efficient...

Words: 1706 - Pages: 7

Premium Essay

Ethical Decision Making

...Daniel C. Frost Leadership and Organizational Behavior- BUS 520 November 16, 2011 Strayer University-Allentown Campus Alan Mulally, CEO, Ford Motor Company 1.         Discuss the role of leadership and how it can impact organizational performance. Answer: Leadership is the process of developing ideas and visions, living by values that support those ideas and that vision, influencing others to embrace them in their own behaviors, and making hard decisions about human and other resources (Hellriegel & Slocum, 2011, p. 290). Whereas according to Richard et al. (2009), organizational performance comprises the actual output or results of an organization as measured against its intended goals and objectives. Effective leadership is a personal role that requires the blending of motivational, strategic and management skills to align focus, energy and drive while creating a culture that encourages individual thinking and attainment. For a leadership to impact organizational performance positively, said leadership has to posses the four leadership traits of intelligence-successful leaders tend to have somewhat higher intelligence than their subordinates; maturity and breadth-successful leaders tend to be emotionally mature and have a broad range of interests; achievement drive-successful leaders are result oriented; when they achieve one goal, they seek another and integrity-successful leaders, over the long term, usually have integrity. A leadership that possesses...

Words: 1835 - Pages: 8

Premium Essay

Hndbusiness

...MUSTAEEN SIDDIQUE COLLEGE REG ID: GCPK-HND1099 EDEXCEL REG ID: DJ86477 Contents Introduction 3 Tesco plc 3 LO 1 Understand the Relationship between the Organizational Structure and culture 4 Task 1.1 Similarities and differences between organizational structures and culture 4 Task 1.2 Ways the relationship between an organisation’s structure and culture can impact on the performance of the business. 5 Task 1.3 The Major Factors which influence individual behavior at work 7 LO 2: Understand different approaches to Management and Leadership 8 2.1 Leadership styles and the effectiveness of these styles in different organisations 8 Task 2.2 Advantages and disadvantages of theories in practice of Management 9 Task 2.3 Different theories and approaches to Management 11 LO 3 Understand ways of using Motivational Theories in Organizations 12 Task 3.1 The impact that different leadership styles may have on motivation in organisations in periods of change 12 3.2 Motivational theories and situations where they are used 13 3.3 Advantages of Motivation Theories for Managers 14 LO 4 Understand mechanisms for developing effective teamwork in organization 15 4.The nature and Behaviour of groups and teams 15 4.2 Factors required for the development of effective teamwork 16 Task 4.3 the impact of technology on team functioning within an organisation 16 Conclusion: 17 References and Bibliography 18 Introduction The globalization and the fast changes...

Words: 1728 - Pages: 7

Premium Essay

Value Centric Leaders

...on values, we propose a model which answers the call from scholars to examine the underlying processes through which authentic leadership impacts followers’ behavior and performance. We propose that by developing intrapersonal and interpersonal continuity in their followers’ values (value salience and person-supervisor value congruence respectively), authentic leaders could enhance followers’ task performance and organizational citizenship behavior, and reduce counterproductive work behavior. The model also contributes to research on values by examining the psychological and contextual factors, i.e. person-organization value congruence and self-concept clarity, which moderate the relationship between authentic leadership, value congruence and follower outcomes. Introduction Having witnessed several failures of corporate and economic machinery in the recent past, management scholars have been forced to look into the underlying reasons thereof from several different perspectives. As a fundamental shift in focus onto softer aspects of corporate leadership, leaders are being increasingly scrutinized for their leadership styles and moral values. Through this paper, we aim to contribute to a growing area of research in this domain by proposing a theoretical model to understand how leaders’ attitudes and values impact followers’ behavior and performance. Complex work organizations are an ideal context for exploring human values (Connor& Becker, 1975). In the person-environment...

Words: 8787 - Pages: 36

Free Essay

Organizational Behaviour

...An Assignment On Organizational Behaviour 1 Table of Contents Introduction: ............................................................................................................................... 3 Task: 1 ........................................................................................................................................ 4 1.1 Organisation structure and culture of ASDA PLC and British airlines: .......................... 4 1.2 Asda’s structure and culture impacts on its performance: ............................................... 5 1.3 Factors that influence the behaviour of ASDA’s employees at work: ............................. 6 Task: 2 ........................................................................................................................................ 8 2.1 Effectiveness of the leadership styles used by ASDA and British airways: .................... 8 2.2 Organizational theory practiced at ASDA & how it strengthens management practice: 9 2.3 Management approach used by ASDA and British airways:......................................... 10 Task 3 ....................................................................................................................................... 11 3.1 Impact of Different Leadership Styles on Motivation during Changes: ........................ 11 3.2 Motivational Theories: ............................................................................

Words: 4851 - Pages: 20