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Difference Between Leadership And Organisational Performance

963 Words4 Pages

MISIS No. : M00548458
Name: Avanthika Aravazhi

Does leadership make a difference to organisational performance?

The increasing impact of leadership on organisational performance has been a topic of interest amongst various researchers and has received substantial attention from managers. (Jing et al., 2008). This essay will explore the relationship between leadership and organisational performance based on the existing literature. Firstly, the essay will give a brief review about leadership and organisational performance. Then, it will explain different leadership theories and how they are relevant in the organisational performance. It will explain the different leadership styles, why they are important in an organizational environment and …show more content…

Trait theories suggest that leaders are “born” and that they have certain qualities within them which differentiate them from non-leaders. However, the difficulty in classifying these characteristics led to the downfall of this trait theory, which led to the upcoming of “style” and “behavioural” approaches to leadership (Stodgill, 1948). Style and behavioural theorists focused more on the behaviour and style of the leader rather than the characteristics of a successful leader (Likert, 1961). The main purpose of these studies was to show that leaders who practice democratic or participative styles are more successful (Fiedler, 1967). Initially, studies were focused on identifying one best way of leading .The main drawback of style and behavioural theories is that they neglect the important role which situational factors play (Mullins, 1999). This drawback led to the upcoming of the “situational” and “contingency” theories of leadership which shift the focus away from “the one best way to lead” to context-sensitive leadership (Vroom and Yetton, …show more content…

(Bakthi Babou (2008) noted the 'Transactional Leadership Vs. Transformational Leadership ' phenomenon).Transactional leadership consists of three components; Contingent reward, in which subordinates are rewarded according to their performance; Active Management by exception, in which leaders assess subordinates performance and corrective action if and when deviations occur; Passive Management by exception, in which leaders do not get involved with the situation until and unless the situation is serious (Bass, 1997). In this relationship, the leader offers rewards to the subordinates or punishes according to their performance. According to the productivity, the leader announces rewards (Bakthi Babou (2008) noted the 'Transactional Leadership Vs. Transformational Leadership '

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