Importance of leaders in shaping organizational culture
Discuss About The Link Transformational Leadership Employee?
Kamukama (2013) stated that the organizational leadership begins with the process of forming the culture by imposing various assumptions on the followers who take the individuals as leaders. The stability of the organization depends on the rate of success through which the organization can perform the tasks by assuming the goals and objectives that has been set by the leaders. The leaders are able to achieve the goals by being more reliable in the organization and provide better signals to the followers regarding the beliefs and the values on which the organization is based. After the culture that has been set in the organization is accepted, it becomes easy in maintaining the growth of the organization, as the beliefs and values of the leaders can be communicated to all the members of the organization. according to Cui, Li and Meyer (2015), the promotion of ethical culture by the leaders within the organization helps in providing better services towards the society and as demanded by them along with the ability with which the problems of the society can be addresses by the organization with respect to an event of a disaster, which will help the organization in competing with the rivals.
Rothermael (2015) was of the opinion that the leaders of the organization also have to deal with many complex situations regarding the decisions that need to be made so that the organization can achieve the goals and objectives within the environments that are complex in nature. The success of the leadership skills possessed by the leaders will depend mostly on the understanding and the knowledge that is present within them regarding the culture that is present within the organization. Friedman, Carmeli and Tishler (2016) stated that the leadership that is present within the organization can be defined as the behaviors, beliefs and the values that need to be differentiated from the other organization, which helps the organization in gaining a competitive advantage. The leadership present within the organization can be classified in to three levels. The first level is based on the artifacts and behavior, as it is the behavior that is portrayed by the followers within the organization. According to Sultana et al. (2013), this level shows the environment in which the work is being done along with the technological levels that are being used in the organization. Most of the employees within the organization showcase different characteristics and behaviors, which needs to be valued within the organization so that the work can be done in a better manner.
Porter, Rivkin and Kanter (2013) stated that the operation of the leaders is to be based on the principles of moral and discipline in an ethical manner within the organization. They need to act with respect to the values and beliefs that will be productive in nature so that promotion and establishment of culture can be done within the organization.
Aziz et al. (2013) stated that leadership is important with the organization so that it can help in identifying and developing the skills and knowledge of the followers that will help in increasing the performance of the organization. An example of this would be Steve Jobs of Apple Inc. and Michael O’Leary of Ryanair who was successful in implementing the changes that were required within the organization so that the level of performance can be increased within the company. However, the role of the managers is somewhat different than the leaders of the organization, as the managers mostly take advantage of their authoritative power so that it can help in bringing compliance among the members of the organization.
Promotion of ethical culture by leaders
Gharibvand et al. (2013) stated that the trait theory in leadership helps in identifying the various traits that are present within the person so that they can become potential leaders of the organization. There is a major issue with this theory that is there is no specific set of traits that are mentioned, which needs to be present within the leaders so that they can be effective in nature. The recent theoretical perspective of the model is that there are different levels of skills that are present within the leaders and has to be judged based on the motivation, integrity, confidence and the maturity of emotions that are present within the leaders.
Bhaswar and Chattopadhyay (2015) were of the opinion that the behavioral theory is based on the behaviors that are shown by the leaders, which can be classified in to task centered and people centered. The task centered behavior of the leaders puts more emphasis on the tasks and roles that are taken up by the leaders along with the planning and standards of performance present within the leaders. The behavior that is centered around the people is based on the leaders providing support to the followers along with the trust and confidence that is shown by them, which helps the leaders in being concerned with the welfare of the employees.
Romm (2014) opined that the contingency theory is based on analyzing the significance of the situation so that the effectiveness of the leaders can be understood within the present situation. The approach of leadership is that the leader may be successful in one organization but may fail in another organization depending on the situation where they need to carry out the operations.
The leaders have to act as an inspiration so that it can help in increasing the level of innovation within the organization. The leaders have to provide better establishments to the employees so that it can help in the development of innovative products within the organization. The leaders can provide this by constructing better circumstances within the working environment so that the employees can feel safe within the organization (Boulouta and Pitelis 2014). The increase in the level of innovation will help the organization in gaining a competitive advantage over the rival firms that are present in the market. It will also allow the organization in providing the products that are differentiated in nature. Additionally, the leaders of the business have to provide assistance to the level of creativity that will help in bringing positive improvements in the organization. This will help the business to provide better chances of being innovative within the market. The objective of the leaders has to be that the employees have to be encouraged in being innovated within the organization (Donate and de Pablo 2015). For example, Steve Jobs of Apple Inc. provided many opportunities to the employees in bringing out their creative side within the organization. This has helped the company in being one of the most popular companies when it comes to mobile phones. The company provides a better infrastructure to its employees so that the process of innovation can be carried out in a sustainable manner. The encouragement that is provided by the company helps the employees in providing the visualization on a collective manner so that the products can be of varied nature. These principles have helped in instilling and boosting confidence of the employees within the organization so that innovation can be followed in a continuous manner.
Different levels of leadership and their behaviors
According to Feng, Huand and Zhang (2016), the innovative attitude of the leaders will help in inspiring the followers and modify the products so that the organization can gain a competitive advantage in the market over the rival firms. The leaders need to find faults in the innovative products so that it can be developed in a new manner and do not penalize the employees due to the fresh thoughts that they implement in the work place. This helps in giving rise to new and innovative products within the organization. It also helps the employees in taking up responsibilities and work in an efficient manner so that the productivity of the organization can be increased to a great extent.
According to Bateh et al. (2013), the organizational development is the practices and knowledge that the leaders do so that it can help in changing the attitude of the employees within the work place and increase its level of productivity in an effective manner. The leaders help in improving the organization by relating it with the external environment so that the internal function can be high, which will help in better performance and increase the quality of life among the employees. According to HJP and Efendy (2017), the leaders have to instruct the managers and the consultants in the organization so that they can keep a track of the activities that are being done by the employees. Since it is not possible for the leaders to assess the responsibilities of the employees individually, they delegate the work to their subordinates, which helps in gaining better control of the organization. The difference between generation and application of knowledge has to be understood by the leaders so that it can help them in working in an effective manner within the organization.
Imran, Ilyas and Aslam (2016) were of the view that the scope of the organizational behavior has to be understood by the leaders, which includes the people, technology that is being used within the organization, social system and the structure of the organization. The people form an important part of the organization, as without them the productivity level cannot be increased. The existence of the organization is based on serving the people in a better manner, which will help the organization in competitive advantage in the market over the rivals. The leaders need to have a better understanding of the personality of the people and their values and attitudes need to be respected within the organization, which will help the employees in increasing their level of satisfaction within the work place. According to Chen (2015), the structure of the organization also plays an important role, as it helps in building relationship among the employees. The employees are assigned their respective duties so that they can work in accomplishing the goals of the organization. The structure of the organization helps in placing the employees in a hierarchical manner so that the senior employees can help the junior ones in performing the duties in a responsible manner so that it can help the organization in achieving its goals and objectives.
Trait theory in leadership
Goleman (2017) stated that the leaders have to ensure that adequate technologies are being used within the organization so that it can help the employees in working in an effective manner and increase the level of output. The use of proper buildings and machineries will help the employees in increasing their level of productivity, as the output of the organization will be increased along with the introduction of innovative products. The organization also needs to work towards the society as well. Wang, Tsai and Tsai (2014) were of the opinion that the influence by the organization within the society plays a pivotal role in earning the goodwill within the society, which will help in increasing the sales of the products in the market. An example of this would be Apple Inc., where under the leadership of Steve Jobs, the company was able to achieve a higher rate of returns, as Jobs always tried to encourage their workers in manufacturing innovative products so that it can help the company in gaining a competitive advantage in the market. This had led to the maximization of the level of profits for the company, as most of the products offered by the company were considered to be innovative and revolutionary in the market.
Jobs were mostly a charismatic leader and helped the company in having many worthy achievements by making the employees take new initiatives and be a visionary in the organization. The employees are made to achieve the goals of the organization through regular interaction with the leader so that it can help in building up the confidence of the employees. Sanchez and Benito-Hernandez (2015) stated that the charismatic personality of Jobs helped the organization and the employees by providing them with motivation and boosts the self-confidence within them so that it can help the employees in achieving the goals of the organization. This has led the company in gaining a competitive advantage in the market and increase the volume of sales as well. The use of the charismatic leadership within the organization will help the organization in being optimistic regarding the increase in the level of production, as the increase in the level will help in gaining a competitive advantage in the market. The encouragement that is provided by these leaders will help in contributing towards the additional production of the firm. The leaders have to use their power of intelligence so that it can help in reaching an agreement with the employees so that they can feel as a part of the organization.
Ton (2014) stated that the competitive advantage within the organization is the means through which the products of one organization can be differentiated with that of the other. This helps the company in gaining an upper hand in the market due to the unique characteristics that are present within the products and the customers can gain maximum level of satisfaction after it has been purchased by them. The rival companies try to improve their products on a continuous level so that they can match with the original products that are being manufactured by the parent company so that it can be distributed in the market in a competitive price. According to Dustin, Bharat and Jitendra (2014), the leaders of the organization have to make sure that the products that are being manufactured by their firm are different from the ones that are being produced by the rival companies. The leaders also have to price the product in a competitive manner so that it can help them in attracting most of the customers towards their company. The leaders have to help the employees in appreciating the objectives that has been set within the organization so that they can deliver the best output, which will help in meeting the goals in an efficient manner. McCallumj, Schimd and Price (2013) stated that this will help the leaders in gaining a competitive advantage in the market as well due to the level of efficiency that is shown by the employees towards the work. The leaders need to have a sympathetic character so that their strong willpower will help in guiding the human resources in the correct path. This will help the organization in utilizing its resources in the correct manner so that the work can be done in an effective way.
Behavioral theory in leadership
Akdogan, Arslan and Demirtas (2016) were of the opinion that the reaction of the leaders in a crisis situation helps in understanding the culture and values that are present within the organization. The situation of crisis helps the leaders in changing the norms and values so that it can help the organization in coping up with the difficulties that the organization may face. The action taken by the leaders help the employees and the organization in being visible and most of the attention is centered towards them. This helps the leaders in highlighting the situation of crisis in a better manner so that they can get the attention and help in improving the situation of the organization. According to VanderPal and Ko (2014), the situation of crisis helps the leaders in influencing the culture that is present within the organization with respect to the ethical and moral behaviors so that it can help in creating new values within the organization. This will help the organization in changing its nature of work and gain a competitive advantage in the market by increasing the level of output as well.
Muenjohn and Armstrong (2015) were of the view that the budget of the organization is an important part in deciding the resources that needs to be allocated within the work place. The leaders play a crucial role in channelizing the resources according to the budget that has been set within the organization so that it can help the organization in achieving its goals and objectives. The balance between the resources and the budget will help in increasing the level of output of the firm so that maximum satisfaction can be provided to the customers by providing them with the best products. Fleisher and Bensoussan (2015) stated that the distribution of the resources has to be equal within the organization so that all the departments can perform in a better manner, which will help in increasing the opportunity of the organization to increase its level of profits in the market. This will help the firms in gaining a competitive advantage in the market. It will also help the leaders in rewarding the employees in a handsome manner regarding the efficiency with which they will work within the organization and increase the level of output as well. Hartnell et al. (2016) stated that the use of the performance appraisal tool by the leaders is efficient in nature, as it helps in measuring the performance of the employees in a continuous manner. This helps the leaders in assessing the effectiveness of the employees and the use of knowledge within the work place so that the work can be done in an efficient manner. The employees will be able to achieve more than their desired output due to the fair system of rewards that is present within the organization. This will help the company in gaining a competitive advantage in the market over the other firms.
According to Martinuzzi and Krumay (2013), Apple Inc. has a good system of rewards for the employees who uses their skills and knowledge in producing innovative products. The employees are encouraged so that the level of efficiency in the firm can be increased, which will help in increasing the output level as well. The organization also punishes the employees who behave in an unethical manner, which has helped the employees in believing that the firm honors the trust that the customers believe in them. This has helped the employees in understanding the importance of the culture within the organization and they work in an effective manner so that the products can be delivered in the market in a unique manner. The use of the fair system of rewarding structure will help the employees in getting a better understanding regarding the compensation that they would be receiving if their productivity level is more than their target. This will help in providing motivation to the employees, which will directly affect their nature of work within the work place.
Contingency theory in leadership
The leaders have to set example within the work place by being a role model for the employees so that the employees can look up to them when they face any difficulty within the organization. The leaders need to provide proper and efficient methods of coaching so that it can help the employees in working in an efficient manner and increase the level of productivity within the firm (Dustin, Bharat and Jitendra 2014). The standards of ethics in an organization need to begin from the leaders and flow to the employees, which can be instilled among the followers by providing them with better levels of coaching. The proper method of coaching will help the firm in achieving the goals and objectives of the organization, as the leaders will educate the employees regarding the improvement of the skills and knowledge of the employees (Ton 2014).
The leaders also play an important role in the process of selection and retaining the employees within the organization. The leaders establish the base of the culture based on which the process of recruitment of the employees are done. This helps the organization in delivering the objectives and goals that are present in the organization by setting the values in a proper manner. The efforts of the process of recruitment has to be linked with the organization failing which can cause a disaster within the organization with respect to the moral and ethics that are followed within the workplace (Chen 2015). The leaders have to provide support to the development and hiring of the people with a specific set of skills, which will help in getting the work done before the assigned deadline. Through the process of hiring and selecting the employees, the leaders help in increasing the level of commitment among the employees as well, this helps the organization in a gaining competitive advantage over the other companies that are present in the market (Wang, Tsai and Tsai 2014).
The core competencies of the organization need to be enhanced so that it can help the company in gaining a competitive advantage over the other firms. The things that help in increasing the level of production needs to be utilized by the leaders so that it can help the company in being better than the other organizations that are present in the market of the same industry. The development of the competitive strategy in the organization has to be done based on the strategies that are being taken up the firm (Romm 2014). An example of this would be that Apple has a well developed team of research who are improving the ways of technology than the rival companies that are present in the market. This has helped the company in gaining an advantage over the competitors, as most of the customers invest their money in the products of the company. As a result of this, the company has been able to nurture the work climate that is oriented only towards the results. It has also helped in promoting the culture of the organization in a proper manner along with the establishment of expectations from the objectives that has been set within the organization.
Role of leaders in fostering innovation
Kasemsap (2016) was of the view that the culture that is present within the organization can also be used as a competitive advantage, as it helps the company in developing its strategies so that the attitudes and actions of the employees can be regulated. Apple has always been able to increase the entrepreneurial activities within the organization, as it has helped in the growth of the employees through proper innovative products. This has helped the organization in building up a healthy and strong culture by implementing the best strategies in the system, which has resulted in increasing the competitive advantage of the firm as well.
Apple had a visionary leader in the name of Steve Jobs who helped in connecting with the employees in an empathic manner so that he can help in influencing the thinking capacity of the people. This had led to the rise in the culture within the organization so that the viability in long-term can help in the success of the organization (Bateh et al. 2013). He believed in making a difference within the organization so that the future of the company can be safe and adequate investment in the human resources can be made. The function of the visionary leader is that they are concerned with the future of the company, which will be sustainable and will be able to make better returns on the investments (Chen 2015).
The managerial leader on the other hand follows the visionary leader who is given the charge of looking after the daily operations of the business. This will help in ensuring that the effectiveness of the employees can be measured and they can meet the demands of the company in the consumer market. These leaders will be reacting to the decisions made by the visionary so that it can ensure the running of the organization n an effective manner (Muenjohn and Armstrong 2015).
Conclusion
Therefore it can be concluded leadership helps in the overall success of the organization as well as gaining a competitive advantage for the firm in the market. The relationship between the leaders and the employees is an integral part, as it helps in influencing every step that are present in the process of strategic management. The leaders help in setting the goals and objectives of the firm so that the employees can be able to follow the policies and procedures, which will help in increasing the level of output and gain a competitive advantage in the market. The use of the resources in a proper manner will help the organization in maximizing its level of output so that the firm can attract the customers towards them. This will help in increasing the level of profit for the firm as well. The employees of the organization play an important role in achieving the targets, which needs to be monitored by the leaders. The leaders need to be proactive within the organization so that they can make efficient decisions, which will help in increasing the innovation within the organization. The skills and competencies of the employees have to be assessed so that they can be provided with proper and effective training that will help in honing their skills. This will help in improving the level of production within the system that will provide a competitive advantage to the firm over the rivals.
Reference List
Akdo?an, A.A., Arslan, A. and Demirta?, Ö., 2016. A strategic influence of corporate social responsibility on meaningful work and organizational identification, via perceptions of ethical leadership. Procedia-Social and Behavioral Sciences, 235, pp.259-268.
Aziz, R.A., Abdullah, M.H., Tajudin, A. and Mahmood, R., 2013. The effect of leadership styles on the business performance of SMEs in Malaysia.
Bateh, J., Heaton, C., Arbogast, G.W. and Broadbent, A., 2013. Defining sustainability in the business setting. Journal of Sustainability Management, 1(1), p.1.
Bhawsar, P. and Chattopadhyay, U., 2015. Competitiveness: review, reflections and directions. Global Business Review, 16(4), pp.665-679.
Boulouta, I. and Pitelis, C.N., 2014. Who needs CSR? The impact of corporate social responsibility on national competitiveness. Journal of business ethics, 119(3), pp.349-364.
Chen, Y.G., 2015. The Relationship Between Competitive Strategies of Kindergartens with Different Characteristics and Parent Satisfaction. Journal of Global Business Management, 11, pp.76-87.
Cui, L., Li, Y., Meyer, K.E. and Li, Z., 2015. Leadership experience meets ownership structure: Returnee managers and internationalization of emerging economy firms. Management International Review, 55(3), pp.355-387.
Donate, M.J. and de Pablo, J.D.S., 2015. The role of knowledge-oriented leadership in knowledge management practices and innovation. Journal of Business Research, 68(2), pp.360-370.
Dustin, G., Bharat, M. and Jitendra, M., 2014. Competitive advantage and motivating innovation. Advances in Management, 7(1), p.1.
Feng, C., Huang, X. and Zhang, L., 2016. A multilevel study of transformational leadership, dual organizational change and innovative behavior in groups. Journal of Organizational Change Management, 29(6), pp.855-877.
Fleisher, C.S. and Bensoussan, B.E., 2015. Business and competitive analysis: effective application of new and classic methods. FT Press.
Friedman, Y., Carmeli, A. and Tishler, A., 2016. How CEOs and TMTs build adaptive capacity in small entrepreneurial firms. Journal of Management Studies, 53(6), pp.996-1018.
Gharibvand, S., Mazumder, M.N.H., Mohiuddin, M. and Su, Z., 2013. Leadership style and employee job satisfaction: Evidence from Malaysian semiconductor industry. Transnational Corporations Review, 5(2), pp.93-103.
Goleman, D., 2017. Leadership That Gets Results (Harvard Business Review Classics). Harvard Business Press.
Hartnell, C.A., Kinicki, A.J., Lambert, L.S., Fugate, M. and Doyle Corner, P., 2016. Do similarities or differences between CEO leadership and organizational culture have a more positive effect on firm performance? A test of competing predictions. Journal of Applied Psychology, 101(6), p.846.
HJP, G.S. and Efendy, H., 2017. Self-Leadership Strategy at PT. Trustco Cipta Madani (Establishing Building Management Change). International Journal of Human Resource Studies, 7(4), pp.155-164.
Imran, M.K., Ilyas, M. and Aslam, U., 2016. Organizational learning through transformational leadership. The learning organization, 23(4), pp.232-248.
Kamukama, N., 2013. Intellectual capital: company’s invisible source of competitive advantage. Competitiveness Review: An International Business Journal, 23(3), pp.260-283.
Kasemsap, K., 2016. Utilizing social media in modern business. In Encyclopedia of e-commerce development, implementation, and management (pp. 2171-2182). IGI Global.
Martinuzzi, A. and Krumay, B., 2013. The good, the bad, and the successful–how corporate social responsibility leads to competitive advantage and organizational transformation. Journal of change management, 13(4), pp.424-443.
McCallum, S., Schmid, M.A. and Price, L., 2013. CSR: A case for employee skills-based volunteering. Social Responsibility Journal, 9(3), pp.479-495.
Muenjohn, N. and Armstrong, A., 2015. Transformational leadership: The influence of culture on the leadership behaviours of expatriate managers. international Journal of Business and information, 2(2).
Porter, M.E., Rivkin, J.W. and Kanter, R.M., 2013. Competitiveness at a Crossroads. Boston: Harvard Business School.
Romm, J.J., 2014. Cool Companies: How the Best Businesses Boost Profits and Productivity by Cutting Greenhouse Gas Emmissions. Routledge.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Sánchez, P.E. and Benito-Hernández, S., 2015. CSR policies: effects on labour productivity in Spanish micro and small manufacturing companies. Journal of Business Ethics, 128(4), pp.705-724.
Sultana, M., Rashid, M., Mohiuddin, M. and Mazumder, M., 2013. Cross-cultural management and organizational performance: A content analysis perspective.
Ton, Z., 2014. The good jobs strategy: How the smartest companies invest in employees to lower costs and boost profits. Houghton Mifflin Harcourt.
VanderPal, G. and Ko, V.S., 2014. An overview of global leadership: Ethics, values, cultural diversity and conflicts.
Wang, C.J., Tsai, H.T. and Tsai, M.T., 2014. Linking transformational leadership and employee creativity in the hospitality industry: The influences of creative role identity, creative self-efficacy, and job complexity. Tourism Management, 40, pp.79-89.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
