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1.

Answer. The greater part of the individuals needs the motivation to like their occupations and execution in an ideal manner. A few people are riches inspired, while others discover acknowledgment and rewards specifically spurring. Inspiration force inside the working environment has a straight contact on specialist yield. Individuals who are encouraged and enthusiastic about their transporter complete their regular employments to the best of their inclination support accordingly. Motivation is gained from the contact of both conscious and oblivious factors, for example, the power of want or need, impetus or prize estimation of the objective, and desires for the individual and of their friends. (Rabideau, 2020)

How about we take the case of our Leader in debate society on campus, he is exceptionally energetic with the vast capacity to incite feeling; he is extraversion which makes him so chatty and emphatic he likewise has an excellent nature and he is helpful as well as trusted. Henceforth, every part of his character is loaded with inspiration, and he can get two the whole group. Additionally being a successful leader and achieving objectives implies functioning admirably together with others both inside and outside the organization. To work viably together, pioneers need to see one another. This getting comes, at any rate to some degree, from perceiving how individuals contrast from one another, that is, from valuation for character characteristics.

Everyone who is leading or managing needs some basic needs like self-actualization, physiological needs, and safety as its comprehensively shown in Abraham Maslow’s hierarchy theory, his theory deals with meeting the core necessities, which include well-being, safety, belonging, and esteem. To implement this at work, managers/leaders can apply a variety of training and programs that celebrate differences in people. Safety issues are governed by law, but when someone takes an extra effort to look at things like goals or job function and design, it adds to followers’ morale. One should reduce the use of authoritarian methods that raises fear in Peoples. (McLeod, 2020)

Followers should be regarded by their Managers and associates during working hours. Besides, laborers ought to have the option to develop an activity plan for singular achievement. Same in the Hawthorne theory, that is the productivity theory dependent on the predicament of men to work. This incorporates shifts hours as well as breaks. It likewise includes observing them as a basic element of motivation to increase their performances. Hawthorne found that individuals were increasingly imaginative comprised of being watched instead of changes in their physical working conditions.

It can be concluded on the fact that motivation can aid immensely in enhancing the performance of any individual. From appraisals to appreciation, motivational speeches to leading from the front, all these factors aid immensely in the advancement of any individual. Whether the team members are unprepared or fearing, a brave leader can aid in rising up their level of motivation.No matter how a predicament is, they can perform beyond their own expectations primarily on the basis of being motivated by a self-motivated leader.

2.

Answer. Yes, I do agree with the statement that a satisfied worker performs well at the workplace. Employee satisfaction is highly recommended as one of the most integral elements in making his work span at a workplace, fulfilling and happy. Many measures can make an employee satisfied at the workplace, and that can make his/ her time at the firm satisfied. For instance, If an employee is unsatisfied with his/ her job title or description. They will certainly not be able to perform well.

If a person who was hired as an accountant is given the responsibilities of marketing, just because they had a team member leave the company, that will undoubtedly increase the level of dissatisfaction of that employee on that job. If the person is dissatisfied, he/ she will give less effort and eventually lose the job. A person with accounting capabilities won’t do marketing that well. Another example is the late hours. If an employee is forced to sit late hours without a proper incentive, he/she won’t be able to work following the demands of the same level of motivation and hence become unsatisfied with the job. (PUSHPAKUMAR, 2008)

Appreciation is another major element in the making of a satisfied employee. If a person achieves immensely and the boss doesn’t appreciate his/her effort, he will undoubtedly lose interest in performing well and become less satisfied with the work. Likewise, if the pay doesn’t increase despite he/her playing so well will end up the job dissatisfied person & employee. Payment is the integral element that makes the person satisfied with the job that leads to performing well. Adding to that, Feedback is also critical, for an employee that gives them the satisfaction that how are they performing. If they are not performing well, they must be told, and if they are, this should also be said to them. (Deepa, 2014)

Policies and practices at the workplace also aid in making an employee not satisfied with the work that they are doing. If the systems are rigorous and the employee works with a different mind frame, he won’t be able to attain that task appropriately. If the firm’s policies and practices are incredibly flexible and the employee likes working in an organized workplace with equal policies applicable equally for all, he/ she won’t be able to work at the workplace with the same level of motivation and lose job satisfaction. (PUSHPAKUMAR, 2008)

Hence it can be concluded on the fact that, if an employee is not satisfied with their work from any of the above viewpoints or in reverse, is confident with them, it will automatically impact their level of motivation at every level, and they would not only be able to give their 100% but also achieve their goals to the best of their abilities and excel at every level. The workplace environment, policies, appreciation, and care received from co-workers, all work excellently in exact accordance with the level of satisfaction at the workplace.

3.

Answer. The world of work is changing rapidly nowadays from remote offices to working on your phone from anywhere in the world. Technology has been a significant factor in transforming the whole idea of the workplace. The rules and routines have become flexible with deadlines becoming a part of the method. The use of technology has made it a lot easier to travel and do work, both at the same time. Employees moving across the globe do this for fun while they go from one place to another for meetings.

They have become extremely vigilant and from email’s many workplaces work on WhatsApp groups. Teams work side by side on projects and keep updating regarding the plans with the team members where ever they are. Adding to that, ideas and innovation both mean immensely as compared to consistency and performance. The elements of creativity and dedication both work alongside the long-lasting workplace relationships that impact the workplace environment. Social Media groups have also intervened where co-workers from different groups work together.

Another element is the importance of skilled workers that is increasing across the globe as a fa factor in increasing productivity and efficiency. Skilled workers, not only aid in building prodigies but also train the junior co-workers to make to work side by side. They also have better chances of secure jobs and long-lasting careers. They rely on skills to cover gaps and enhance their skills further that leads them to gain even more financially. Hence their skills as well as performance both take them ahead of others with better chances of getting increment and promotions quickly.

Adding to that, strategic skills are also becoming integral at workplaces, and organizations work as per long-term and short-term strategies to run their business activities. Moreover, it is not much about remaining stuck in the same hierarchies and working under similar bosses. Once a person is not satisfied with working under one boss, they can go up to talk to the senior management to get a hold of their own team. It’s all about ideas, innovation, and if an individual lives up to these, they can be their own boss.

Entrepreneurship is also underway across the globe with people from around the world, bringing up ideas and willing to give their products around the world. Amazon and eBay are the two new market places where people from across the globe place their products and sell directly to the customers. Workplace and large warehouses have also been replaced with modern-day digital offices and workplaces have been wholly digitized which has led to the old traditional way of working extinct and new immersive ideas are being injected. It can be concluded on the fact that all businesses over the years have digitized and have led to fresh business minds emerging and giving their 100% to make the overall market grow as well as make working easy. All these developments are supported and accepted globally now.

4.

Answer. In an institute, attribution theory is proposed to assist a person in understanding the reasons for human behavior. This hypothesis is related to the impression of individuals busy working. The motivation behind this conversation is about the attribution hypothesis of organizational behavior. It portrays the situation of this theory in clarifying execution grinding away with the utilization of models and realities. It will talk about the reason and capacity of this theory incomprehension of the behavior or impression of individuals in the association. To know hierarchical conduct, it is basic to think about organizational behavior. (Dasborough, 2011)

Machines or structures are not the 2 elements that formulate an organization. All things considered, it additionally needs individuals who associate with one another to achieve an aggregate target of the association. As per Robbins, organizational behavior helps in understanding what individuals at work think and do in an association. It examines the impact which the gatherings, people, and hierarchical structure have on behavior inside the associations for applying the information for upgrading the viability of the association.

There are different reasons why associations should utilize the speculations of organizational behavior. The essential objective is noteworthy difficulties, which the association confronting is changing in differing workplaces. Organizations are getting progressively different as far as race, ethnicity, and sex. Everytheory of organizational behavior is made for understanding a fundamental part of individuals and association. The attribution theory of OB is intended to follow the observation and to use in the dynamic procedure in the association.

Attribution theory was acquainted with clarifying how we evaluate the people in an unexpected way, contingent upon the importance we credit to a given activity. By and large, this theory suggests that when we see the conduct of a person. This is a critical theory for the associations since it can help the top administration in understanding the explanations for the workers’ conduct. It can likewise help the representatives in understanding the musings about their practices.

Consequently, on the off chance that you can comprehend that why you are carrying on with a particular goal in mind and why others around you are doing as such, it implies you have a superior comprehension of others, yourself, and generally speaking association. The impression of the purposes behind conduct can affect the activities and judgment of both the workers and managers. It can assume a fundamental job in the inspiration procedure. It is noteworthy to apply the attribution theory in a firm for understanding the conduct of the representative grinding away. It can help the individuals in understanding their accomplishments and another person’s reaction.

There are a few components that can help the individuals in this system. Directors can utilize these attributions in rousing the individuals for the achievement of the association. This hypothesis can be seen as applicable to the investigation of the observation, position, which can manual for workers influencing their confidence. The report infers that attribution theory oversees how the perceiver utilizes the data to know the easygoing clarification for a particular occasion.

References

Dasborough, M. T. (2011). Attribution theory in the organizational sciences: A case of unrealized potential. John Wiley & Sons, Ltd., 1-7.

Deepa, E. (2014). Effect of Performance Appraisal System in Organizational Commitment, Job Satisfaction and Productivity. Journal of Contemporary Management Research, 72-82. Retrieved from https://proquest.com: https://search.proquest.com/openview/c5a4ee17e144ffc432bf274f9254fa24/1?pq-origsite=gscholar&cbl=2039847

McLeod, S. (2020, 3 20). Maslow’s Hierarchy of Needs. Retrieved from https://www.simplypsychology.org: https://www.simplypsychology.org/maslow.html

PUSHPAKUMAR, M. D. (2008). The Impact of Job Satisfaction on Job Performance :. Retrieved from http://wwwbiz.meijo-u.ac.jp: http://wwwbiz.meijo-u.ac.jp/SEBM/ronso/no9_1/08_PUSHPAKUMARI.pdf

Rabideau, S. T. (2020). Effects of Achievement Motivation on Behavior. Retrieved from http://www.personalityresearch.org: http://www.personalityresearch.org/papers/rabideau.html

 

 

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Social corporate responsibility (CSR) is a long term framework that companies adopt to enhance the welfare of society. In the past decade, the initiatives companies took for their stakeholders offered them several benefits regarding reduced costs, maintaining legitimacy and gaining competitive advantages. Different companies like Coca-Cola and Walt Disney, through their business, built reputational capital and achieved a win-win position through the value creation process. The term CSR is rapidly influenced by legitimacy and engaging modern concepts like business ethics, managing stakeholder’s value and social performance. The expression of these terms is related to multiple investment options, practices and corporate citizenship acts(Gong Ke, Z. Z. 2011).

Business management scholars always investigate the significance of CSR as under organizational objectives, yet the influence of profitability is linked to these goals. The economists Milton Friedman believed that companies should focus on economic interests as the stakeholder’s value. The variety of stakeholders, such as suppliers, employees, and customers’ community, feel value creation is a significant process because business gets to benefit from CSR programs.  The stakeholder’s relationship can be neutralized when business cases are more pragmatic(Jingwen Mi, S. J. 2018).  Socially responsible investment movement allows a positive relationship between corporate financial performance and corporate social performance. A research study has found a relationship between financial performance and social initiatives of companies that were aligned on their organizational goals. Considering CSR a strong business case, it is likely to consider that improvement of its bottom line. This viable choice of business is used to risk management and implement low-cost practices. Due to CSR implementation, a competitive advantage is achieved, which related to synergistic value creation. A business case under empirical research work for the potential structure of the economy that is built on the syncretic stewardship model ((Flávia Cavazotte, N. C. 2016).

CSRs or Corporate Social Responsibility have developed into a very integral element of today’s business setting. CSRs are mainly an ever progressing business process that initiates sustainable business development into any organization. Actually, these practices are the procedures that support a company to be socially responsible to not only its stakeholders but also towards the general public. The existence of a good CSR develops a positive image on the economic, social and environmental factors attached to the business.

Katie Schmidt is a creator of a famous clothing brand ‘Passion Lilie’, she is a proud business entrepreneur for starting an ‘ethical apparel brand’, that means an ethical business, with a fine CSR, can impact positively on a business by developing an organizations image, creating the group and motivating the employees as an entrepreneur. The reason behind in most of the times public opinion is very important for the success of the company. When a typical company has a positive picture in its customers’ eye, it surely can support the business to develop a reputation and name with their consumers that can be very valuable for all the long and short term success (Gong Ke, Z. Z. 2011).

The organizations in the developed countries may react to civil society and shareholders pressure to have social responsibility with extra seriousness by implementing strong CSR structure, except only to settle their opponents and exclusive of any awareness to real changes in their procedures. That means deliberate CSR obligations can just be the tool for organizations in the progress to anticipate actual regulation.

For example, Coca-Cola has started a new product Coca-Cola Life in many countries recently. It is sold in a recyclable bottle or in a green can, many critics state that with as much as 17 grams of sugar and 68 calories in one serving of soft drink is a tactic to trick the customer by the healthy product appearance. Nutritionists say that Coca-Cola Life must not be taken as a healthy option (Low, M. P. 2016).Displaying valuable Corporate Social Responsibility is a significant part of a company’s bigger goals. It is moreover an integral part of developing a more engaged company (DISNEY, W. 2019).

The question for organizations to adopt social responsibility is a never-ending issue. There apply two major factors of opposing Corporate Social Responsibility. Number one, it is thought that a company is a profit-based operation and production unit, and profit escalation is the basic goal of its administration. It has no obligation and responsibility to fulfil the government as well as society’s responsibilities towards the goodwill of the world. Secondly, the corporate social responsibility will change the way of the utilization of capital of the company that will be resulted in cost increase and fewer profits. It also can weaken the cooperativeness of the company; decrease the main targets of the company, therefore affecting the interests of financiers, workers and consumers. Thus, the company cannot afford this much social responsibilities. But, on the other side, many critics think that it is important for companies to take CSR for the betterment of society and its people (Guido Berens, C. B. 2005).

The significance of a strong CSR can be observed by the different research levels and examinations made over time by the time either in the shape of examining a company’s achievement or just by finding out by questionnaires and surveys the significance that these CSRs are kept at. One such study that supports this conducted by Cone Communications, they in research concluded that 60% or more Americans think that businesses should work for environmental and social change where government rules are absent. Other than this, a massive 90% of customers expressed their opinion that they like to buy a product of such company who worked for any issue people care about and around 75% of people surveyed rejected to purchase from such company who come to know that the company supports any contrary issue(Flávia Cavazotte, N. C. 2016).

In the present day, a company’s status is very important as customers, shareholders and employees are starting to priorities the Corporate Social Responsibility when selecting a product or brand as well as any organization for support or investment. Ahead of it, the same persons have started to think that the investment companies are liable for the change in their business approach, profits and practices. Failure to work at a suitable level will surely direct to some type of negative consequences for the company in question. Walt Disney is a globally famous animation entertainment company. To pass happiness to people around the world is their prime objective. Walt Disney produces goods with an ethical approach by minimizing its environmental effects. In March 2019 Walt Disney expanded social charity services and promised to spend 100 million USD in the coming five years to support and encourage patients of children hospital and families all over the world (Jingwen Mi, S. J. 2018).

In China, Alibaba group has worked to develop the quality of life of people of rural areas. Farmers in China are speeding up their integration into the era of internet, captivating young people from around China for the development of rural areas, promoting people of rural areas, and changing the global perception about China (Soo, Z. 2019). Alibaba has worked for the international market, created different electronic stages to support economic development, helped underdeveloped and developed countries, above all supported young people incorporated into world’s trade, and benefited the small business groups around the world.

Companies can get capabilities, social capital and resources during the course of accepting social responsibility. It brings several advantages to the companies, like, customer loyalty, retention and absorption of good employees, development of the commercial image, social trust and network, and progress in innovation potential (Low, M. P. 2016).

Business firms acquire transparency and sustainability due to CSR implementation because it is ubiquitous. Due to the structural framework, economic behaviour describes the relationship between society and organization, yet the organizational goals are necessary to be followed. In some research frameworks, this relationship is linked with aims and objectives. Certain values in organizations emphasize that sustainable development is oriented to organizational goals. CSR under multinational enterprise is implied on business strategy with an inherent focus on global supply chains. The globalization under environment protection and human resource management is prevailed in the CSR framework to organize sustainable development goals (Flávia Cavazotte, N. C. 2016). Inter-governmental bodies under cooperation and UN-based conventions have viewed CSR impact inherently.

The political, social and environmental factors are key to consider in small, medium enterprises because global supply chains are working on effective communication and technology-based interventions. According to research evidence, social values led models to allow organizations to adopt CSR initiatives because it works positively for economic and non-economic reasons. The syncretic business model allows narrow and broad bases that show how financial performance can directly impact corporate social responsibility model of organizations. It is found from research studies that organizational goals are positively related to financial performance that impacts CSR. In different frameworks, firms need to identify and exploit the opportunities that can serve business productively (Worldwide, F. 2015).  It is true that stakeholders’ eyes’ should not be blurred under the act of corporate social responsibility but accurate picture should be given.

References

Worldwide, F. (2015, November). Financier. Retrieved from The importance of corporate social responsibility: https://www.financierworldwide.com/the-importance-of-corporate-social-responsibility

Flávia Cavazotte, N. C. (2016). A Study of Publicly Traded Companies. Internal Corporate Social Responsibility and Performance.

Guido Berens, C. B. (2005). Corporate Associations andConsumer Product Responses. TheModerating Role of Corporate BrandDominance, 35-48

Soo, Z. (2019, November 11). South China Morning Post . Retrieved from Consumers from China’s smaller cities lift Alibaba to new Singles’ Day record as buyers shrug off trade war: https://www.scmp.com/tech/e-commerce/article/3037137/chinese-consumers-spend-us1-billion-first-minute-alibabas-singles

Jingwen Mi, S. J. (2018). Journal of Management and Sustainability. The Relevance of Social Responsibility and Financial Performance of Listed Companies , 41.

DISNEY, W. (2019). 2019 CORPORATE SOCIAL RESPONSIBILITY UPDATE. The Walt Disney Company.

Gong Ke, Z. Z. (2011). Engineering Education and Management. In C. Z. Liangchi Zhang, In JiLin Province Native Brand Design Thinking (pp. 437-439). Berlin: Springer.

Low, M. P. (2016). Asian Journal of Social Sciences and Management Studies. Corporate Social Responsibility and the Evolution of Internal Corporate Social Responsibility in 21st Century.

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Abstract

Performance can be by numerous factors such as the financial performance, profits, return on investment, market share, shareholder value, economic value etc. A leader transforms the performance of an organization by being perceptive to the environment. This is incorporated into the goals and objectives of the organization so that the leaders can support the goals of the organization. Researchers like Musah (2019) have also stated their stance on transformational form of leadership that it is directly proportional to the organizational performance by providing support with the hypothesis that the leaders who engage in knowledge acquisition, demand conceptual values and keep the followers motivated to enhance the performance of the employees (Musah, 2019).The research will focus on leadership, transformational to be more precise, and its impact on the performance in small and medium enterprises. This paper aims to analyze the impact of transformational leadership on performance of an organization. The underlying connection between organizational performance and transformational leadership will be established within the paper followed by future research propositions.

Literature Review

Performance and Leadership styles

When it comes to Small and Medium Enterprises, Hambrick (2007) argues that there is a dominant role of upper-level management in small and medium firms. Hambrick (2007) uses the upper-echelons theory to back his argument that upper management plays a considerably significant role in enhancing the organizational performance of a firm (Hambrick, 2007). The field of vision such as the directions they prescribe and the selective perception they adopt such as selectively opting for what they want to hear as well as see. When it comes to the conceptualization of leadership styles, the dichotomy of transactional as well as transformational leadership styles has received immense attention (Arif, 2018).

Arif (2018) states that transformational leadership happens to be based on four interrelated aspects. The idealized influence is the ability of a leader to provide his employees with praise, value as well as vision. Uchenwamgbe (2013) asserts that the inspiration aspect deals with the high expectations which the leader has for his employee’s high achievement (Uchenwamgbe, 2013). Intellectual stimulation denotes the stimulation which a leader provides to his or her employees for creative thinking and individual consideration is the degree to which employees are prompted to think that the leader provides exclusive attention to each employee (Arshad, 2016). Transactional leadership, on the other hand, is more focused on exuberating the expectations of the employees as well as keeping reward and punishment hand in hand concerning the performance of the employee (Chaudhry, 2019).

Transactional leaders thus strive to obtain results. Transformational leadership, according to Arif (2018), is perfectly relevant to Small and Medium Enterprises because the dominant role of an entrepreneur aids top management to carry out transformational leadership. Transformational leadership can not only impact growth as well as the profitability of an organization but also affect organizational performance directly (Samad, 2012).

Transformational Leadership

Transformational leadership allows the employees to exploit as well as identify different opportunities for a company (Rahmawati, 2019). For example, employees might be sensitized to have more efficient task completion, lower costs and in turn enhance organizational performance. Furthermore, the efficiency of employees leads to more opportunities for the business to expand which eventually leads to growth and profitability (Arif, 2018).

Madanchian (2017) states that good leadership is consequential for good organizational performance and leadership can only be regarded as effective when the performance of the organization enhances. Thus advancement or depreciation of a firm relies on its leadership as it influences employee turnover, employee satisfaction, work effectiveness as well as the efforts of the leaders (Aziz, 2013). To enhance the success of the SME, good leadership has been recognized by researchers like Madanchian whose research shows that weak leadership is the main cause of failure in small businesses. This is the main reason why SMEs guide their management to develop good leadership. For avoiding failure, SME’s can only prepare themselves through the adoption of different types of leadership roles and by placing adequate managers who are equipped in transcending barriers and enhancing the work performance of their employees when times get tough (Ahmad, 2019).

Thus the organization must develop different competencies and varying levels of leadership by mobilizing goals and keeping sure that objectives are clear (Suryaningtyas, 2019). Building on a performance that is driven, developing talents in the best way possible, creating a channelized climate which is favorable for innovation, building on value of culture and stimulation learning are some of the aspects which a good leader can emphasize on for enhancing quality of work and creating team cohesion (Madanchian, 2017).

Transformational Leadership and Organizational Performance

Transformational leadership is the most common style of leadership within an organization and happens to be one of the most effective methods for enhancing the performance of an organization. These type of leaders motivate their associates or juniors to broaden their view or exert new prospects of attaining their goals. This is because these leaders proactively aid the followers to obtain high standards. (Feng, 2016)

Xenikou (2017) states that followers of transformational leaders move beyond the realm of immediate self-interest and verge into an environment in which the employees are energized as well as motivated. Employees who work in an energized as well as motivated environment provide effective customer support and initiate a supportive climate.

Noruzy (2013) conducted research that revealed that transformational leaders impact the performance of the followers as there is a strong bond developed between leader and follower (Noruzy, 2013). Thus transformational leadership not only enhances the identification and emotional connection between the follower and supervisor by making the follower feel comfortable but also helps the follower to go beyond expectations. Thus transformational leaders have a positive impact on the performance of the followers (Alhadid, 2016).

Song (2017) suggests that transformational leadership has close proximity to innovative capabilities and is known as the style of leadership which motivates those below to advance towards their self-interest (Song, 2017). Transformational leadership aids the employees to perform exceedingly well and motivates followers to achieve past expectations and to look past their current state. Researchers like Musah (2019) have also their stance on transformational leadership is directly related to the organizational performance by providing support with the hypothesis that the leaders who engage in knowledge acquisition, demand conceptual values and keep the followers motivated to enhance the performance of the employees (Musah, 2019).

Manaf (2014) states that transformational leadership affects growth and organizational performance directly (Manaf, 2014). This line of argument is backed by the premise that a transformational style of leadership happens to be not limited to just technical professionals because it can be applied to all the different employees. Henceforth, the positive influence which transformational type of leadership has on performance and job satisfaction of the employees can be inspired by intrinsic motivation as well as by the guidance of the leaders (Sayadi, 2016). Thus it can be argued that transformational form of leadership style enables the employees not just to exploit business opportunities but also to identify different business opportunities for a specific company (Anaesth, 2020).

Business Opportunities

Transformational leadership enables the organization to exploit business opportunities. For instance, employees might be motivated to work more efficiently, decrease costs, enhance profitability and in turn increase performance (Jyoti, 2015). Gaining new clients, venturing into new markets, doing market penetration, increasing sales, etc. Based on these arguments, Ibrahim concludes that transformational leadership has a positive effect on organizational performance (Ibrahim, 2019). Furthermore, Ibrahim describes leadership as being a conceived process where individuals or an individual influences a group to move towards a specific direction. Leadership has been used in human endeavors such as social work to business to even academics and the degree to which leadership exhibits growth depends on the type of leadership used (Alrowwad, 2017).

Rose (2019) is of the view that the role of a leader within an organization helps to identify goals that are worthless and devise strategies that can achieve goals that are of value to the organization (Rose, 2019). Thus leaders must be very objective and should indulge in examining situations before they can make any form of decisions. Tahir (2016) asserts that objectivity happens to be the ability of a leader to look at issues in neutral light where one can impersonally understand problems in a neutral light (Tahir, 2016).

A leader transforms the performance of an organization by being perceptive to the environment. This is incorporated into the goals and objectives of the organization so that the leaders can support the goals of the organization. Rohanna (2017) states that leaders are also able to establish proper priorities, recognize what is essential and what can be kept aside (Rohana, 2017). Thus by looking for better alternatives and keeping perspectives into considerations leaders can keep the alternatives that are worthy of being implemented into considerations.

Furthermore, Bhatti (2019) states that leaders are also good at crisis management which is why a leader should be able to settle all kinds of differences and disputes among his employees. This will make the workplace environment extremely easy to work which will eventually impact productivity. For a leader to plan strategically he or she needs to be a good decision-maker as this scenario impacts the implementation of long term goals (Bhatti, 2019).

Goal Achievement

İşcan (2014) states that every organization consists of two or more individuals who happen to have goal centric approach. These individuals focus on three elements within the organization which include time, people and task (İşcan, 2014). Leadership happens to be the main function that is concerned with accomplishing objectives as well as goals. Leadership embodies the continuous process of coordinating with employees and involves a sum of behavior in which top-level management is in contact with subordinates effectively (Kumari, 2018).

The role of a leader is to provide direction for the employees, co-ordinate activities, ensure that the individuals within the organization are consistent in achieving the organizational goals and achieve organizational objectives (Chen, 2018). The quality of a leader can only be reflected in organizational performance. This is because the better the organizational performance, the more they benefit the organization (Madanchian, 2017).

Mohammadi (2014) argues that the most successful leadership style happens to be a charismatic leadership style (Mohammadi, 2014). Transformational leaders tend to develop a vision and direction which all the followers are asked to execute. The transformational leadership invites creativity as well as an innovation which is considered motivational for the employees. However,Manzoor (2019) states that one drawback of this kind of leadership style is that the followers might become too dependent upon the transformational leaders’ direction which means that once the leader moves away, these followers will become awry and lose direction (Manzoor, 2019). This problem can become worse if the leader leaves the organization. If the leader does not train the subordinates well then that will mean that any replacement of the leader will prove to be utterly useless (Avolio, 2015).

Maina explored that not only define problems related to organizational performance but also give a solution to that problem (Maina, 2018). Maina (2018) explains that an organization that achieves its goals through obtaining good performance. According to Chorng‐Shyong (2013), the performance of a firm can be measured through various ways which include measuring the profitability, sales per input, factor productivity and Lerner index (Chorng‐Shyong, 2013). The main objective of any business is to enhance the performance of the organization. Wang suggests that the simplest way to know a firm’s performance is by examining the leadership style of that firm (Wang, 2014). However, Wang (2014) is of the view that a firm’s performance can be tracked using non-financial measures such as job satisfaction, leadership style and job performance (Wang, 2014).

While Ghasabeh (2017), initially states that transformational leadership emphasizes on satisfying the basic needs of the organization through inspiring followers, he also argues that transformational leadership can create a better working environment for the individuals by providing solutions to issues. This is because transformational leadership employs behaviors exhibited by motivated and charismatic leaders (Ghasabeh, 2017).

Gutiérrez, (2012) analyzes the influence that transformational leaders can have on organizational performance and concludes that the indirect interrelations which transformational leaders have with the employee’s aid in enhancing organizational performance. The results of Gutiérrez’s research reveal that transformational leaders enhance the innovation and learning of the organization as well as influence the performance of the organization positively (Gutiérrez, 2012).

In order to develop effectiveness within an organization, leadership must be exercised in such a way that it transforms the approach of the employees towards their work. The nature of the relation between transformational form of leadership and performance of an organization happens to be directly proportional. This is because Ahmad (2019) states that trust, confidence and respect which the leader bestows upon his or her subordinates results in accentuated performance by the employees and eventually leads to a stronger link between the subordinates as well as the leaders(Ahmad, 2019). Leaders tend to follow up on their subordinates and track their performance which leads to effectiveness and good performance.

References

Ahmad, M. (2019). Transactional and Transformational leadership impact on Organizational Performance: Evidence from Textile sector of Pakistan . European Online Journal of Natural and Social Sciences, vol.8, 98-109.

Alhadid, A. Y. (2016). The Relationship between Leadership Practices and Organizational Performance. International Journal of Business Administration, 30-40.

Alrowwad, A. (2017). The Impact of Transformational Leadership on Organizational Performance via the Mediating Role of Corporate Social Responsibility: A Structural Equation Modeling Approach. International Business Research, 250-360.

Anaesth, S. J. (2020). Leadership and organizational performance: Is it essential in healthcare systems improvement? A review of literature. Saudi Journal of Aanaesthesia, 69–76.

Arif, S. (2018). Transformational Leadership and Organizational Performance. SEISENSE Journal of Management , 60-63.

Arshad, A. S. (2016). Transformational Leadership and Business Performance:. International Conference on Business and Economics, 21-23.

Avolio. (2015). Transformational Leadership and organizational culture. Public Administration Quarterly, 112-121.

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