Pages:13

  Abstract

Leadership is among the top researched topics in academic literature and one increasingly accepted perception is that leaders are not born but made, and in order to be an effective leader that person needs to have the knowledge, patience, experience and skills to negotiate, work with others but most importantly to lead (Amanchukwu et al., 2015). Performance which is a multi-dimensional concept is one critical aspect of leadership of organisations today and therefore firms need to apply great leadership so that performance is positive (Shahin, Naftchali& Pool, 2014). Therefore, this literature review will be exploring the concept of leadership, its theories and styles and the impact it has on performance in firms, all with reference with academic journals.

Literature Review

Leadership

Leadership is central to define the role of performance in an organization. The role of leadership is integral to influence the behavior of employees. Carter, S. M., & Greer, C. R. (2013) defined the scope of leadership as it facilitates individuals to show collective efforts, in order to achieve the goals. The leadership process is key to consider the aim of an organization that may lead to bringing a change. According to Cheng, C., Cao, L., Zhong, H., He, Y., & Qian, J. (2019) the strategic leadership works for effective policymaking in an organization and it provides a positive linkage between performance and goals’ achievement. Leadership styles offer critical plans and directions that motivate people.

Leadership styles

Wart, M. V., &Suino, P. (2017) examined the scope of leadership in the form of its style is diverse. The author provided clarity of leadership style, as it is an approach that implements directions and motivates individuals. Leadership provides direction to followers by offering them specific positions to accomplish tasks and obligations. The leadership functions establish essential requirements to organize operations under different styles of leadership. Harris, A., Jones, M., & Baba, S. (2013) illustrated that transactional leadership shows interrelation in group leader and group members. It orients managerial leadership because it offers ways to manage the structure of the organization. Rittenhofer, I. (2019) discussed this style of leadership face three factors. The first is contingency based on specific requirements of tasks and roles. The second is active management to avoid mistakes but supervise performance. The third form is passive management. The style of leadership tends to intervene in the common mistakes happened in the business environment. The author realized that the business roles in the transactional style of leadership help leaders set expectations.

Essa, E. B., &Alattari, A. (2019) focused on transformational leadership which is a loyalty process to target missions. The style that changes the attitude of employees at work is a key element to orient employees towards innovation. The innovative performance is significant to consider in terms of an increase in efficiency and productivity. The transformative style of leadership emphasizes on the value judgment and some values. Magiera, A., &Religa, J. (2015) provided that the style also offers groups and individuals to be goal-oriented. The author further focused on different other styles such as the autocratic and democratic style of leadership. The autocratic is also an authoritative style that allows leaders to direct their followers to do positive. The democratic style of leadership undertakes more employees into action to get involved in the decision-making process as it leaves them to follow the authority of the leader.

Alloubani, A., &Akhu-Zaheya, L. (2018) described the leadership styles and theories and how they work to increase the performance of an organization. Under the employee’s perspective, the authoritative leadership designs their future, in terms of directing them to get goals. The leaders through these styles of leadership work effectively because they dominate the organization and demand innovation. Due to styles of leadership, creativity, passion, and commitment come at the front. Bush, P. M. (2013) described the techniques that determine appropriate leadership for an organization. It is based on the creativity and complexity of an organization that determines the scope of capacity building for followers. The autocratic leaders are also known as authoritative because they offer clear directions so deadlines are met effectively. According to Maniscalco, C. (2019), in an organization, leadership styles give rise to innovation and enhancement inefficiency. The difficulty that leaders face transforming the attitude of their followers is due to previously built values.

Kraljevic, Z. (2018) proposed a style of leadership in the innovatory platform is delegating. This category is central to allow followers to take part in essential decision-making activities. The leaders also provide critical tools to allocate resources that may resolve issues (Moss, G. 2019). The delegating style of leadership is also effective for followers in a situation when they feel depressed and anxious. This style of leadership is central to offer motivation, skills, and capacity. Banerjee, B., Ceri, S., &Leonardi, C. (2016) discussed innovation and its relationship with leadership in the context of different styles that improve the overall efficiency.

Anwar, R., &Qisthi, Y. (2017) analyzed that leader is a key to bring innovation in an organization because it holds innovative skills and expertise to make strong decisions as well as judgment. The situation of outcomes is based on an internal and external conducive environment for employees that not only supports creativity but also brings innovation. Goksoy, S. (2016) provided that an innovative leader is focused and determined to bring change and make attitudes of employees professional.

Importance of Leadership

The influence of leadership on organizational performance is viewed in terms of leadership management. This brings creativity into account and directs employees to attain innovative activities. Ebrahimi, P., Moosavi, S. M., &Chirani, E. (2016) directed a concept of leadership with that of creativity and process management. The author discussed that the scope of management is linked to performance and improvement. Leadership engages in the management-oriented landscape to motivate employees about positive efficiency. In an organizational context, leadership is viewed as a transformative element that recognizes improvement. Through environmental conditions and novelty of work, the leader and followers determine their engagement (Kibbe, M. R. 2019).

Norese, M. F. (2016) examined the leadership concept as an ability to improve and inspire the follower. The leadership provides a key position to fulfill the obligatory tasks. According to Esra, Alamayreh, M., Sweis, R. &Obeidat, Y. (2019), the split leadership functions provide structural support to the organization. The rapidly changing environment defines the need for organizational performance due to leader. An innovative leader helps generate a high reputation of the organization and motivates employees to work diligently. The innovative performance is influenced due to professional leadership attitude (Visser, W. (2017).  Akkaya, B. (2018) discussed the scope of innovation as the development of new products that design sophisticated processes and structures to create the value of the organization.

Niknamian, S. (2019) focused on the contribution of a leader in a versatile environment that can change the future of the organization. The effective role of a leader promotes in bringing productivity for the workplace and designs a successful climate. The innovation is strongly related to performance and the innovative leader tends to create a productive environment due to moderation effects. Matejun, M. (2017) illustrated that leadership plays a crucial role in the empowerment of individuals and organizations pursue this success by following the leader’s policy management (Dopfer, M. 2018). The leadership styles vary from one organization to another, yet they focus on positive outcomes and transform the employee’s attitudes to get success. Besides, leaders also influence prevailed climate, so it tends to develop strong leadership by exchanging information (Brooker, P., & Hayward, M. 2018).

Organization’s Performance

The performance of organization is related to innovative aspects of strategy. Some factors contribute to defining individual personalities in effective strategic managers by their subordinates(Amanchukwu et al., 2015). Different studies have reported that coworker assessment resulted in effective and strategic managers. The elements that bring organizational effectiveness are consistency, strategic thinking, and competitive attitude. Shah, S. M. M., Mirani, M. A., Memon, P. A., & Bhutto, N. A. (2016) discussed strategic leadership as an effort that significantly contributes to managerial effectiveness.

The strategic leadership supports organizational leadership, in terms of bringing improvement and modifying its structure. Carnall, C., & Roebuck, C. (2015) highlighted the forms of leadership that inspire and support others with the achievement of the vision. Strategic leadership engages organizational abilities and individuals’ characteristics into a signified model.  Hadley, S. (2018) focused that strategic leaders set directions by no managing current direction for the organization but also translate the moral values. They translate strategy in action and determine intervention points for an organization that can improve performance (Sethibe, T. and Steyn, R. 2015). Moreover, they also develop strategic capabilities. Clarke, S. (2012) mentioned that the strategy refers to a broad activity that translates into short term planning of operations, which undertakes the values system.

Importace of Organization’s Performance in Firms

The performance of organization is related to the strategic leadership. The conceptual skills that modify the attitude of followers are based on the vision and mission of the leader. The strategic directions align employees’ attitudes toward learning. It generates a learning-centered relationship. The strategy-making process led by a leader is based on strategic thinking. Harlianto, J. R., &Afandy, D. (2018) focused on different perspectives of strategy that undertake positive skills, organizational commitment, and political will.

Kapal, M. (2015) articulated strategy of leadership into three actions, build, create and define. The concept of the build is related to images and experiences. To create is to set dialogue and conversations that are due to mental cognitive understanding. The element define is about the strategic perspective that provides a formal plan. Matejun, M. (2017) illustrated that innovative potential can be developed by defining desired outcomes as it helps to clear a strategic architecture for the organization. Thakur, R., Angriawan, A., &Summey, J. H. (2016) discussed technical opinion leadership that brings personal characteristics. The structural significance of innovative leadership formulates the way to bring improvement in performance and creativity (Shahin, A., Naftchali, J.S. and Pool, J.K., 2014).

Yıldız, S., Baştürk, F., &Boz, I. T. (2014) presented the effect of leadership in the performance of the business. The innovative aspect is central to foresee the latest development and technological improvement. Because of strategic decision making, the participation of the leader and their knowledge holds a central position. It tends to portray the strategic reforms required for long term decision making. The strategic motivation leads to the improvement in commitment (Slimane, M. 2015). The author discussed trust-building capabilities that formulate the psychological contract. The motivational staff under strategic policymaking builds value for commitment and develops long term ambition that in turn improves the participation of teams. Kock, A., Gemünden, H. G., Salomo, S., & Schultz, C. (2013) explored the innovative scope of improvement when applied in any organization. It is valued that technological innovation is possible due to strategic leadership that results in the commercial success of an organization.

Leadership and Performance

The innovation is to bring new ideas and generate positivity with the help of skills and beliefs. The business performance and leadership are interrelated since they alter employees’ performance and engage them into productive ventures (Liu, S., Hu, J., Li, Y., Wang, Z., & Lin, X. 2014). The study about innovation and leadership by Walumbwa, F. O., &Wernsing, T. (2012) claimed that styles of leadership shed positive influence to bring innovation in all the work forums, for instance, it can be eCommerce, modern technology, and commercial product development. The transformative leadership, business performance, innovation, and commitment are key variables that meaningfully yield functionality. The leadership and innovation closely work on the notion of expertise, skills and acquired vision. A leader in this form tends to stay focused and provides a positive yet meaningful effect on business performance. Johannessen, J.-A., &Stokvik, H. (2018) Western, S. (2018) illustrated the aspects of innovative leadership and its impact on performance.

Komariah, A., Mawardi, M., &Abubakar, A. (2017) declared that opportunity is necessary to reshape the style of thinking and in the form of innovative leadership, it occurs. Leadership skills are a way to develop an innovative style that enhances efficiency. Perkins, K. M. (2019) claimed that innovative ideas at the workplace are significant to formulate positive attitudes. It welcomes all the necessary changes in the organization and offers additional solutions. Being adept at assaulted assumption is specific and Hinić, D., Grubor, J., &Brulić, L. (2016) put forward that innovation is a key in leadership aspects.

Conclusion

Scott, P. (2017) mentioned that focusing the latest and important trends are integral to bring development and spread information for employees. Innovative leaders think proactively, so they foster on brilliant suggestions regarding innovation in performance. Rao, M. (2017) provided that creativity is apparent from preparation, discipline, and routine made by leaders. Rosenberg, D. A., & Laver, H. S. (2017) clarified that innovative characteristics are integral to make up the future viability. These ways are related to innovative systems to tackle unpredictable circumstances.

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Pages:13

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

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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.

Aziz, R. A. (2013). The Effect of Leadership Styles on the Business Performance. International Journal of Economics, Business and Management Studies, 42-52.

Bhatti, A. (2019). Mediating effect of innovative culture and organizational learning between leadership styles at third-order and organizational performance in Malaysian SMEs. Journal of Global Entrepreneurship Research vol.9, 36.

Chaudhry, N. I. (2019). Mediating effect of innovative culture and organizational learning between leadership styles at third-order and organizational performance in Malaysian SMEs. Journal of Global Entrepreneurship Research, vol.36, 44.

Chen, Y. (2018). Is transformational leadership always good for employee task performance? Examining curvilinear and moderated relationships. Frontiers of Business Research in China, 800-900.

Chorng‐Shyong. (2013). Information technology capability‐enabled performance, future performance, and value. Industrial Management & Data Systems, Volume: 113 , 500.

Feng, C. H. (2016). A multilevel study of transformational leadership, dual organizational change and innovative behavior in groups. Journal of Organizational Change Management, 855-877.

Gaviria-Rivera, J. I. (2019). Transformational Leadership, Organizational Climate and Job Satisfaction in Work Teams. European Research Studies Journal, 68-82.

Ghasabeh, M. S. (2017). Transformational Leadership: Building an Effective Culture to Manage Organisational Knowledge. The Journal of Values-Based Leadership, vol. 10, 10.

Gutiérrez, L. (2012). Transformational leadership influence on organizational performance through organizational learning and innovation. Journal of Business Reserach, vol.65, 1040-1050.

Hambrick. (2007). Upper Echelons Theory—An Update. Academy of Management Review, 334–43.

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Introduction

The purpose of this literature review is to identify the impact of ethical leadership on the organization. Ethical leadership is important to know about personal ethics and integrity and implementing it in real life. The paper will discuss different categories of leaders. Good leaders promote ethics in multiple organizational settings to lead exemplary attitudes (Belschak, Den Hartog and De Hoogh, 2018). The individual decision making power at the workplace is influenced by others’ expectations, which in turn, are established, enforced, and nurtured by the organization’s leadership (Collier and Esteban, 2000). Ethically positive leaders promote productive employees’ behavior. Any failure to bring ethical leadership in an organization makes leaders responsible for the decline in output (Alshammari, N. Almutairi, and Fahad Thuwaini, 2015). The ethical leadership has a strong impact on the organization’s environment, but it is important to differentiate between ethical leaders and leadership, which is ethical.

Objective

The main objective of this paper is to find out the impact of ethical leadership on the organization. Different organizations have different kind of managerial style, which is impacted by ethical leaders. The scope of ethical leaders is different and categorized into transformational and authoritative styles. Ethical leadership, in its essence, tends to aid the organization’s atmosphere through the root level, thereby improves performance (Ghahroodi, Tan Sri Mohd Ghazali and Ghorban, 2013).  This paper will highlight the key perception and theories that are necessary to discuss ethical leadership. The objective will focus on the appropriate ethical leadership that can enhance the efficacy of the organizations. The objective will address the differentiation of ethical leader and ethical leadership style.

Research Problem

Current literature about ethical leadership discusses the significance of ethical leaders to boost the performance of employees. The problem explored in this paper will deal with the impact of ethical leadership in a constructive way for employees and promote the overall productivity of employees. This aspect will break down in detail with the help of scholarly studies to get evidence. Ethical leadership affects employees, but the clear process is not discussed in detail. However, different studies have highlighted particular segments of ethical leadership (Alshammari, N. Almutairi, and Fahad Thuwaini, 2015). The research problem deals with the positive behavior of leaders in ethical considerations that promote the efficacy of the organization. A dynamic situation will be focused with the help of theories and leadership approaches that will be in accordance with the previous subject matter. Ethical management is an essential factor for today’s organizations because it attracts financial and human resources in the best form (Benevene et al., 2018). The core concept in ethical leadership is aligned to address the ethical leaders’ approach, which streamlines working practices, sharing of ideas, and constructive approach towards employees (Khan, Ahmad, and Ilyas, 2018).

Rationale

The rationale of the study revolves around addressing core aspects of ethical leadership, prevailed in multiple organizations under the realm of globalization. The constructive patterns followed by this study will bridge the gap between the ethical and unethical styles of leadership, thereby reflect a considerable discussion. Studies have presented that the ethical style of leadership offers cohesion of organization, but a body of literature focused more on workforce style, i.e., ethical workers. The leader-employee relationship offers a constructive understanding of prevailing work-related practices; therefore, ethical leadership is responsible for the modification of employee’s behavior (Khuong and Dung, 2015). Recent qualitative studies in a similar area offered an opportunity to discuss future implications of ethical leadership by addressing its impact on employees. Chughtai (2015) pointed out that leadership practices are aligned on a psychological basis. Many quantitative approaches have highlighted the significance of ethical leaders for organizations, but quantitative studies offer a limited analysis of these theories. Benevene et al. (2018) argued that leadership could be a process of influencing others’ behavior and actions, in terms of social actions, and thinking process, which does not overall depicts the picture of the organization.

Belschak, Den Hartog, and De Hoogh (2018) discussed the scope of leadership theories through an iterative process of data collection, analysis, and coding, but this process only discuss some aspects of the scenario, and for instance, the analysis is limited and based on certain variables used. This research study involves academic and professional studies by incorporating their viewpoints about ethical leadership. The contribution of this study will be significant when analyzed on broader perspectives, offering a clear understanding of ethical leadership by addressing simpler variables. The contributions by authors in previous studies in the field of ethical leadership will be discussed through a reflective approach. The leadership theories generate new variables and discuss the relationship that benefits the whole organization. The expected outcome of this study is to find out ethical leaders’ influence on the overall wellbeing of organizations with the help of key variables, such as accountability, fairness, etc. It has been seen that organizational platforms benefit employees in their ethical approaches when implemented at workplaces (Collier and Esteban, 2000). Additionally, organizational influence is maintained only when ethical leadership engages in consistent behavior and tailoring employees’ needs.  The structural significance of ethical approaches is seen through training and employee development practices. This study has an advanced pattern of the discussion by engaging various theories advancements, so it urges to analyze key perspectives of ethics (Rahimi, Bohlooli and Eskandarzadeh, 2019). It has also included prior research in a similar area to make a sound foundation and offers rich detail to develop cohesion analysis.

Literature Review

Ethical Leadership

The beliefs, values, and principles about wrong and right characterize the appropriateness of behavior. This behavior puts influence on the employees to attain their organizational goals (Alshammari, N. Almutairi, and Fahad Thuwaini, 2015). Ethical leadership is defined in the form of a process that influences workers in positive and negative values and beliefs. Studies on ethical leadership tend to portray the key characteristics of ethical behavior by taking into account the morale of employees. The need to discuss ethical leadership in organizations is significant in finding out the competitive nature of the marketplace. The global impact of the organization on employees appears in the form of ethics, integrity, and ethical concerns. (Belschak, Den Hartog, and De Hoogh (2018) discussed the scope of influence that the organizational platform sees in relation to ethics. The study has presented evidence in Machiavellian employees and their work behavior. Authors focused on the ethical behaviors’ principles that are existent in the workplace to motivate the ethical attitude of employees. The ethical leadership shadows a key tendency to influence the performance of the organization. However, any negative influence leads to deception, misconception, misplaced localities, and inconsistent behavior by employees (Collier and Esteban, 2000).

Dion (2012) illustrated the process in which leadership influences organizations, thereby impacts individuals. Theoretical reasons for this issue are leadership theories that impact behaviors of managers, such as ethical leadership theories constituting traits. The leadership process can occur in one of the two ways, i.e., transactional and transformational. The transformational way mainly characterizes the way of vision and informs the mission of the organization. It also sets the foundation of strategies of the organization, its procedures, and policies. The transformation leader tends to focus on the techniques that help empower its workers so as to enhance their self-efficacy. Chughtai (2015) discussed a similar context in the form of norms and attitudes that makes up the vision of a leader. Ethical leadership is thus associated with a plethora of moral attributes such as integrity, honesty, reliability, and conscientiousness. It further can be extended to respect, trustworthiness, and modesty. The transactional leadership explains about the practicality, resistance to change, constrained thinking and extrinsic motivation.

Fulmer (2004) examined the concept of ethical leadership in a constructive way to demonstrate the appropriate conduct through building interpersonal relationships. The normative aspects of ethical theory development allow followers to improve their way of communication and decision making power. The conceptualizing of ethical leadership in terms of Benevene et al. (2018) is all about addressing a key matrix that comprised of unethical leadership. This matrix constitutes a weak morality of a manager and a strong morality of a manager. The ethically silent or neutral leadership is all setting the dimensions of equality and fairness at the workplace so as to promote equality of gender within the organization. The moral person portrays good skills, ethical conditions, and is always trustworthy. He/she concerns employees’ welfare, and these actions are apparent from his attitude. The scope of discussion is extensive by undertaking ethical standards that moral managers seek and communicate (Sharma, Agrawal, and Khandelwal, 2019).      

Ethical Leaders

Ghahroodi, Tan Sri Mohd Ghazali, and Ghorban (2013) mentioned the goodness of a good leader, in the form of depicting ethics. A good leader exhibits care, strong concern about ideas that deserve prudence, and openness to show leadership traits. The ethical leaders are positioned at the center of an organization; thereby focus on the traditional attributes like trustworthiness, integrity, and honesty. Moreover, ethical conduct is applicable to ethical standards. The ethical leader tends to stick morality and shows consistent behavior. The authors analyzed six key attributes regarding ethical leaders exercising ethical leadership, such as ethical awareness, integrity, community orientation, and encouraging, motivating, and ethical accountability. These characteristics of ethical leadership show the embodiment and articulation of the leaders’ values in an organization. The imaginative performance can be seen from the values and support the leader offers to the organization. 

Khan, Ahmad, and Ilyas (2018) illustrated the ethical leaders’ attributes reflecting from their actions, for instance, the embodiment of values and purposes for organizations. The leader focuses on the success of the organization, rather than focusing on personal ego. The leader also finds out the best practices to develop in the organization. He creates productive discussions and engages employees in a healthy learning environment. The leader also makes imaginative perception and tough calls to bring societal legitimacy. The support of the ethical leader is enormous for the organization. Khuong and Dung (2015) mentioned a similar structure of ethical leaders in the sense of ethical lens. The leader uses a productive approach by focusing on long term implications of its key organizational strategies and decisions. The focus of the study is to highlight ethical conduct and actions by an ethical leader. Such a leader develops key considerations about the significances of moral decisions by acting as a role model. The ethical leader offers significant support and training to the employees and makes them different from common workplaces. The core attributes of ethical leaders are different from all the common managers as they are sensitive to the employees’ interests.  Different managerial styles tend to highlight the structure of leadership, for instance, servant managerial style, autocratic, democratic and visionary. All of these managerial styles portray the prevalence of leadership skills and characteristics in different way.

Ethical Leadership and Organizations

Employees are the core aspects of any organization, who work to accomplish key goals and purposes of the workplace. Studies have discussed the role of ethical leaders that engage employees so that their satisfaction is increased. Nikpour (2017) mentioned the role of ethical leaders to acquire employees’ satisfaction. Ethical leadership plays a significant role in maintaining employees’ outcomes and organizational culture. The study has described how ethical leadership is useful to get the effectiveness and willingness of employees to work. It not only increases employees’ performance but makes an atmosphere to generate the desire to work, thereby flourishing working engagement patterns. Ethical leadership is associated with the positives structure of employees’ performance and their intrinsic engagement. Intrinsic motivation suggests their involvement by valuing tasks and responsibilities. It also describes ethical commitment that has a positive impact on the autonomy of job descriptions (Yang, Pu, and Guan, 2019).  Ethical leadership has a tendency to view the manager’s performance and the employee’s good moral image.   

Rahimi, Bohlooli, and Eskandarzadeh (2019) portrayed the impact of ethical leadership on the organization in terms of managing work-related stress. The authors define the perceived environmental demand and its relationship with the ability of employees to cope up with demand. The study provides dimensions of occupational aspects and their relation to success. For instance, work-related stress can increase depression physical and behavioral issues for employees. It is also a significant cause of sickness, absenteeism, and low productivity. The work-related stress is responsible for high turnover, possible human error, and increased incidents at the workplace (Çelik, Dedeoğlu, And İnanir, 2015). The pressure is related to turnover and has been studied in different articles. According to past studies, the factor of turnover creates tension, which makes employees quit from the overburdened atmosphere. The causal modeling is investigated by the authors to find that stress predicts high turnover rates in the organization.  

Sharma, Agrawal, and Khandelwal (2019) examined the organizational commitment by understanding the ethical conduct and behavior of leaders. The scope of attachment is illustrating the critical concepts of virtue in practices that are necessary to increase compliance of employees with organizational laws and rules. In most of the cases, it is observed that employees are less likely to follow leaders when they are dishonest. The authors found that the impact of trust is essential to increase long term accomplishment for the organization. 

Yang, Pu, and Guan (2019) highlighted the role of distinctive ethical leadership in improving the way to organizational value. The ethical leaders epitomize a compelling and moral narrative to organizational commitment. The challengeable business tasks are oriented to get personal satisfaction while in a society; the tendency of public display highlights the ethical concerns. The role of chief executive in an organization is seen from ethical business leadership that can benefit the whole society. The culture offers critical aspects of ethical implementation at the workplace because it not only necessitates the equality basis in the organization but also values the distinctive approach of ethical leaders. On account of business leadership, ethics develop a decisive dimensional role for society. It offers a tendency to focus on the empowerment and encouragement of employees. Organizational success is based on ethical decision making power of management because only a moral leader can highlight the role of productivity.      

Business entities govern the scope of accountability and fair value (Çelik, Dedeoğlu, and İnanir, 2015). This situation sets some expectations from employees and makes leaders accountable for producing a productive behavioral relationship with stakeholders. The study has discussed that ethical leaders correspond to the consistent behavior of employees in the workplace. For instance, in the organizational workplace, the quality of a leaders’ action can be identified from its followers’ interaction. The conditions of leaders play a significant role in expressing the mission and vision of the organization, as it lays the foundations of policies, procedures, and strategies. Leaders use specific techniques and strategies to improve workers’ abilities and empower them (Benevene, P., Dal Corso, L., De Carlo, A., Falco, A., Carluccio, F. and Vecina, M 2018). This helps to maintain their level of sufficiency, in accordance with the norms and beliefs.

Alshammari, N. Almutairi, and Fahad Thuwaini (2015) witnessed some critical elements of ethical leadership with a strong influence on organizations. The knowledge of ethics and leadership builds concepts and understands the facts of the organization. The practices of ethical leadership at a workplace organize staff by enforcing them for collective action. It also allows learners to focus on their responsibilities to develop an impressive outcome. For the more abundant sake of organization, ethical leaders create opportunities and build interaction with other leaders to demonstrate courage. In the learner’s point of view, ethical consideration about enhanced experience reflects the foundational approach for integrity, loyalty, and positive services. 

Belschak, Den Hartog, and De Hoogh (2018) discussed the scope of ethical leadership in relation to the organization. The study offers an understanding of the wholesome of employees’ activities, which are influenced by a common good. The authors observed that ethical leadership is not a phenomenon that is observed theoretically, but it explains the structure of the workplace and lead the foundation of critical behaviors. The qualities of a leader can play a decisive role for employees when they are inbuilt through transformational leadership. The impact of ethical leadership on the organization is significant when visualized in the form of employees’ involvement. With trustworthy and reliable conduct development among employees, ethical leaders can transform the traditional path of growth for the organization. 

Benevene et al. (2018) presented a view explaining the critical aspects of leadership with its overall impact on the organization. Ethical leadership is considered significant when idealized in terms of morality and building ethics in workers. The behavior of employees is necessarily affected when a moral leader drives them. The scope of leadership is wide to alter organizational goals, directions, dimensions, and achievements. It transforms corporate objectives by replacing them with coherent and consistent workflow patterns, thereby increases the chances to work in long term projects. The ethical leaders drive organizations into a positive and optimistic horizon, thus improve the development of responsible employees.

Appropriate ethical leadership, which necessitates ethics and morality at workplace, is necessary to maintain standards of the organization. The reviewed scholarly studies have presented various normative and specific opinions about ethical leadership, its characteristics and impact on organizational behavior. It is concluded that efficiency of an organization is guaranteed when ethical leadership takes the charge and it transforms the behavioral patterns of employees.    

Two main problems during conducting of research were the analysis of scholarly studies when I narrowed down to evaluate the impact of ethical leadership on organization and I also found difficulties in peer reviewed studies’ analysis because they were too professional for me. The weakness of this paper is the inclusion of limited studies because the topic is vast and extensive discussion is required for it. The potential limitation of the paper is its narrow scope that cannot considerably talk about the nature of ethical leadership and its prevalence in the workplace.

References

Alshammari, A., N. Almutairi, N. and Fahad Thuwaini, S. (2015). Ethical Leadership: The Effect on Employees. International Journal of Business and Management, 10(3).

Belschak, F., Den Hartog, D. and De Hoogh, A. (2018). Angels and Demons: The Effect of Ethical Leadership on Machiavellian Employees’ Work Behaviors. Frontiers in Psychology, 9.

Benevene, P., Dal Corso, L., De Carlo, A., Falco, A., Carluccio, F. and Vecina, M. (2018). Ethical Leadership as Antecedent of Job Satisfaction, Affective Organizational Commitment and Intention to Stay Among Volunteers of Non-profit Organizations. Frontiers in Psychology, 9.

ÇELİK, S., DEDEOĞLU, B. and İNANIR, A. (2015). Relationship Between Ethical Leadership, Organizational Commitment and Job Satisfaction at Hotel Organizations. Ege Akademik Bakis (Ege Academic Review), 15(1), pp.53-53.

Chughtai, A. (2015). Creating safer workplaces: The role of ethical leadership. Safety Science, 73, pp.92-98.

Collier, J. and Esteban, R. (2000). Systemic leadership: ethical and effective. Leadership & Organization Development Journal, 21(4), pp.207-215.

Dion, M. (2012). Are ethical theories relevant for ethical leadership?. Leadership & Organization Development Journal, 33(1), pp.4-24.

Fulmer, R. (2004). The Challenge of Ethical Leadership. Organizational Dynamics, 33(3), pp.307-317.

Ghahroodi, H., Tan Sri Mohd Ghazali, M. and Ghorban, Z. (2013). Examining Ethical Leadership and Its Impacts on the Followers’ Behavioral Outcomes. Asian Social Science, 9(3).

Khan, N., Ahmad, I. and Ilyas, M. (2018). Impact of Ethical Leadership on Organizational Safety Performance: The Mediating Role of Safety Culture and Safety Consciousness. Ethics & Behavior, 28(8), pp.628-643.

Khuong, M. and Dung, D. (2015). The Effect of Ethical Leadership and Organizational Justice on Employee Engagement — The Mediating Role of Employee Trust. International Journal of Trade, Economics and Finance, 6(4), pp.235-240.

Nikpour, A. (2017). The impact of organizational culture on organizational performance: The mediating role of employee’s organizational commitment. International Journal of Organizational Leadership, 6(1), pp.65-72.

Rahimi, G., Bohlooli, N. and Eskandarzadeh, T. (2019). The effect of development of ethical leadership on organizational adaptability capacity, education and training organization- case study: ILKHCHI city of Iran. Estação Científica (UNIFAP), 8(3), p.89.

Sharma, A., Agrawal, R. and Khandelwal, U. (2019). Developing ethical leadership for business organizations. Leadership & Organization Development Journal, 40(6), pp.712-734.

Yang, J., Pu, B. and Guan, Z. (2019). Entrepreneurial Leadership and Turnover Intention in Startups: Mediating Roles of Employees’ Job Embeddedness, Job Satisfaction and Affective Commitment. Sustainability, 11(4), p.1101.

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Aesthetic control and Regulations

Andrews points out that design was previously judged based on aesthetic quality; however, recently, the efficiency of the design has been given the authenticity of meaningful criteria. Aesthetic control by the planning authorities has been widely criticized for being emotive and to some extent, imprecise. This is because the appeal of other inputs such as geography, sociology, and economics happens to be higher than the external appearance of the design (Andrews, 1992). Aesthetic control and regulations must take into account practical considerations such as suitability, the practicality of location, ease of use, a mix of space, context, functional layout, and access.

Jones states that architectural design happens to be a social process as well as a communicative action that responds to the political, social as well as cultural instrumental ends. Design review practices and control are practically and institutionally constrained, which means that the design regulations are subject to hegemonic control as well as subversion or resistance by alternative viewpoints. Thus in a built environment, conformance to specific images and attitudes is often sought over.

Design of Public Houses

Nagy states that the design of the public houses did not accommodate the customary practices of the Qataris because domestic activities which were customarily conducted were faced with immense difficulty to perform because of the closed interactive area. Many of the original occupants complained about the reduced outdoor activity space that the design of the houses provided. This is because the design of a self-contained house near the center of the property could not be changed to add accommodations in size as well as for the needs of the family. The most common criticism, states Nagy, of the public houses, is that they hinder movement, which can be contributed to the design of the house. Furthermore, the plans of the open houses have a lack of provision for majlis structure. The building regulations that require the homes to be set back from the line of the property make houses that have a central yard seem less efficient in the use of the plot.  The regulations state that the homes should be placed on the neighboring plots, which means that residents can have a full view of the garden and house of the neighbor, which is culturally inappropriate for Qataris. Shah shares the same views regarding the use of space as Nagy as he states that architecture impacts social interaction in the sense of personal space as well as territoriality. Thus the Qataris complaining about the lack of space for performing activities and lack of privacy due to house design means the design does not meet the privacy needs. The plan that buildings possess can control as well as dominate people. Shah states that the way traffic can be controlled with speed bumps to slow down the drivers, structures can also influence the socio-cultural traditions and personal identity of individuals (Shah, 2007).

The customary architectural design of the houses allocated to middle-income Qatari citizens before the 1960s regulations had wall enclosing within the living and sleeping structures along with the ancillary buildings such as the privies and kitchens were catered to be oriented toward being accustomed to the day to day activities. However, the public houses granted by the government in the late 1970s and early 1960s were small and self-contained, which hindered the social and cultural practices of the Qataris. The residents had to, in turn, transform their living spaces to suit their needs, and this architectural transformation of the houses indicates that the Qataris engage in a different form of social interaction with the diverse social sphere of Doha.


Municipalities

 that adopt architectural design controls establish various review boards that decide on the design of the structure. The review board is mainly responsible for maintaining an architectural plan that prevents owners from adopting house designs that are not concurrent with the architectural design goals. The proposals to change the design of the house must undergo the architectural review board that includes checking the property value. Property value check involves checking whether the design of one building might depreciate the property values of the adjacent properties throughout the community or not. Furthermore, the construction of buildings should be stopped on the grounds of inappropriateness and dissimilarity. This means that a building that might be incongruous with the other buildings in its surrounding is not suitable.

Recently, there have been several municipalities that have adopted a different range of ordinances for residential homes as well as for architectural controls. These municipalities have expressed fears of uniformity, which is done excessively, and have claimed that the rights of the property owners in terms of renovating homes for aesthetical values must be protected. Some of the ordinances have even indicated which housing styles are permitted that reflect their desire to preserve the existing community character (Rubin, 1975). The ordinance has the authority to establish community architectural controls for private homeowners. Rubin states that this form of power of regulation permits them to enable acts, which in turn allow the municipalities for zoning ordinances. State zoning enabling acts present in the regulations contain authorization for management of appearances and aesthetics, which municipalities usually use for enacting architectural controls for the general welfare of the public.

Housing Policy in Qatar

The very initial phase of housing policy in Qatar was initiated in 1964, which included the provision of homes to the unemployed, disabled, and elderly. The houses offered to the Qataris in the late 1960s to the early 1970s by the state were unfamiliar in their design as most of the homes required adjustments in terms of the use of the house. Nagy states that not only were the Qataris relocating to the city often finding themselves surrounded by neighbors that were unfamiliar but also found apartments to be adjustable to use because of their design (Nagy, 1998).

 

 

References

ANDREWS, K. D., 1992. The Aesthetic Control of Development. JSTOR, Issue 19, pp. 32-39.

Jones, R. A., 2001. DESIGN COMMUNICATION AND AESTHETIC CONTROL: ARCHITECTS, PLANNERS, ANDDESIGN REVIEW. Journal of Architectural and Planning Research, 18(1), pp. 23-38.

Nagy, S., 1998. Social diversity and changes in the form and appearance of the Qatari house. Visual Anthropology, 10(4), pp. 281-304.

Rubin, B. A., 1975. Architecture, Aesthetic Zoning, and the First Amendment. Stanford Law Review,, 28(1), pp. 179-201.

Shah, R. C., 2007. HOW ARCHITECTURE REGULATES. Journal of Architectural and Planning Research,, 24(4), p. 350=359.

 

 

 

 

 

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