December 19, 2018 in Analysis
The Role of Leadership in Shaping Organizational Culture

Leadership in business refers to the ability to motivate a certain group of people, such as workers, towards achieving the same goal (Abrhiem, 2012). The main objectives of any business are to maximize profits, minimize cost of production and also win the largest market share. Essentiality of good leadership was determined upon examination of two firms. One firm employed a good leadership method, while the other firm failed to use a good leadership scheme. Research showed that the firm with good leadership showed high results in terms of performance and output level. From there, it was concluded that good leadership is essential in every business activities. It is, therefore, vital for students taking business as their career subject to understand in depth the qualities of a good business person in order to work efficiently in the business organizations (Ayman & Korabik, 2010). The qualities of a good leader are described below.

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First and foremost, a good leader should be a good decision maker. As noted by American Psychological Association (2010), leaders should take part in every decision made in the firm and should always be ready to face the consequences that would follow. In cases where it is necessary to define whether to employ more workers or to reduce the number of employees, the leader should not need to consult any other minor worker. Instead, he has to decide it himself after consideration of the consequences of employing more workers and realizing if more workers employed would increase the level of output produced. The leaders should also consider whether reducing the number of worker would reduce expenses and retain the same level of output.

Secondly, a good leader should always be ready to take risks (Balthazard, Waldman & Warren, 2009). For every business to run successfully, it is required to take risks in investments. For example, a good leader should always give space for use of new methods in production. The new methods of production might lower the its level but when the new method of production favors the company, the firm would increase its yields and would be able to meet its targets. A good leader should also allow employees to perform different researches. Such researches will help generate different ideas, chose the best of them and impact the firm positively. Research leads to the new tactics of operation, thus reducing the costs of production. When the costs of production are lowered, profit margins expand instead (Eagly & Lau, 2010).

A good leader should always be ready to motivate his employees. A leader should ensure that improvement of any project that was caused by an employee is funded as long as the project is favorable for the firm. When the leader funds such projects, it will motivate other worker to generate ideas which can be beneficial to the firm. A leader should always be ready to let his workers cooperate with workers from profitable firms. Such cooperation will be made possible through sending the workers to seminars. It will allow exchange of ideas and thus, the firm might adopt a new and cheaper way of manufacturing its products. A good leader should promote workers showing great results of their work to higher positions in the firm. Promotion of workers will enable them work harder, as well. When everyone works hard, there is an efficient production and thus, the firm receives higher income. Employees should also be compensated when they work extra hours by an increase in their salary. When their salaries are increased they will continue working extra hours. It will, in turn, increase the output levels, since the working hours would be extended without anyone feeling unsatisfied. A good leader should also motivate his employees by making sure they use company cars when attending any business tour. It will reduce transportation expenditures and encourage workers to make such tours more often for the benefit of the company (Ilies, Judge  & Wagner, 2006).

A good business leader should possess such qualities as open mind and trustworthiness. An open-minded leader will not cover any information from his employees. In case there is a problem of fund shortages, the leader should always be ready to communicate to the employees. He will be able to explain them that the company is experiencing shortages of funds and, therefore, every worker will experience a reduction of salary or some workers will be unemployed in order for other to enjoy their salaries (Karaszewski, 2010). Openness would reduce problems, such as workers’ strike. Strikes are always known to stop business operations, as well as cause more serious consequences. Workers may damage properties that would have a negative influence on a firm. When a leader is open-minded, he will win his people’s trust and workers would, in turn, be trustworthy too. Lack of trust between employees and a leader may result in situations when workers make up fake reasons to ask for leaves. Unnecessary leaves would lead to poor operation, since workers would not be working regularly. It will also result in conflicts between the leader and the workers at the point when the leader will deny the employees having unnecessary leaves. On the contrary, when workers are trusted, it will encourage the manager to send them to represent the company in different business conferences. 

A good leader should always ensure that his subordinates are working in a good environment. It implies that workers should be provided with proper housing and good transport for those who live far from the company. The safety of a worker should also be taken into consideration. Employees who work in factories should always be provided with overalls and also helmets to prevent them from any external damages. When workers are accorded safe working conditions, there would not be any incidence of workers looking for job with better working environment. In case the company does not consider the working environment of the employees, they may leave the job and the company might suffer from loosing a qualified worker. Consequently, it will be difficult and expensive for the company to replace him and train another specialist for the production process.

A good leader should also be a good manager of funds and time. A leader should always ensure that funds are allocated efficiently without any biasness. In other instances, a manager might be tempted to be bias and locate more funds to different projects due to ethical or gender biasness. When some projects lack appropriate attention and funding, it would lead to failure in their accomplishment, though they may be of great importance to the company. A good leader should not be selfish in questions of satisfy his personal needs at the first place. When a leader is too selfish, he will always award himself huge salaries that would, in turn, make the firm suffer from deficit cash. Lack of enough funds will force the leader not to pay or delay the salaries for the employees. When the salaries are delayed, workers loose motivation and work unwillingly. In such situation, a bad relationship between the leader and the workers is developed and it may lead to decreased yields and company collapse due to the improper management. The leader should also be disciplined and possess good time management skills. When a leader manages time, he would be able to make workers report to work on time and thus, ensure that the work is done efficiently. A leader should also show an example of time management by his own behavior (Northouse, 2013).

The way leaders solve problems plays a vital role is determining the level of the firm operation. A good leader should not be harsh to the employees and always be ready to listen to their problems. In cases where the workers demand for salary increment, a leader should gather the workers and make them understand why it is difficult to increase their salaries at a particular moment. If there is need for the salaries to be increased, they should be informed by how much it will be done. Polite solving of conflict will enable the leader have good relationship with his employees, which will result in the efficient work performance.

In every firm, the leader should always be ready to face any crisis that may be caused by the operation process. An example of a crisis is inflation. In cases of inflation, money supply is reduced thus, demand of good declines due to the insufficient cash circulating in the economy. When the money supply for people is minimal, the demand for products will decline correspondingly. The question that every leader would ask himself in a similar situation is how to ensure that the products are purchased and how should the firm retain its customers and make profits during inflation? It might be challenging to every leader that lacks skills to face such crisis thus, leading to the closure of the business. A good leader should increase channels of advertisement in order to make the products become differentiated. Advertisement will enable more people receive informed about the product. By using such method, the company would attract new customers that would replace the former loyal customers who withdrew from the business due to the inflation crisis. When the new customers replace the loyal customers, equilibrium is attained and the firm continues earning its initial profits. In other instances, it may be difficult to reach the number of new customers compared to the previous number of loyal customers that withdrew from the market. There is no way the firm will continue making profits unless it increases its prices. Increase in prices will reduce demand, since according to the law of demand, when prices increase, demand decreases and when prices are low, demand increases, correspondingly. It would, therefore, be challenging for the leader at such point. Leaders are, therefore, advised to merge with companies manufacturing essential products that a person cannot refuse from using. When such two companies merge, there would be an agreement, whereby both products would be packed together and a high price charged. Income, in such case, will be shared according to the agreed terms.

Workers’ strike is also one of the phenomena that make every business paralyzed. As a result, strikes cause negative consequences for both the company and the workers. Workers may destroy company’s assets that will make the leader incur extra cost for replacing the assets. On the other hand, the workers who participated in strike may lose their jobs or be prosecuted for destroying the company’s assets. Leaders, therefore, require special skills in dealing with such scenarios. A good leader should always emulate dialogue in solving problems. It is known that most strikes that occur in businesses can be avoided. A good leader should always be ready to hear the grievances of the workers and be able to address them on time. Openness in business plays a vital role in every business operation. When a leader is open to the employees, they will feel safe to tell the manager about any issues affecting them. If it is the issue of salary increment, the leader should be ready to address the workers explaining why he will not be able to meet their urgent need at the particular moment. If the workers trust their manager, they will be ready to listen to his arguments. In such way, the issue of strike would be solved and the time wasted during strike would be utilized (Williams & Gordon, 2006).

Leaders can use their powers in order to promote a healthy organization culture. A good leader should create a gap between him and his employees. Other than being too open and too close to the workers, a leader should ensure that there are boundaries between him and the employees. Workers should not be let to come to job when they want but instead they should be aware of a leader figure that they must respect. When a leader uses his power to make orders of how work should be done and always notes workers who are low-qualified and unwilling to work, it will promote respect and help maintain the boundaries. The workers will, therefore, know that the leader is above them and they should respect him.

Leaders can promote ethics in healthy organizations by showing examples. In cases there is a need for employees to work extra hours, the leader should also be available during that time in order to effectively supervise the workers. In instances of salary reduction, the leader should ensure that his salary is also reduced so as not to make the workers feel that their rights are being violated. In cases of fieldwork, the leader should also engage himself in such kind of activity in order to provide a good working environment (Velsor & Leslie, 1995).

In summary, according to the discussion above and the researches conducted by various scholars, it is clear that good leadership is essential in operation of every business. Good leadership leads to an efficient working environment, thus ensuring the higher levels of output.


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