Effective leadership impact on organization success

A leader is anyone who uses interpersonal skill to influence others to accomplish specific goal. The functions of a leader are to achieve a consensus within the group about its goal, maintain a structure that facilitates accomplishing the goal, supply necessary information that helps to provide direction and clarification, and maintain group satisfaction, cohesion, and performance (Sullivan &Decker, 2010).Leadership is viewed as the process of guiding, teaching motivating and directing the activities of others towards attaining goals. It involves having the ability to influence others (Ellis&Hartley, 2005). The Leadership is the relationship between those who aspire to lead and those who choose to follow. Innovative leadership is needed in academic institution as the pressure to deliver high quality care. Yet, nursing academic leaders are often chosen for leadership position based solely on their performance in academic endeavours (Chen, Beck &Amose, 2005).

During times of dramatic organizational changes in health systems, nursing management is both challenging and difficult task. The style of the manager can be important for subordinate’s acceptance of change and in motivating them to achieve high quality of care. Leadership style in the sense of a manager’s way of influencing the subordinates and researches on leadership style is mostly based on a theory that there are specific behaviours, which together develop leadership style. New leadership behaviour has developed, more focused on change within the company (Sellgren, Ekvall&Tomson, 2006).The purpose of this study is to describe different leadership style and examine effective leader and discuss how a leader can develop effective leadership style and you should focus on how effective leadership impacts an organizations potential to succeed. Article for this paper collected from ebcohost research database, google scholar and from the books of leadership and management.

Different styles of leadership

A transformational leader may be defined as a leader who motivates followers to perform their full potential by influencing changes in the perceptions and providing in the sense of direction to the group. The group is encouraged to set aside personal interests for the good of the group. Group members are empowered and motivated and provide input to decision making and leaders and followers raise one another to higher level of performance (Ellis&Hartley2005).Relational leadership is viewed as s relational process designed to accomplish a common goal to benefit all. As with transformational leadership the leader is empowering and process oriented moving the group towards the goal (Ellis&Hartley,2005).Servant leadership theory in which the successful leaders as being able to influence others as a result of dedicating their life to serving others(Ellis&Harley,2005).

Transactional leadership is based on social exchange theory. In this style leaders are successful to the extent that they understand and meet the needs of followers and use incentives to enhance employees’ loyalty and performance. This style is aimed at maintaining equilibrium, by performing work according to the policy and procedures, maximising self interest and personal rewards, emphasising interpersonal dependence and routine performance (Sullivan &Decker, 2010).Quantum leadership is based on concept of chaos theory. In this frame work, employees become directly involved in decision making as equitable and accountable partners and managers assume more off an influential facilitative role rather than one of control(Sullivan &Decker, 2010). Charismatic leadership is based on personal qualities such as charm, persuasiveness, personal power, self confidence extraordinary ideas, and strong conviction. Few leaders possess genuine charisma. (Sullivan & Decker, 2010).

Shared leadership which is based on the empowerment principles of participative and transformational leadership Essential elements of shared leadership are relationship dialogues, partnership and understanding boundaries. The application of shared leadership assumes that well educated, highly professional, dedicated work force is comprised of many leaders (Sullivan & Decker, 2010).According to behaviour based theories, there are four styles of leadership the first one the autocratic leadership assumes that the leader exercise ultimate power in decision making and control rewards and punishments for the subordinates in confirming to their decision. The second one the democratic leadership assumes that individuals are motivated by internal drives and impulses, want active participation in decisions and want to get the task done, the leaders uses participation and majority rule in setting goals and working towards achievement (Sullivan & Decker, 2010).

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The laissez-faire leadership style also assumes that individual are motivated by internal drives and impulses and that may lead to left alone to make decision about how to complex the work, the leader provides no direction or fecilitation.The forth style is the bureaucratic leadership style. The bureaucrat leadership assumes that employees are motivated by external forces. This leader trusts neither followers nor self to make decision and therefore relies on organizational policies and rules to identify goals and direct work process (Sullivan & Decker, 2010).

How a leader can develop effective leadership style.

Effective leaders are those who acknowledge the importance of task oriented and relationship oriented action and to seek to provide structure and support for subordinates (Ellis&Hartley2005).In transactional leadership style followers agree about achieving the required goal and objectives in exchange for rewards or praise. Once goal is achieved rewards are provided. By contrast the transformational is visionary and charismatic resulting in motivated employees (Farag, Mcguinnes&Anthoy, 2008).The transformational organizational culture usually characterised by flexibility and creativity with emphasis on questioning policies, strategies, and method used, to acquire more effective organizational performance strongly associated with climates that restrict creativity and innovation, and they are able to create synergetic environment that enhance collaboration towards change.(Hendel, Fish & Galone,2005).

One studies conducted among CEOs and subordinate managers by Spinelli, the subordinate manager perceived more the leader as exhibiting transformational behaviour, the grater he or she reported exerting extra effort, expressed satisfaction with leader and believed leader to be more effective. The relationship between transformational leadership and the outcome factors were stronger and more positive than the transaction style and lasses- faire. Contingent rewards correlated less positively with the outcomes, management by exception and laissez faire correlated negatively by outcome factors. The contingent reward process produce only anticipated level of effort and standard performance. A limitation of transaction leadership style is that it offers little encouragement to exceed and achieve performance beyond the transactional contract. (Spinelli, 2006).Some scholars describes the transactional leaders as one who subordinate and controls, while transformational leaders sets direction and create opportunities for the professional development of individual health care team members. But some argue that the transactional leader is often self centred, leading via directive and mandates, while more transformational leader in an inclusive motivator, proactively solving problem that promote team effectiveness (Brien,Martin,Heyworth&Meyer,2008).

Moreover in transaction leadership the one of the main criticism is the lacking of vision for future and endorsing only first order changes which implicate on policy and procedure rather than organizational or cultural change. On the other hand transformational leader motivate and energize staff to pursue mutual goals share vision and secure an empowering culture, where personal value and reciprocated respect are fundamental principles. However to achieve this level the nurse manager may constantly familiarise themselves with legislative and policy document that impact upon health care delivery to ensure that they assumes realistic and attainable goal (Murphy, 2005).Transformational leadership may be associated with .job satisfaction and well being appears, at least partially, to be through the creation of working environment characterised by employees working environment by employees experiencing their work as a meaningful, having influence and being involved in their work. (Nielsen, Yarker, Brenner, Randall&Brog, 2008)

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A transformational leader is a courageous change agent who is skilled in managing situations of uncertainty. The effective transformational leader uses language to create within the individual follower a sense of competency and sense of self. When the leaders set forth high expectations followers are convinced that they are capable of accomplishing goal of moral and enduring purpose also through the effective communications that the followers are persuaded to make the differences to make an enduring change. The leader is crucial to this transformation but the essence of transformational leadership is that the followers do not become dependent on the leader, they instead become a leader. A more hierarchical, autocratic leadership style is not a trusted agent adequate for change. A group of followers disillusioned with unfair system of leadership is ripe for emergence of a transformational leader who will organise and empower them to move towards the necessary adaptation of autonomy (Kamm-Larew, Stanford, Green, Heacox&Hodge, 2008).

Another study conducted about leadership style of Finnish nursing managers, democratic leadership style was found as important, because it promoted employees commitment to work. This style gives the impression that the managers really want to hear employee’s thoughts and works as a team member. But autocratic leadership style was typical in work place where people had to react quickly and effectively to changing situations. It resembled commanding leadership style which decreases the autonomy of nurses. An autocratic leadership style prevents empowerment of nurses, because they do not have possibilities to participate in work planning (Vesterinen, Isola&Paasivaara, 2009). Autocratic and task oriented leadership styles require absolute obedience from followers, with an expectation of worker efficiency in order to accomplish group goals (Chang, 2008).

One study in UK regarding servant leadership principles, applied in the care of rural older adults utilizing a service leaning experience in the delivery of health and wellness, is a perfectly appropriate application of inter professional care. This study demonstrates the essential process of inter professional education by supporting the facilitated exchange of skills, knowledge and disposition between faculty and students, provider and client, theory and practice. Community based education which fosters a collaborative approach to care, improved communication, and valued expertise of team members benefits all, particularly a segment of population at elevated risk of disease and disability (Neil, Hayward, &Peterson, 2007).But another research conducted about servant leadership among doctors and nurses, nurses have a more positive self -perception of themselves as servant leaders than physician (Garber, Madigan, Click&Fitzpatrick, 2009).

How effective leadership impacts an organization’s potential to succeed

Effective leadership is seen as a potent source of management developed and sustained competitive advantage for organizational performance improvement .For instance transactional leadership help organizations achieve their current objectives more efficiently by linking job performance to valued reward and by ensuring employees have the resource needed to get the job done. Visionary leaders create a strategic vision of some future state, communicate that vision through framing and use of a metaphor, model of vision by acting consistently, and build commitment towards the vision. Some scholars suggest that visionary leadership will result in high level of cohesion, commitment, trust, motivation, and hence performance in the new organizational environment. (Jing &Avery, 2008).

Transformational leader achieve organizational goal by empowering staff that are committed to the same organizational goal (Farag et al 2008). But organizational Bureaucracy, hierarchy, authoritarian leadership and poor access to information were to found limit empowerment and leader to dissatisfaction, burnout and absenteeism. (Tomey, 2009). It might be important that rather than changing implementing wide range of organizational changes for a large number of employees, many studies suggest that training the supervisor might have similar impact. Training staff at managerial level might be more cost effective and easy to control than implementing wide ranging organizational change. (Nielsen et al, 2008).

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Moreover transformational leadership style foster healthy staff focused work places and positive work place management initiative such as shared organizational goal, learning opportunities, career development, reward schemes, autonomy, participation and empowerment strategies but poor leadership and management styles ,impatient ,defensive ,unsupportive leadership lack of supervision and guidance, control, and lack of recognitions of contribution have been identified as major stressors.( Tomey,2009).According to a study conducted among dentist about exploring leadership style , autocratic decision making process were associated with increased organizational ambiguity and higher degree of functional identity . Not surprisingly, dentist given the highest leadership ratings engaged staff members in participative decision making process, affording them the opportunity to learn about possible change and to offer input. (Chilcutt, 2009).

Transformational leaders rely on empathy to understand follower’s thoughts, feelings, and point of view. Leaders with empathetic qualities inspire greater depth of self -exploration in followers and the supportive interpersonal orientation increases followers’ positive perceptions about the leader, feelings, and job satisfaction. To bring about organizational change through higher performance, transformational leader must fully engage and connect with their followers. The key factors like evocations, framing, and mobilizations of emotions with a leader can change the organization through commitment. Emotional bonds are implicit in transformational leadership behaviours. Leader who responds empathetically to co-workers can improve organizational effectiveness. In addition transformational leaders change their organization by persuading followers to embrace positive vision and ideals. (Barbuto & Burbach, 2006).However, in general the effect of leadership on organizational performance has not been well studied. Some researchers criticised leadership studies for focussing excessively on subordinate relationship to the exclusion of several other function that leaders perform, and to the exclusion of organizational and environmental variables that are crucial to mediate the leadership-performance relationship (Jing &Avery, 2008).


In conclusion leadership is viewed as the process of guiding, teaching motivating and directing the activities of others towards attaining goal. It involves having abilities to influence others. Leadership often involves moving in to a position because of special abilities skills or attributes and may be formal or informal within the organization. It can be seen that there are different leadership styles mostly based on theory that there are specific behaviours which together developed as leadership styles. Each style has specific aim and goals and it effectiveness varies according to the situation, characteristics of the leader and the followers in which they function. It is evidenced that from above literature each leadership style has advantages and disadvantages and may used productively according to the situation. Majority of the studies suggest that, when comparing different leadership style, transformational leadership is better than other styles because of clear vision, capacity to empower the followers, empathy, autonomy, chances of career development and learning. Moreover leadership has crucial role in the success of the organizational potential and performance. Success can be achieved by training the staff at the managerial level may be cost effective and more beneficial rather than changing wide range of organizational change. Some researchers suggest that visionary leadership may help high level of performance in the new organizational environment. More researches and studies needed for the development of effective leadership style and its impact on organizational success.

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