Leadership In Profit And Non Profit Organizations

This document is premised on the thesis that organizational leadership is highly linked to the aspects of gender, organizational change, culture, ethical behaviors of the employees and leadership theories. Leadership styles are normally based on the various leadership theories applied by such organizations. Leaders within organizations are of varied types including democratic leaders, servant leaders and principle centered leader among others (Yuk1, 2009). Styles that leaders apply are of different styles which maybe laissez-faire, participatory, autocratic or even democratic. Situations and organizational life cycle highly determine the leadership style. Theories applied by organizations in their operations include group-man theory, great man theory, traits theory and situational theory among others.

Profit and Non-profit Organizations: leadership theories

Great man theory claims that organizational leaders are not made but they are born. Such great leaders normally arise when a great need arise within the organization (Northouse & Northouse, 2009). Lower class members have limited opportunities to lead within the firm set-up. When organization applies this theory, gender issues are never considered. Majority of the leaders include males only. People are assumed to be born with the leadership traits which are normally inherited. Organizations mainly base this application on psychological focus, involving individuals who poses’ inherited traits or characteristics.

Behavioral theory reveals that organizational leaders are made. Effective or successful leadership therefore is achieved on the basis which is learnable, definable behavior. Normally, this theory never seeks inborn character traits or capabilities. Individual behavior is observed and their association in leadership is related to their behavior and conducts within the organization set-up. Environment provide by this theory offers a better opportunity for leadership development (Yuk1, 2009).Participative leadership theory decision making improves understanding of issue s involved by individuals who must make organizational decisions. Generally, people seem committed to actions in which they have been involved in making relevant decision (Miner, 2005). Individuals within the organizations are more collaborative and less competitive when their work involves a common goal. Participative leaders do not make autocratic decisions but engages the participation of other individuals or stakeholders.

Situational theory reveals that the best action of a leader in an organization is dependent on a number of situational factors. When need for a decision is required within the business set-up, effective situational leaders never fall into a specific preferred style such as transformational or transactional approaches. Factors that influence situational decisions are such like capability or motivation of the followers. Similarly, followers and leaders relationship can serve another factor affecting the leader’s behavior or the followers (Covey, 2004). Perception of the leaders concerning the followers will impact what they do. Also, stress or mood swings can be a situation affecting a leader. Contingency theory suggests that organizational leaders’ abilities are contingent on several situational factors inclusive of behaviors or capabilities of followers or preferred style of the leaders. An effective leader’s style in a certain situation therefore may not be efficient to another. Implications of this are that an effective leader in a certain place and specific time maybe unsuccessful if transplanted to a different situation or when surrounding factors change.

Transactional theory claims that individuals are motivated by punishment or reward offered within the organizational operations. Social systems of an organization achieve the best owing to a clear command chain (Miner, 2005). Leaders under this theory work through creation of clear structure of what the subordinates require and on the basis of the rewards gained on following orders. Lastly, transformational leadership theory suggests that individuals follow an inspiring person. A leader within the context of this theory has vision and passion in achievement of great things where his leadership styles are applied. Goals are achieved through energy and enthusiasm.

Application of leadership theories in business

Profit and non-profit organizations have applied leadership theories in their daily operations. Contingency or situational theory has been applied in organizations to help and guide leaders on their management practices. Organizational leaders are thereby assisted in solving managerial problems. For example, contingency theory is applied where material variation exists during the production process. Application helps to break down the duties into vastly routine tasks. Managerial approach emphasizes efficiency elaborate procedures, high specialization degrees which control behavior. According to Covey (2004), tasks which are non-routine or changing apply approach of low job specialization, creativity or employee freedom in controlling their own behavior rather than reliance on procedures and rule. Organizational managers apply this theory in identifying which techniques within some specific situations can help best to contribute in achievement of the organizational goals. For example, authoritarian leadership in some circumstance will be best suited leadership style to internally motivate the organization employees.

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Classical management theory is applied in structuring of organizations so as to increase productivity and efficiency. Similarly, behavioral management theory has been used to provide knowledge on individual needs or motivations which are aimed at increasing productivity and improvement of the working environment. Systems theory on the other hand has been applied in identity of the context for organizational operations. Assistance is therefore accorded to the organizational managers in understanding the environments. Similarly, knowledge on how subsystems or parts of the business are interrelated is acquired. Management theory has been applied in specific tools or techniques useful in increasing managerial efficiency or effectiveness within the business set-up (Gill, 2006).

Contemporary leadership models: strengths and weaknesses

Leadership models have been associated with varied weaknesses and strengths within organizational operations. Strong leadership model entail leaders who are task oriented. In this case, leadership strength is revealed in excellence demonstrated on task orientation aspects. In this model, some leaders are visionary setting out lofty goals and frequently challenge people to accomplish those goals. However, there is always struggle to accomplish such goals due to their weakness in administration. Similarly, such models limitation is revealed in their resistant to change in environments since their concerns are more oriented on the risks the change will bring and effects it will have on people. Within the inspirational models, personable style of leadership is applied. Organizational leaders in this case gravitate to leading positions. Strength is evident within their temperament tools since they tend to be naturally born leaders. Also, they are good in relationship with people. However, the leaders in this context tend to be obnoxious and loud since their satisfaction comes in the attention they get from the followers, hence it causes discomfort among the followers (Klatt & Hiebert, 2001). Team leadership model (TLM) is the providers of the research and theoretical basis on what affect leadership development group and what it provides. Such a situation is particularly on team, group or organizational levels. Team leadership model has demonstrated its strength in its ability to develop high performance levels within thousands of organizations worldwide.TLM can be used by a leader who has been assigned to develop a team from scratch since it gives directions or guidance on team selection, design or organization systems which supports team work. However, team leadership model limitation is evident since more often than-not impacts are on senor executive and therefore smaller teams are disadvantaged and have limited chances.

Influence of power on leadership

Organizational leadership is often aimed at influencing other individuals, and possibly steer organizational growth. However, the aspect of leadership is not unidirectional. Powers assume the role of the engine that drives that ability to influence, either informally or under formal approach. Effective and successful organizational leadership can therefore only be attained through proper analysis of power relationship and processes of influence. Influence of power on leadership can be distinguished through the application of compliance, resistance or commitment. Generally, the understanding of influence is based on the effect of a single party who acts as the agent to acting as the target. Whether positional or personality based, leadership powers has the ability to influence the behaviors of the leaders or their attitudes within the organization’s set-up. Personal power can be acquired from legitimate power, which evolves from holding a formal post or position. Similarly, it can be acquired from reward power. Position power can control authority, rewards, punishments, ecological or information control. Similarly, personal power can rule over friendship, expertise, charisma or loyalty. Also, political power can control decision making processes, co-optation, coalitions or institutionalization. Power tactics to leadership can be rational persuasion, consultation, personal appeal, inspirational appeal, pressure and ingratiation, among others. Application of power in organizational leadership will create an emotional atmosphere which is conducive, performance standards will be highly set, and responsibility and initiative will be highly encouraged. Employee are tend to be motivated to achieve more if influenced under effective leadership depending on the type of power exercised by the management (Northouse & Northouse, 2009).

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Leadership significance in change management and initiation

Leaders are entrusted with the responsibility of weighing change complexity to the stakeholders. Similarly, organizational leaders must evaluate organization capability to bear the change before initiating the change. Whenever leaders initiate change, they must also have the ability to manage the risks thereby. Recommendations are that leaders should always adapt to missions of change, environmental forces or new requirements. Such adaptations will assist the organization to be competitive within the latest innovations or technology to enable it continues offering services of high quality to its clients. Normally, change is risky and difficult to successfully accomplish too. Leaders must align their strategies or process accordingly. Similarly, they need to develop skills required in their organization in navigation of the perilous organizational change course. An organizational leadership must identify external and internal factors that may limit the efforts for change. Within various levels of the organization, leaders are responsible in leading the change efforts. State of the business at the point of change will determine whether outside leadership will be more appropriate in organizational transformation. At the same time, there can be a choice to contract a private sector and entrust it with the coordination and synchronize skills or resources in implementation of the change process. Similarly the leaders can assume the change roles and managers must pass communications across all the organization staff to facilitate acceptance and support of the change process (Gill, 2006). Risk management related to resistance to change must involve a pilot project to determine the workability of the change process.

Influence culture, personal values, globalization to organizational leadership

Within organizational set up, some managers are resistant to changes while others are not. Such changes are facilitated by fear of challenges that come along. Mostly, such changes are pushed by need for globalization, in an attempt to gain competitive advantage. In adaptation to the fast moving markets, organization may focus in making their leadership programs development towards long-term strategic mind and teamwork emphasis. Some organizations might wish to stress on leadership change in managers program with a background that emphasize on short time horizons or individualism. Some organizations have formed leadership engines which foster new ideas to have the job done under the watch of focused leaders (Gill, 2006). Focus is usually on those individuals who involve in developing new ideas for the firm, create values which facilitate the application of those new ideas or those staff members who undertake courageous decisions concerning ideas while at the same time motivating others in application of those ideas. An exceptional ability is demonstrated in leaders airing their points via vibrant stories. Organizational leadership is never about behavior instructions but it’s about training other individuals to lead.

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Gender issues and organizational leadership

Influence of gender issues is evident both at organizational or individual level. Complete maximization of potentials makes it necessary to minimize negative gender influence and empower both men and women. Power is a resource which is complicated and influences peoples’ interactions. Response to power between women and men is highly varied and they should be connected to enhance organizational effectiveness. In interpersonal relationship, men and women contain complex relations since they speak differently and their behaviors are distinct. Women have been found to be having authority positions access yet they remain under-represented within majority of the public sector (Gill, 2006).). Gender socialization has been found to exist where individuals are socialized in behaving in gender appropriate manners. Such behaviors help define what’s feminine or masculine and there are always constraining. Deviant behaviors within genders can cause significant impacts within the workplaces or organizations environment. Stereotypes behaviors within the organizations have been evident based on gender issues. Such traits need to be addressed within organizations or businesses for greater achievements.

Personal leadership perspective application

Within personal leadership perspective, personal characteristics in some individuals have emulated effective organizational leadership. Good leadership has been linked to aspects of intelligence or personalities such as sociability, extraversion, self confidence, resilience or high energy levels. According to Aristotle, personality serves a key to drive our daily behavior habits. Such habits can be helpful in advancing our leadership qualities or hinder it. Effective leaders have been associated with high levels of intelligence especially in memory and reasoning. Similarly, these types of leaders are emotionally intelligent because they are properly aware of themselves in relation to their emotions, strengths, tendencies or weaknesses. Individuals of such kind apply their emotions to enhance decision making or thinking. Emotions are regulated consciously and mange their moods intelligently. Effective leaders of such kind are kept updated of external and internal happenings and inform others as well. According to Klatt & Hiebert (2001), interpersonal roles are evident since they represent the organization in social or formal functions. Similarly, decisions roles are entrusted to successful leaders in initiating improvements or initiating innovations.

Ethical centrality to organizational leadership

Organizational set-ups have reinforced powerfully ethical behavior centrality in various firms. Past years have been bombarded with corporate business scandals, with the popular Enron scam gaining popularity in view of unethical leadership practices among businesses. Basically, ethical issues involve leaders or managers daily undertaking in business decisions for self-gain. Organizational leaders make thoughtful judgments or considerations within the ethical complexity (Miner, 2005). Decisions in this kind are made in a fast pace and under considerable pressure. Leaders can inevitably avoid making difficult decisions that are ethically based. Choices based on ethics must be significant and must be in apposition to address the situations managers face daily in their operations. Individual knowledge of ethics is significant to organizations leaders since they are assisted to develop tools or ways that are helpful in complex ethical decisions


In conclusion, in reference to the above stated thesis, it has been demonstrated that organizational leadership to be highly linked to aspects of gender, organizational change, culture, ethical behaviors and leadership theories. Clearly, organizational leadership theories have been found to be in wide application within organizations’ operations. Similarly, leadership has been revealed to be the central part in organizational achievements or performance (Yuk1, 2009).

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