The Impact of Leadership on Organizational Performance


Leadership is one of the most important factors for developing strong performance. As leaders are important decision-makers they plan the procurement, development, and investment of organizational resources. Moreover, the transformation of these resources into worthy products and services, and the delivery of value to organizational stakeholders is also the responsibility of a leader. Thus, they are strong sources of managerial and sustained competitive advantage.

Sam Mizrahi Toronto based real estate developer is an example of a leader whose leadership has had a positive impact on organizational performance. Working on projects like The One (located at 1 Bloor West, the tower is set to become the tallest building in Canada upon completion) requires great leadership skills and also the ability to have a positive impact on organizational performance.

Transformational leadership behaviors are more positively related to subordinate effectiveness in a variety of organizational settings than are transformational behaviors. The transformational behavior of leaders influences employees’ motivation to make them more aware of their duties outcomes and develop their self-interest for the organization’s performance. Rightly said by Theodore M. Hesburgh, former president of the University of Notre Dame, “The very essence of leadership is that you have to have a vision. You can’t blow an uncertain trumpet.”

Roles of Leader in an Organizational Performance:

The role of a leader in an organization is to help identify a worthless goal, help devise appropriate strategies to achieve such goals, and provide direction and motivation for the group so that agreed-upon goals can be attained. The leader must recognize the value system that operates in a variety of workgroups and situations. They must listen to questions as well as provide answers. He must comprehend the difficulty of being a subordinate to understand the fear. There are some qualities that a good leader must possess to enhance the affairs of an organization; some of such qualities are as follows:

Be Objective- Leaders should examine each situation before making decisions. Objectivity is the ability to look at issues and problems rationally or impersonally without bias.

Be perceptive- This entails the ability to observe or discover the realities of one’s environment. Leaders in an organization need to know the objectives and goals of the entire organization so that they can work to support these goals.

Establish Priorities: The ability to recognize what is important and what is not. A leader is to know which alternatives are worthy of consideration or not.

Human Relations- This is otherwise called interpersonal relationships. A leader should be strong in his human relations attitude, especially when his job is done through the subordinates. Building and knowing the relevant human relations skills will get the leader respect.

Crisis Management- A leader should be able to settle disputes or differences among his employees as well as issues that impair employees’ output. Only then he will be capable of keeping the team together and taking them forward.

Effective Decision Making- A leader or a manager has to be a good and effective decision-maker, only then will he be able to make strategic plans. Effective decision making in contemporary management involves defensive avoidance, collecting more and more information about the cost and utility of each alternative, and comparing them systematically to choose the most effective costs.

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