Experienced Leader in Modern Organization’s Development


The importance of developing leadership behavior in management and business is undeniable. Leadership is an extensive notion that requires several skills to be developed. Communication may be a crucial skill since it is needed to ensure both the ability to find a common language with employees and colleagues and the potential to negotiate and conclude contracts with business associates. Additional skills that are essential in leadership are decisiveness, agility, confidence, and team building.

The capability to make momentous decisions, take actions, dynamically adapt to the new environment, convince, and motivate the collective demand for the development of the above-mentioned skills. The given attainments will assure successful management and business. Organizations are interested in developing such a behavioral pattern since it has a direct impact on their progress and competitiveness in the international market.

The Need for Leadership

As a result of rapid environmental changes, heightened competition, constant changes in customer preferences, and innovations, companies are finding it difficult to succeed. Organizations of various sizes and directions seek to survive, develop, and continue and grow. This does not take place independently without the existence of efficient leaders in the organization that are able to achieve their goals and ambitions in addition to understanding the latest developments and events in order to ensure the continuation and growth of the organization (Sadq et al., 2020, p. 3096). Therefore, the further literature review is aimed to consider the need for leadership in business successful development.

The Economic Consequences of Leadership Effectiveness

The role of leadership in management in modern organizations is so substantial that it has appreciable economic consequences in business. Companies are constantly looking for alternative methods and approaches to improve and develop leadership effectiveness. “The continued need to increase leadership effectiveness and leadership development initiatives has implications for a firm’s bottom line and is reflected in American corporations’ annual expenditure of more than $14 billion on improving leadership effectiveness” (Kouzes and Posner, 2019, p. 829). Thereby, the absence of leading development may affect the business adversely. “The economic consequences of poor leadership in corporate America are estimated to annually cost $450 to $550 billion” (Kouzes and Posner, 2019, p. 829).

Such a considerable influence is explained by the fact that leaders’ behaviors and actions impact employee motivation, involvement, and job satisfaction and, consequently, the quality of work done, which directly affects the company’s success, opportunities, and perspectives.

The Importance of Employees’ Well-Being

In business, leaders are considered efficient and confident individuals who are able to set the needed work strategy. Embedded in a social context, a person’s self-efficacy increases through enactive attainment, mastery experiences (of new challenging tasks), vicarious experiences, which involve observing the performance of others, and verbal persuasion- all processes that leaders can influence (Inceoglu et al., 2018, p. 182). Leaders ensure meaningfulness, relevance, and value of performance targets and work done.

Such an approach guarantees employees’ motivation and engagement in the work process since efficient leaders provide them with job design, which includes, for instance, job autonomy and task variety. Work provides the opportunity for individuals to meet needs for competence, affiliation, and autonomy, and numerous studies have shown that job characteristics are linked to employee well-being (Inceoglu et al., 2018, p. 182). A well-adjusted leadership organization will help unleash the potential of employees.

Poor Leadership Consequences

Poor leadership may cause employees’ disengagement and indifference to company development. Only 30% of employees actively apply their talent and energy to their organizations forward. Fifty percent are just putting their time in, while the remaining 20% act out their discontent in counterproductive ways (Kim and Mauborgne, 2017, p. 169). Therefore, the leaders should develop a work environment following employees’ range of interests by ensuring a variety of tasks.

The Factors Influencing Employees’ Performance

Along with leadership impact, some factors may influence the work process and employees’ well-being in general. The efficacy of employees’ work may be also determined by the conception of their mindset. Consequently, their perception of difficulties and challenges at work might also be different. According to Kouzes and Posner (2019, p. 830), people with a growth mindset appreciate the chance to learn and are willing to work hard and even struggle, to develop. However, there are individuals who percept challenges in a different way. During challenging times, especially after experiencing setbacks, people with a fixed mindset can be expected to shy away from activities that may imply an area of deficit (Kouzes and Posner, 2019, p. 830). An experienced leader should consider the above-mentioned features of his subordinates.

The Factors Influencing Leaders’ Performance

The psychological factor may have an impact on leaders’ mindsets as well. Kouzes and Posner’s (2019, p. 832) studies used managers enrolled in MBA programs to test the difference in the managers’ willingness to help others based on their fixed or growth mindset beliefs. The leaders’ beliefs about the nature of their traits affect their ability to interact with employees. The findings from the studies provided evidence that a growth mindset is predictive of managers’ coaching or helping behavior and that a growth mindset may be induced in those managers with fixed mindsets. (Kouzes and Posner, 2019, p. 832). The understanding of the given psychological factors is crucial in improving leaders’ performance at work.

Different Leadership Styles

Despite the general set of qualities common to a leader, leadership styles may differ depending on the work environment. Leadership style should be built under the context where it takes place. Leadership styles that are valued and effective in one work context might be less desirable and less effective in another context (Willis et al., 2017, p. 2). Therefore, different leadership skills and methods may differ in different work situations. A high-risk work environment may require a particular leadership style.

Contexts where safety is highly critical, such as oil and gas installations, mining or construction sites, are inherently hazardous and errors, deviations from standards, and other failures can have severe consequences (Willis et al., 2017, p. 2). Moreover, the understanding of leadership in unstable situations where employees work in dangerous situations is less evident than leadership in more safe and common workplaces where there is no risk for accidents.

The Leader’s Orientation of Behavior Organization

The leader’s strategy and the aim should be different in high-risk situations. According to Willis et al. (2017, p. 2), in safety-critical conditions, leader practices such as correcting errors and active monitoring of safety behavior will be more strongly associated with performance, whilst inspirational leader behaviors will be less strongly related to performance. A high-risk work environment affects the leader’s organizational behavior and targets. In such situations, the leader’s orientation is focused more on the avoidance of loss and prevention of accidents and injuries than on promotion and advance of the company in general.

The Effectiveness of Ethical Leadership

As it was already mentioned, the success of the business performance is closely related to its leader’s effectiveness. An efficient leader is planning organizational strategies and controls its activities. Every organization needs to develop leadership effectiveness for creating higher job involvement, job satisfaction, and organizational commitment, and for improving a positive outlook of stakeholders toward the organization (Sharma et al., 2019, p. 713).

Furthermore, it should not be denied that the leader’s attitude and ethics play a crucial role in the company’s outcomes. Ethical leadership behavior is desirable because it makes affects employee attitudes and behavioral outcomes such as organizational commitment, deviance, job satisfaction, employee happiness, role performance, and creativity (Sharma et al., 2019, p. 714). Ethical leadership behavior may help to develop trustworthy relationships at the workplace, which might be vital for any team building. According to Sharma et al. (2019, p. 719), many organizational surveys claimed that employees aspire to be connected with chiefs who are truthful, believable, courteous, and fair in their approach. Therefore, companies are able to attract and keep their employees, who, for their part, will be able to work in a trustful environment.

Entrepreneurial Leadership and Business Performance

Business development requires a dynamic mindset and the ability to follow any innovations since all innovations contribute to performance. Innovations are combinations of new activities, strategies, and approaches that enable organizations to maintain a competitive advantage in the international marketplace. It includes new goods or a new quality of a product, methods of production, markets, and sources of supply as well as a new way of the firm (Paudel, 2019, p. 350).

The effectiveness of a business organization is determined by the ability of its leader to adapt to new conditions and environments. The company leader must be responsive to scanning the external business environment in order to adopt an innovative strategy and improve company performance, as a dynamic business environment offers important market opportunities (Paudel, 2019, p. 351). Entrepreneurial leaders should encourage their employees to take radical decisions and innovative action.

Entrepreneurial Leadership and Environmental Dynamics

The relationship between innovation and performance is due to environmental dynamics. The main challenge for entrepreneurial leadership is to consider different alternatives for adapting business performance. Entrepreneurial Leadership ensures the development of creativity and productivity, business performance, and strategic management of resources for business organizations. Otherwise, businesses might confront the challenge that existing products and services deteriorate quickly and earnings quickly diffuse to rivals (Paudel, 2019, p. 352).

The dynamics of the environment require from the entrepreneurial leadership a clear understanding of the future strategy of the firm. it is to consider different alternatives for adapting business performance. To minimize managers’ uncertainty, firms devote resources to R&D (Research and Development) that actively acquire new technologies, scan emergent customer preferences as well as design and innovate new products and services (Paudel, 2019, p. 352). Hence, the given approach allows firms to gain above-average profit as well as analyze the client market.

Blue Ocean Leadership

For many years, research has been conducted, the main goal of which is to summarize the qualities, traits, and behaviors for successful leadership. However, altering employees’ personal traits and behavioral styles might be harder than setting specific tasks and goals that employees, as well as leaders, need to complete. Blue ocean leadership focuses on what acts and activities leaders need to undertake to boost their teams’ motivation and business results, not on who leaders need to be (Kim and Mauborgne, 2017, p. 169).

A British retail group has identified the impact of blue ocean leadership on executive performance. On the front line, for example, employee turnover dropped from about 40% to 11% in the first year, reducing recruitment and training costs by 50%. Factoring in reduced absenteeism, the group saved more than $50 million in the first year, while customer satisfaction scores climbed by over 30% (Kim and Mauborgne, 2017, p. 169). The given analysis shows that the impact of blue ocean leadership is substantial enough, and it might unleash the talents of employees and their leaders.

Leading Companies’ Marketing Strategies

The work of an experienced leader may identify the organization’s key success factors. Leaders of the leading companies analyze the needs of potential clients to reinforce the brand name in the modern marketplace. Amazon.com may serve as an example of such a successful marketing approach. Amazon’s marketing strategy is designed to strengthen the Amazon brand name, increase customer traffic to the Amazon.com websites, build customer loyalty, encourage repeat purchases and develop incremental product and service revenue opportunities (Majed et al., 2018, p. 65). Such approaches might be crucial to developing and strengthening the brand since a properly organized marketing strategy and competent work with the client base ensures the company’s success.

Business Model Innovation

The business model of any organization is to combine the actions of its partners and suppliers in order to create value for a potential client. The task of an innovative business model is to ensure access for potential customers to new offers, goods, facilities, and services that were not previously available to them. Company leaders find alternative methods of delivering the company’s new benefits while minimizing costs and thereby improving the perspective of the company itself and delivering better quality to their clients. The leader creates these benefits by adding complementary products and services that build on what the enterprise already provides, combining solutions to help customers grow the market faster, and adjusting prices to encourage more purchases (Saiyed, 2019, p. 72). The given statistics drive company growth and development, help improve customer service, draw clients’ attention, and reduce costs.

Alignment of Business Strategies

Organization leaders work to retain existing customers and monitor competitors. Chiefs embed innovations and new ideas to grow the organization to ensure the company’s leading. However, an experienced leader should weigh the advantages and drawbacks before introducing new vectors of development to their team. The organization is thinking before entering into a new business to make sure its profitability and ensuring its ability to maintain its current market share (Mirkhan et al., 2017, p. 343). The leader’s goal is to act so that the company ultimately turns out to be profitable in any condition, as well as avoid the negative profit.


The above-conducted research shows that the role of an experienced leader may be crucial in modern organizations’ development. The poor-developed leadership may adversely affect the company’s incomings and finances. Competent leadership ensures business competitiveness, the ability to adapt to new conditions and environments, and the employees’ well-being, involvement, motivation, and satisfaction.

Reference List

Inceoglu, I., Thomas, G., Chu, C., Plans, D., & Gerbasi, A. (2018) ‘Leadership behavior and employee well-being: An integrated review and a future research agenda’. The Leadership Quarterly, 29(1), pp. 179-202.

Kim, C. W. and Mauborgne, R. A. (2017) Blue Ocean leadership (Harvard business review classics). Harvard Business Review Press.

Kouzes, T.K. and Posner, B.Z. (2019) ‘Influence of managers’ mindset on leadership behavior’. Leadership & Organization Development Journal, 40(8), pp. 829–844.

Majed, S., Nuraddin, S., & Hama, S. (2018) ‘Analyzing the Amazon success strategies’. Journal of Process Management. New Technologies, 6(4), pp. 65–69.

Mirkhan, D., Sadq, Z., & Omer., S. (2017) ‘Analyzing the role of strategic alignment of business strategies related to the (Miles & Snow) model on competitive intelligence’. International Journal of Advanced Research, 5(3), pp. 337–362.

Paudel, S. (2019) ‘Entrepreneurial leadership and business performance’. South Asian Journal of Business Studies, 8(3), pp. 348–369. Web.

Sadq, Z. M., Khorsheed, R. K., Mohammed, H. O., and Othman, B. (2020) ‘The effect of administrative leadership on achieving business success strategies (The case of Lebanese French university)’, International Journal of Advanced Science and Technology, 29(02), pp. 3095–3102. Web.

Saiyed, A. A. M. (2019) ‘The role of leadership in business model innovation: A case of an entrepreneurial firm from India’. New England Journal of Entrepreneurship, 22(2), pp. 70–88. Web.

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

Willis, S., Clarke, S., & O’Connor, E. (2017) ‘Contextualizing leadership: Transformational leadership and management-by-exception-active in safety-critical contexts’. Journal of Occupational and Organizational Psychology, 90(3), pp. 281–305. Web.

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