The Nature of Leadership in Business

Introduction

The character of leadership in any organizational structure is the determining factor for the organization’s success. The direction and motivation of a leader are determined by the leadership style employed, which in turn facilitates and influences how an organization achieves its objectives. Different personality traits determine the level of organizational performance. The leadership style, motivation, and work discipline enhance employee performance. Style of leadership is a leader’s capacity to direct, influence, and motivate subordinates. The organizational structure can be described as transformative, transactional, or democratic regarding the nature of the leadership. The nature of their leadership traits determines employees’ values, abilities, and motivation. The performance of tasks is affected by the level of employee motivation. Motivated personnel accomplishes jobs flawlessly, hence enhancing productivity. The nature of leadership is determined by servant leadership that respects the needs and expectations. Transactional leadership is hierarchical and task-oriented, with the goal of rewarding high-performing staff and punishing low-performing ones, creating a culture that rewards compliance.

Literature review

Transformational and charismatic are described as the defining characteristics of Organizational Leadership. According to Brown et al. (2020), leaders are self-motivated and servants who affect the effectiveness of others, resulting in favorable attitudes and behaviors among employees. A charismatic leader benefits the group’s efforts (Brown et al., 2020). Through the social exchange, Brown et al. (2020) propose that the transformational nature of leadership in the organizational structure influences the relational foundation inside the organization. The cultivation of employee interests characterizes transformational leadership through awareness and purposeful acceptance of any leader’s position. Therefore, leaders look beyond their interests to improve workforce performance (Brown et al., 2020). Brown et al. (2020) define natural transformational leadership as a commitment to the business’s aims that enables employees and stakeholders to assist the organization in achieving its objectives.

Brown et al. (2020) describe the nature of transformational leaders in the organizational structure as empowering stakeholders that enable organizations to sustain organizational standards and needs. The essence of transformational leadership generates genuine optimism that generates awareness that encourages and aids the organization in addressing problems (Brown et al., 2020). In the organizational structure, leaders and stakeholders are fostered to address issues through an interchange process that enables leaders to identify needs and examine expectations that promotes task completion.

According to Al Khajeh (2018), transformational leadership is characterized by its emphasis on developing followers and putting their needs first. Transformational leadership focuses on employees’ value development. For instance, the development of talents, morals, and employee motivation. Transformational leaders narrow the gap between transformational leadership leaders and other stakeholders to build followers’ abilities and values Al Khajeh (2018). Therefore transformational leadership exhibits a superior kind of leadership performance that elevates the interests of employees inside the organizational structure.

Transformational leadership is effective in organizational structures because it inspires and motivates employees and inspires and motivates employees (Al Khajeh, 2018). Al Khajeh (2018) discovers a positive correlation between transformative leadership and team performance inside the organizational framework. The performance of an emAn employee’s performance skills, abilities, and knowledge is a deterministic component in establishing behavior characteristics inside the organizational structure. Transformational leadership fosters an environment that generates a positive working environment that helps all stakeholders in an organization feel satisfied, hence influencing the organization’s success (Al Khajeh, 2018). According to Brown et al. (2020), transformational leadership’s characteristics include intellectual stimulation, idealized influence, customized care, and inspirational motivation. The aspect employs employee mentoring, training, and coaching, fostering optimism and high standards inside the corporate structure.

Brown et al. (2020) characterize the nature of leadership in the organizational structure as servant Leadership that respects the needs and expectations of followers. Ideally, transactional leadership is hierarchical and task-oriented, with the goal of rewarding high-performing staff and punishing low-performing ones, creating a culture that rewards compliance (Brown et al., 2020). Brown et al. (2020) define various transactional leadership styles that foster the nature of leadership within an organization’s framework, such as laissez-faire, reward leadership, and outstanding management. The nature of exceptional management is to ensure few errors by enforcing the rules (Brown et al., 2020). The responsibility of management is to address errors that may result in severe losses for the organization. Therefore, it is the nature of active management to watch the behavior of stakeholders. In contrast, the nature of exceptional passive management is to monitor the behavior of employees until it becomes unethical and undesirable to the organization. The essence of laissez-faire leadership ensures that employees make decisions on some topics within the organization (Brown et al., 2020).

Brown et al. (2020) note that transactional leadership helps foster the organization’s structure by allowing all stakeholders and employees to express their demands, views, skills, and creativity in organizational decision-making. According to Brown et al. (2020), enterprises must adopt a democratic model of leadership that develops future leaders who will continue cultivating the organization’s structure to preserve its character. As a result of enhancing the organizational structure, performance is also enhanced. Blake (2020) suggests that transactional leadership inspires employees, thus, enabling employees to perform beyond expectation.

According to Razak et al. (2018), the most successful organizations build leadership systems that foster a culture of work motivation that guides people toward accomplishing organizational structure and objectives. Work motivation promotes a favorable attitude in employees, which strengthens their motivation and enables them to attain the highest level of performance, according to Lecture (2018). Work motivation aims to enable all business stakeholders to work together toward achieving the organization’s objectives (Lecture, 2018). Razek et al. (2018) suggest that motivation is a natural and individual disposition that pushes an individual to execute actions that are advantageous to them or their organizations. Therefore, motivation is a natural leadership possessed by all company stakeholders to preserve the organizational structure.

According to Razak et al. (2018), motivation corresponds with work discipline, which determines the character of work relationships within an organization. Every organization has its own rules and regulations that control the execution of activities and uphold the organization’s structure. In an organization, disciplined employees obey, observe, and carry out their obligations in a manner that sustains the work relationships and employee connection, hence preserving the organizational structure (Razek et al., 2018).

According to Oberer and Erkollar (2018), the nature of leadership in an organization includes the ability to comprehend, communicate, and collaborate with other stakeholders, which leads to the formation of productive relationships inside the organization. Leaders must have technical skills or conceptual ideas that allow them to conceptualize problems and have options to manage situations within the organization, hence preserving the character of the organizational structure (Oberer, & Erkollar, 2018). According to Oberer and Erkollar (2018), various leadership styles determine the leadership structure used by an organization. For instance, Oberer & Erkollar (2018) examine the autocratic leadership style in which leaders make decisions unilaterally and delegate responsibilities to subordinates.

According to Chukwusa (2018), authoritarian executives make decisions based on their ideas without participation from other staff members. These leaders exploit the regained authority to dictate work procedures and tactics, as they never have in-group faith members. According to Chukwusa (2018), the most significant advantage of this type of leadership to the organization’s structure is that it fosters innovation. For example, if choices must be taken quickly without extensive deliberation, then the culture of quicker decision-making must be maintained, especially in emergencies such as medical emergencies (Chukwusa, 2018).

Hilton et al. (2021) discuss democratic leadership and its impact on the determination of organizational structure. Participation of subordinates in the organization’s decentralized decision-making process is guaranteed by democratic leadership. Hilton et al. (2021) note that adopting a democratic form of leadership in a company serves as a motivating element for employees because the business’s senior management honors the viewpoints of senior employees. As a result, a positive work environment is created within the firm, as the requirements of the employees are acknowledged. The philosophy of democratic leadership fosters a sense of responsibility inside a company, fostering healthy relationships between employees and senior personnel (Hilton et al., 2021). Brown et al. (2020) propose a bureaucratic leadership model that ensures staff and stakeholders adhere to the policies and procedures they have created. This assists them in understanding the function of organizational structure. The leadership model guarantees that defined rules execute tasks as intended, preserving the organizational structure.

According to Buchanan and Huczynski (2019), organizational leaders establish benchmarks that serve as a reference for measuring performance and comparing real standards to benchmarks, guiding them to take action when necessary. The establishment of regulated performance criteria for an organization assists leaders in determining their position in the pursuit of organizational objectives. Every business has a predetermined organizational structure that determines its survival. Therefore, Buchanan & Huczynski (2019) note that in order to maintain the nature of the organizational leadership structure, it is necessary for various levels of performance and departments within the organization to adhere to and maintain certain standards that determine how the company utilizes its limited resources. Organizational leaders must ensure that controlled performance is of the highest quality or that actions are taken to improve controlled performance to maintain the organizational culture, which demonstrates the specific standards and norms of a firm that dictate the nature of its leadership. Leaders of an organization assign functions and ensure a division of labor among its members.

According to Buchanan and Huczynski (2019), performance measurement using scorecards influences total employee happiness. In a given organization, the nature of leadership is determined by the quality of the job. According to Buchanan and Huczynski (2019), the character of leadership within an organization impacts its efficacy, which is determined by motivation, human resource policies, teamwork, management styles, development agenda, and organizational design. The level of motivation offered by leaders impacts the cohesiveness of an organization, which in turn determines its organizational effectiveness and teamwork.

Schedlitzki & Edwards (2021) note that leadership positions inside an organization determine the style of leadership demonstrated by the organization structure that acts as the leadership function of the wider organization system. The type of leadership established by an organization serves the purpose of establishing the mission, vision, goals, strategies, tasks, and plans that influence the growth and nature of the company (Schedlitzki, & Edwards, 2021). According to Schedlitzki and Edwards (2021), leadership is a collectively effective perspective. For the character of leadership in the organizational structure, he or she must promote teamwork and achieve organizational goals. Schedlitzki & Edwards (2021) argue that senior organizational leaders play a crucial role in determining the direction and purpose of an organization as part of the maintenance of natural leadership in the organization hierarchy.

The primary determinant of leadership is its emphasis on interpersonal impact and cognitive processes, which is the foundation of leadership literature. The cognitive requirement entails the development of a platform that identifies the nature of a problem and the implementation of strategic solutions inside the company (Schedlitzki, & Edwards, 2021). Moreover, Schedlitzki & Edwards (2021) assert that executive leaders must foster the value of their organization by ensuring that the essential activities and purpose of the business are well understood. It is inherent in the character of a leader to supply organizationally influential guild lines, philosophies, and directives.

Schedlitzki & Edwards (2021) further emphasize that strategic decision-making and management inside an organization result from the alignment between the company and its environment. Strategic management’s role in maintaining organizational structure is to make decisions that affect the organization’s interaction with its environment. Schedlitzki and Edwards (2021) notice further that strategic executive decisions impact the relationship between the firm and its environment. Strategic management stresses the internal coordination of operations and responsibilities inside the organization’s social systems, altering the nature of leadership experience within the organizational structure (Schedlitzki & Edwards, 2021). The strategic model provides ideas and guidelines that apply at various organizational leadership levels and establish the nature of leadership within the company.

According to Razak et al. (2018), strategic management identifies the human resources that assist the organization in achieving its objective and maintaining its organizational structure. Any organization’s success is defined by its available resources and leadership style. The nature of organizational resources and leaders has an impact on the character of the organizational structure. Razak et al. (2018) remark that low resources and poor leadership significantly impact an organization’s structure.

According to Razak et al. (2018), how leaders manage human resource management determines the workforce essential for accomplishing corporate objectives. Razak et al. (2018) further emphasize that efficient human resource planning can modify the character of organizational costs by reducing management costs and creating more time for the distribution of tasks, talents, and ideologies, which boosts the growth of the company and enhances its diversity. According to Razak et al. (2018), human resources management is a key discipline that entails planning, organizing, executing, and managing.

In addition, Razak et al. (2018) say that human resource management is the application of management specifically to human resources; hence, it can be stated as follows: Human resource management is the art of planning, coordinating, directing, and overseeing employee human resource duties to achieve organizational goals. Human Resource Management is a corporate activity that tries to obtain a trustworthy and qualified workforce through planning, organizing, implementing, and regulating to achieve the organization’s objectives that helps maintain the organization structure’s culture.

Razak et al. (2018) point out that good Human Resource Planning will result in the: Elements of better human understanding by top management due to their exposure to business choices. Because management may anticipate that imbalances would incur high costs or be unresolved, HR expenditures can be decreased. More time is available for talent placement when personnel shortages are expected and identified before their occurrence. For these employees, the likelihood of engaging members of protected groups in future growth plans to improve organizational diversity is greater (Razak et al., 2018).

Mutuku (2018) notes that leadership is important in guaranteeing the organization’s success. Good leadership within an organization cultivates the nature of success through human resource management and the leaders’ ability to communicate their vision, a sense of purpose, and excitement to the organization. Therefore, leadership entails inspiring and motivating teams and stakeholders to enable them to provide their best effort to attain organizational objectives that foster success (Mutuku, 2018).

According to Mutuku (2018), successful leadership generates a timely, innovative, profitable, and dynamic organizational structure that fosters a positive attitude and reduces stakeholder stress. Effective leadership establishes a goal-oriented and self-motivating platform; as a result, objectives may be attained via motivation, and more work can be performed, enhancing productivity. Mutuku (2018) argues that leaders are born; hence, leaders possess virtuous qualities that influence the nature of leadership within an organization’s structure. Leaders can affect the distinctive nature of leadership within an organization’s structure by comprehending their tasks, dealing with difficulties, and recognizing their dominance and control responsibilities.

According to McCann et al. (2006), a leader can impact the character of an organization’s structure by providing, guiding, leading, and supporting as needed. McCann et al. (2006) observe that transformational leadership’s nature is inspired by the intellectual level that determines a leader’s values, commitment, and performance. Transformational leadership offers the organization moral and purposeful commitment (McCann et al., 2006). Consequently, this helps an organization to offer incentives to employees since work is based on values and emotions.

Mutuku (2018) suggests that the transformational leadership style is directive, achievement-oriented, supportive, and participative. Mutuku (2018) analyzes further the leadership characteristics by which supportive leadership permits a leader to demonstrate personal concern for subordinates by being nice and attentive to their needs. Participative leadership ensures that a leader will consult with subordinates regarding the work culture, goals, and strategies for addressing work difficulties. According to Mutuku (2018), leadership comprises sharing information and communicating with all stakeholders before deciding. Mutuku (2018) noticed further that achievement-oriented leadership enables leaders to pursue challenging tasks and welcome great performance, which develops a path of performance among subordinates and a culture of subordinate support within the firm. Leaders demonstrate principles by raising awareness, refocusing the team’s attention away from personal pursuits, and engaging followers’ needs, a characteristic of leadership inherent in the organizational structure.

Conclusion

The nature of leadership within an organization is determined by the impact of leadership attributes on the organization’s performance. Leaders utilize a variety of leadership characteristics to ensure that an organization’s performance is optimized. Transformational, transactional, and democratic leadership are examples. The nature of the organizational structure and the organization’s performance is proportional to the applied leadership trait. The accepted leadership style provides employees with opportunities, a sense of belonging, the ability to make personal decisions, and the opportunity to participate in decision-making. The incentive level provided to employees impacts the input and output of their work. To protect the organizational structure’s integrity, employers ensure that employees are highly motivated and maintain work discipline and work ethic. Strategic management identifies the human resource aspect that affects the performance of any strong influences on the organizational structure. The ability of employees to organize and manage the human resource component determines the character of successful leadership within a business. Effective preservation of work discipline, resources, and work culture creates a path upon which tasks are appraised, talents are identified, and ideologies are produced, hence preserving the organization’s structure.

References

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Overview: In this paper, the author explores the impact of leadership styles on organizational performance. Transformational and democratic leadership styles have the greatest impact on organizational performance, while autocratic leadership hurts organizational performance.

Theme:

Transformational, democratic leadership and autocratic leadership _________________________________________

Blake, N. (2020). Authentic Leadership: How does it differ from transformational leadership? AACN Advanced Critical Care, 31(2), 196–197. Web.

Overview: In this paper, the author explores transformational leadership through a humanistic perspective. It builds upon the theory that transformational leaders inspire others to achieve extraordinary results and, more importantly, transform those followers into leaders.

Theme:

Transformational Leadership _________________________________

Brown, S., Marinan, J., & Partridge, M. A. (2020). The moderating effect of servant leadership on transformational, transactional, authentic, and charismatic leadership. Journal of International Business Disciplines, 15(2), 67-86.

Overview: In this paper, the author examines the moderating effect of servant leadership on four other leadership styles: transformational, transactional, authentic, and charismatic leadership. Servant Leadership has a significant moderating effect on all four leadership styles except authentic leadership. Servant leadership can positively affect the effectiveness of other leadership styles, and it should be included in leadership development programs.

Theme:

Servant Leadership__________________________________________________

Buchanan, D. A., & Huczynski, A. A. (2019). Organizational behavior. Pearson UK.

Overview: In this paper, the author explores the principles and theories of organizational behavior and its application in the workplace. Organizational performance and leadership are determined by motivation, communication, power and politics, group dynamics, organizational culture, change management, and decision-making.

Theme:

Organizational behavior______________________________________________

Chukwusa, J. (2018). Autocratic leadership style: an obstacle to success in academic libraries. Library Philosophy and Practice, p. 1. Web.

Overview: In this article, the author examines the impact of the autocratic leadership style on the success of academic libraries in Nigeria. Autocratic leadership styles, characterized by the leader having absolute power and decisions being made unilaterally, can be detrimental to the success of an organization.

Theme:

Impact of autocratic leadership style___________________________________

Hilton, S. K., Arkorful, H., & Martins, A. (2021). Democratic leadership and organizational performance: the moderating effect of contingent reward. Management Research Review. Web.

Overview: In this article, the author examines the relationship between democratic leadership and organizational performance and the moderating effect of contingent reward. Democratic leadership is a style of leadership that encourages active participation from team members and allows them to make decisions and have input in the decision-making process. The contingent reward can be an effective way to boost the impact of democratic leadership on organizational performance.

Theme:

Democratic Leadership and Organizational performance______________________________

Lecture, I. (2018), Analysis of organizational culture, competence and work motivation: the effect on satisfaction and performance of government employees of prepare. Russian Journal of Agricultural and Socio-Economic Sciences, 74(2), 148-155.

Overview: In this article, the author examines the effect that organizational culture, competence, and work motivation have on the satisfaction and performance of government employees. Organizational culture, competence, and work motivation are important factors that influence the satisfaction and performance of government employees. This study is valuable for understanding the factors influencing employee satisfaction and performance in the public sector. It also provides important insights into how public sector organizations can improve their performance.

Theme:

Work Motivation_______________________________________

McCann, A.J.J., Langford, P., & Rawlings, M. R. (2006). Testing Behling and McFillen’s syncretical model of charismatic, transformational leadership. Group and organizational management, 31(2), 237–267. 

Overview: In this article, the author examines charismatic, transformational leadership and finds out that charismatic, transformational leadership has a positive influence on performance within the company. When charismatic transformational leadership was combined with other leadership styles, the effects of charismatic and transformational leadership were even stronger.

Theme:

Charismatic Transformational Leadership_____________________________________________

Mutuku, C. (2018). The Role of Leadership Theories in Making an Effective Leader. GRIN Verlag

Overview: In The Article, the author examines the Role of Leadership Theories in Making an Effective Leader using different leadership theories. The type of leadership style adopted, motivation, and employee engagement enhance an organization’s success. The Role of Leadership Theories in Making an Effective Leader is a valuable resource for leaders, managers, and students interested in learning more about leadership and how to become an effective leader. It is an invaluable resource for anyone looking to develop their leadership skills and create a successful team.

Theme:

The Role of Leadership Theories________________________________________________

Oberer, B., & Erkollar, A. (2018). Leadership 4.0: digital leaders in the age of industry 4.0. International journal of organizational leadership. https://ssrn.com/abstract=3337644

Overview: In the Article, the author explores the impact of digital technology on leadership in the age of Industry. The authors propose a new leadership framework that emphasizes the need for digital leaders with the knowledge, skills, and abilities to lead in a highly digitized and interconnected world. This framework consists of four key areas: digital transformation, digital strategy, digital skills, and digital leadership. Through the use of case studies and a discussion of the latest research and trends, the authors provide readers with an in-depth understanding of the new challenges and opportunities that digital technologies present to leaders.

Theme:

Impact of digital technology on leadership ___________________________________

Razak, A., Sarpan, S., & Ramlan, R. (2018). Effect of leadership style, motivation and work discipline on employee performance in PT. ABC Makassar. International Review of Management and Marketing, 8(6), 67. Web.

Overview: The author discusses the effects of three key variables on employee performance in PT, a Malaysian public sector organization. The three variables investigated were leadership style, motivation, and work discipline. Specifically, the study found that transformational leadership, intrinsic motivation, and high levels of work discipline were associated with higher levels of employee performance. The authors concluded that it is important for organizations to focus on developing leadership styles, motivating employees, and encouraging employees to adhere to high levels of work discipline in order to improve employee performance.

Theme:

Transformational Leadership_________________________________

Schedlitzki, D., & Edwards, G. (2021). Studying Leadership: Traditional and critical approaches. Sage.

Overview: In this book, the authors discuss leadership using Traditional and Critical Approaches. The author examines the various ways of studying leadership, including traditional and critical approaches. The implications of contemporary challenges such as globalization, digitalization, and the need for greater diversity in leadership.

Theme:

Leadership using Traditional and Critical Approaches ______________________________

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