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The Impact of Leadership Style on Organizational Success

 A study by Asmin Mirzani (2023), published in the International Journal of Economics, Business and Management Studies (EBMS), used primary and secondary research methods to understand how leadership styles affect organizational performance comprehensively. The study highlighted the complex interplay between leadership practices and organizational success by examining real-world examples and academic theories. This article summarizes key points related to each style's influence on an organization.


Leadership is one of the most significant aspects of organizational success. When considering leadership, concepts of power, authority, and influence often come to mind. Messick and Krammer (2004) argue that the extent to which an individual exhibits leadership traits depends on their characteristics and abilities and the situational and environmental factors they encounter. Leadership involves influencing others, achieving organizational goals, and creating a cohesive and motivated workforce.

Dwight D. Eisenhower, the 34th president of the United States, once said, "The ability to decide what has to be done, and then to persuade others to want to do it." This quote encapsulates the essence of effective leadership—guiding others toward a shared vision and motivating them to contribute their best efforts.


Various leadership styles and practices influence organizational performance and success. Leaders are critical in shaping organizational culture, values, and employee motivation and retention. Transformational, transactional, and participative leadership styles can significantly impact these areas.


Transactional Leadership: Transactional leadership focuses on exchanges between leaders and followers, where followers are rewarded for meeting specific goals or performance standards. While this style can be effective for short-term objectives, it may not sustain long-term organizational success. It relies heavily on structured tasks and clear expectations, sometimes limiting creativity and innovation.


Transformational Leadership: Conversely, transformational leadership emphasizes subordinates' development and growth. Transformational leaders inspire their employees by aligning their personal goals with the organization’s goals, fostering an environment of mutual respect and shared purpose. This style leads to higher levels of employee engagement, motivation, and productivity. Transformational leaders create a sense of honor and belonging, which enhances information sharing and collaboration (Kark & Shamir, 2002).


Participative Leadership: Participative leadership involves employees in decision-making processes, fostering a sense of ownership and accountability. This style can increase job satisfaction, creativity, and commitment among employees. It leverages the diverse perspectives and skills within the organization, leading to more innovative solutions and a stronger team dynamic.


Leadership Qualities and Organizational Impact: Quality leadership is essential for individual career development and for achieving organizational goals. Leadership styles influence the quality of work life, employee satisfaction, and overall organizational performance. Effective leadership requires a combination of personal characteristics, situational awareness, and the ability to adapt to changing circumstances.


Leadership style significantly affects organizational culture, performance, and overall success. Leaders who can adapt their style to meet their organization's and employees' needs are more likely to achieve long-term success. As organizations continue to evolve, effective leadership remains a critical factor in navigating challenges and seizing opportunities.


Gerry Savage


References

Mirzani, Y. (2023). A study on leadership styles and its impact on organizational success. EPRA International Journal of Economics, Business and Management Studies (EBMS), 10(1). https://doi.org/10.36713/epra1013

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