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An empirical analysis of the impact of organizational performance and leadership

Empirical analysis
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The connection between leadership and performance has been the focus of many recent empirical studies. In modern times, the rewarding and recognizing staff has also come to be acknowledged as an essential component of effective management. A shift in talent management practices and the spread of millennial in the workplace has seen attention move to coaching and constant feedback, with the offer of a clear incentive or pathway important to sustain motivation levels. The role of the leader or manager in the workplace is possibly the most noteworthy in terms of impact on organizational performance. Leaders have the most direct influence on employees they line manage. They are responsible for lining up the performance of their department and its staff with key organizational goals. They play a significant role in modeling organizational culture. Basically, they are the vital link connecting senior management with those working at the grass-roots level. Given the solid nature of these responsibilities, the method, style and accomplishment of company leaders have a wider effect than any other workplace function.

Engaging over performance management
Structuring and assisting: a tough and well-executed performance management culture is one of the main areas in which a leader can impact on business consequences. A well planned structure allows for regular meetings between leaders and employee, providing for allocating clear, quantifiable performance goals as well as prospects for mentoring. Regular evaluations allow for easier identification of underperformance and also a hope for the employee that there is a clear direction to personal progress and improvement within the organization.

Engaging employees: Statistic captures the influence of leaders on the day-to-day experience of employee research that leaders account for 70% of variance in employee engagement scores. In assessing this analysis, the Harvard Business Review cites two additional behaviors which impact both employee engagement and performance levels within the business. The first of these is, unsurprisingly, communication. Various empirical studies have stated a strong relation between dependable and constant managerial communication with higher engagement levels, with those linking face-to-face, phone and communication tools seeing the best consequences. However, evidence shows that managers’ report feeling uncomfortable communicating with employees in general. Extensive interest in soft skills training jointly with operational internal communication tools such as social networks or intranet platforms can back managers in subduing barriers to communication.

Interpersonal coaching method: to leadership also produces a positive response, with those who feel that their leader is backing them as a person more likely to feel involved. Leaders who can respect and value that each team member is dissimilar, and recognize the best approach to deal with each different behavior and temperament, are important to nurturing a culture of engagement across the organization. Second is emphasis on an employee’s strong suit, and structuring upon these, as opposed to finding and refining flaws. A strengths-based beliefs permits team members to pick up more rapidly and yield a greater quality and quantity of work. This also permits the staff to use the best of their natural aptitudes and abilities.

Poor management and its negative impact:While the individualities of inefficient leaders can be extensive, from poor communication to absence of reliability or courage, the impacts of these can be very destructive to self-esteem of work-force and overall output. Poor management can also have indirect consequences for workplace modernization and the capability to adjust to fluctuating business environments. One of the direct impacts of bad management can be employee anxiety, which could be prompted by cases of stressed association with a supervisor or an impossible amount of work.

Impact on organizational performance:Given that leaders are answerable for an individual organizational department, any fall in effectiveness or output could have devastating repercussions for business performances. A leader arranges the framework to support each element to play its role to accomplish broader organizational objectives.  Poor performance in one particular area can possibly damage these strategic objectives. A bad or ineffective leader can also affect an employee’s opinion of the business’s overall vision and values. This could possibly trigger grief and may lead to a high turnover of staff, causing another damaging cost to the business. When this happens, a leader also has a major influence upon the culture and employer brand of an organization: affecting the ability to draw top talent, or how the business is observed by its customers and stakeholders.

In general debates and in some parts of the business management writings, leaders are often represented as pivotal for organizational success or failure. Leadership is effective for performance, because both the concept of leadership and performance are multi-faceted. However it is difficult to investigate how leadership affects performance over time. Empirical studies have mostly established positive connections between leadership and organizational performance, although impact extent differs significantly. In generic management studies and even in public management studies, cross-sectional designs with individual performance measures discovered strong effects. Future studies could successfully incorporate these methodologies with broader leadership theories, and possibly even examine their applicability for performance. This can also hint upon the public-private dissimilarities in leadership influences on performance, which we still know very little about. Sectors really matter as they can be understood as consisting of ownership, funding, and regulation, and that these aspects can have very different implications. Furthermore, it is important to keep the task constant in sector comparisons and at least pay attention to differences relating to for example service delivery versus manufacturing, which could possibly give very diverse opportunities for using leadership. The studies from the generic management literature have also shown that leadership can function very differently dependent on for example the level of the leader, leader characteristics, and/or follower characteristics. Most present studies have given somewhat little consideration to such representatives, and perhaps this would be a possibility of research for future studies of leadership and performance.

Existing studies have mainly focused on either broad self-assessed measure of performance or on relatively specific measures but also narrower measures related to effectiveness or user satisfaction. However, other features of performance such as cost efficiency and equity are also very significant performance measures for many organizations. A logical approach to examining leadership impacts on different performance dimensions would bring more refined knowledge on the genuine performance effects of leadership. Such studies could include various leadership styles as well as performance on multiple levels of analysis. While doing so, think of the pressures from common source bias and apply research designs that size leadership and performance from independent sources. The challenge is to systematically assess when, where, and how leadership affects performance.