The Interaction Between Leadership and Organizational Performance

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The interaction between Leadership and organizational performance

Change is an inevitable that we must be admitted. There is no any era changes fast and has severe impact as the present. The change made the calamity with many organizations unless even which organizations had been successful in the past. In the same time, the change, create new opportunities to many organizations. Therefore the excellent leader should be the leadership of the change (transformation or visionary leadership) and leadership is the essential essence to sustain a perfect organizational performance. Scholars suggested that effective leadership behaviors can sustain the improvement of performance when organizations face the new challenges (McGrath and MacMillan, 2000, as cited in Fenwick and Gayle, 2008)

Developing organization to be High performance organization is the goal or vision of the organization of excellent. Increased global competitor drive organizations to recreate themselves to compete on the base of innovation, productivity, cost, quality and customer requirement. PPT Public Company Limited, the petroleum authority of Thailand, has the vision to be the high performance organization by developing human and technology and now PPT is one of the most successful companies, The office of the public sector development commission [OPDC], (2003).

Leadership is the important determinant that has an effect directly to organization because all most organization comprise of diverse personnel, thereby engender variance in notion, value, belief and the objective in their lives. To lead and allure variant personnel to have the unity, it must depend on the leader in organization. When organizations seek effective ways to capacitate them to outperform others, a longstanding approach is to concentrated on the effect of leadership (Mehra et al., 2006, as cited in Fenwick and Gayle, 2008). This is because team leaders are trusted to play a pivotal role in shaping collective standards, helping team fulfill with their environment, and coordinating collective action. To combine people and processed and organizational performance is the key source of strength in company (Purcell et al., 2004, as cited in Fenwick and Gayle, 2008)

Several different theories of leadership meaning. For example, Terry (1990, as cited in Mahittikorn, 2007) state that leadership is using influence through personnel for the group achievement. Somboon (2003, as cited in Mahittikorn, 2007) infer that the meaning of leadership is International Influence structure, leading competence of the group leader engender action and alteration. While Kouzes and Posner (1995, as cited in Mahittikorn, 2007)) state that leadership is the technique to influence subordinate execute the command consistent with Stogdill (1986, as cited in Mahittikorn, 2007)). Lathikarn (1996, as cited in Mahittikorn, 2007) proposed an additional observation that leadership is an individual leads organization to accomplish the goal and can compound the indirect and direct authority to lead the personnel.

Some researchers, Gordon (1993) Bass and Avolio (1994) Cherrington (1994) Luthans (1998) and Robbins (1998), as cited in Mahittikorn, 2007, mention about the leadership indicator which can observe through charisma, inspiration, intellectual stimulation and individualized consideration. Cook and others (1997) and Daft (1998), as cited in Mahittikorn, 2007, researched that leadership is considered by creation of a new vision, mobilization of commitment and institutional of the change. While Dubrin (1998, as cited in Mahittikorn, 2007) concisely explained that leadership can particularize through vision, masterful communication skills, ability to inspire trust, able to make group member feel capable, an energy and action orientation, emotion expressiveness and warmth, romanticize risk, unconventional strategies, a self-promotion personality and minimum internal conflict.

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