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Theory of Strategy
How Leadership Influences Organizational Effectiveness
Leadership is definitely not a ‘one-size-fits-all’ sort ofword. It is one of those words that is ceaselessly debatedand typically elicits a spectrum of individual opinions, from describing personality attributes, ‘position’ characteristics,or even behaviors. Whatever the arena – sports, politics, religion, business – a leader impacts and influences organizational effectiveness.
The million-dollar question, then, is how does leadership impact organizational effectiveness? James G. Bohn, Ph. D., attempts to answer that question through research described in his paper entitled, The Relationship of Perceived Leadership Behaviors to Organization Efficacy, recently published in The Journal of Leadership and Organizational Studies (2002, Vol. 9, No. 1). Through the use of surveys, interviews and empirical research, Bohn’s results conclusively indicate that leadership, or how leaders behave, has a direct relationship to overall perceptions of organizational effectiveness, or how organizations will perform. According to Bohn, “This is significant for leaders to understand, since they may be unaware of how their behaviors impact their employees.” Employees place their faith and trust in their leader’s capabilities, expecting the leader to provide: • A compelling vision of where the organization is going. • Consistency in pursuing and achieving goals. • Clear, concise communication, whether in general or in conveying their ideas and organizational direction. • Team building and orchestration. • Credible proof – a solid track record – of performance accomplishments.
Bohn concludes, “The capabilities of someone (a leader) who is competent, with a strong personal sense of efficacy, with the ability to “stay the course,” who has “been there; done that” in the midst of a group of people has considerable effects on the confidence of others. That confidence can be reflected in an overall sense that an organization

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