Leadership and Its Effect Towards Organization’s Performance and Employee’s Satisfaction

Topics: Leadership, Management, Situational leadership theory Pages: 9 (2750 words) Published: December 28, 2011
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Human Resource Management
(MRC 2033)

Leadership and its effect towards organization’s performance and employee’s satisfaction

PREPARED BY:
LEE YI LING (MR 101291)

INTRODUCTION
1.1 definition of leadership
Leader in an organisation act as a very important vessel which helps to lead the organisation towards a brighter future. A successful leadership management enables to create maximum effectiveness and efficiency and able to attain an organisation’s mission and goal.

A leader plays the biggest role in an organisation and serves to set and lead its employees towards the direction and goal for an organisation. To enable an organisation to attain its maximum achievement, a leader should continuously inspire and provide motivation to its employees so that he or she would be able to perform well. Furthermore, in an organisation, management of all employees is very essential. Good leadership must be able to communicate with the employees well to provide a comfortable and effective work environment for all the employees. If an organisation’s employees have high morale towards their work, it will in turn help to increase their working abilities to accomplish the organisation’s goal.

According to a European study conducted by Watson Wyatt, a good leader should be able to communicate effectively with its subordinates his/her expectations for the organisation target and goal. Moreover, a leader should define a specific target for its employees which are associated to the organisation’s goal and feedback also should be given to the employees as well.

Furthermore, in a study conducted by a global management consultant firm-Hay Group shows that there are altogether 75 criteria of employee satisfaction (Lamb, McKee, 2004). One of the most important criteria of employee satisfaction is associated with the leadership in the organisation. To employees, trust and confidence towards their leader is the most essential criteria. Leadership was the single most reliable predictor of employee satisfaction in an organization and a leader can win over an employee’s trust and confidence through efficient communication. Through effective communication, a effective leader enables employees thoroughly understand the overall business strategy and goal. Employees would have a better idea on how to carry out their work task to achieve the organisation’s business objectives through having discussion with their leader. A good leadership should guide and share his/her knowledge with its employees and understand what they are doing.

1.2 Leadership Styles
Leadership style is the manner and approach of providing direction, implementing plans, and motivating people. There are mainly three different kind of leadership styles which include authoritarian (autocratic), Participative (democratic) and Delegative (Laissez Faire).

Leader whom possess autocratic characteristic would tend to define very clearly on what is their requirement and how to fufill their requirement without getting any advice from any of its employees and does not allow their subordinates to defiant from their directions. Normally for organisation which follows authoritarian styles only have one-way communication between management level and its employees which is downwards communication. Employees are not allowed and unable to have their own views and opinions against their leader. This style is applicable when it is short of time to do group decision-making and in dealing with crisis management. However, the authoritarian style should not be implement as a long term basis and only use occasionally as this will greatly affects the employees job satisfaction, job creativity and as well as their performance in the organisation.

Next, in participative style, a leader would still maintain its authority of making the final decisions but he/she is involving more employees in the decision-making process and employees would feel being respected as their views and...


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Hooijberg, R., & Choi, J. (2001, September). The Competing Values Framework Of Leadership Roles. The impact of organizational characteristics on leadership effectiveness models.
Leadership. (2011, December 9). Retrieved December 1, 2011, from http://en.wikipedia.org/wiki/Leadership#Performance
Leadership Styles Versus Motivation
Poor Leadership In Motivating Poorer-Performing Staff. (n.d.). Retrieved November 24, 2011, from http://www.hrmguide.co.uk/performance/poor-leadership.htm
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Types of Leadership. (2008). Retrieved November 19, 2011, from http://www.vectorstudy.com/management_topics/types_of_leadership.htm
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