Leadership can either make or break an organization (Importance of Organizational Culture/structure)
"Management is efficiency in climbing the ladder of success. Leadership determines whether the ladder is leaning against the right wall." - Stephen R. Covey
Effective Leadership is an important aspect of Organizational Behavior as it affects the overall culture of the organization leading to employee/ customer satisfaction or dissatisfaction. In my opinion a good leader can make a huge impact by improving the organizational culture and hence opening the doors to success, however bad leadership can do the exact opposite leading to employee dissatisfaction, turnover, unhappy customers and hence loss of sales.
A good example of this can be seen in the Bloomberg business week’s article (http://www.businessweek.com/innovate/NussbaumOnDesign/archives/2007/01/lessons_from_home_depots_bob_nardelli--why_command_and_control_is_so_bad.html) stating how home depot’s CEO Bob Nardelli’s leadership style caused huge employee and customer dissatisfaction. Home depot was known for its great fuzzy-front-end, strong pro-consumer culture and intense beliefs/values, which were universal across the organization. Nardelli tried to bring discipline to Home Depot but the shifting of gears was shocking to a lot of people who were well accustomed to his predecessor Bernie Marcus’ laid-back style.
Nardelli was heavily criticized for his leadership style and methods he used during his tenure as CEO of Home Depot. The purpose of my paper is to describe different styles of leadership comparing them to Nardelli’s leadership style and the importance and the impact on organizational structure and culture, all affecting employee and customer satisfaction.
I will assess the different leadership syles:
1. Autocratic leaders
2. Democratic leaders
Nardelli used the Autocratic top-down, command and control approach changing the...
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