Relationship between leadership and performance

Leadership is viewed as the ability to influence an individual or team in achieving desired results. It is a crucial factor in an organization’s success and a driving force in every business operation. Performance is accomplishing a task compared or measured with various standards, including speed, accuracy, or fulfilling an obligation. Leadership is connected to an organization’s performance in various ways, including the style and type used and character of a leader. The different leadership types indicate that they are designed to achieve an objective attached to an organization’s performance. Besides, styles such as autocratic, democratic, transactional, and transformational are strategic ways of achieving better performance than previously and meet environmental requirements. However, these styles have their downside, which also affects performance. For instance, autocratic is not practical for motivating employees, while democracy delays decision making. These factors ultimately affect performance. As a result, leadership is found to be a fundamental factor in performance.

 

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  1. Introduction

The connection between leadership and an organization’s performance plays an essential role in the success, growth, and development of international business. This connection has been identified by Singh et al. (2016) as the solution to achieving optimum outcomes from business operations. Apart from an organization’s leadership style, individual traits and inter-personal relationships play a crucial role in determining the performance. It is essential to note that leadership affects performance in different aspects of a business, such as finance, innovation, sustainability, and responsibility. A leader can also affect the performance of an organization through their character traits and personality. Typically, the performance of a company was linked to the capability of the leader. This paper discusses the relationship between leadership and organization by narrowing down to specific types and styles of leadership.

  1. Leadership type and organizational performance 2

There are different types of leadership employed in organizations to fit diverse situations. However, these types are utilized to change performance and produce better outcomes. However, it is essential to note that different types have been found to create different results and seem to be more effective than others. The kind of leadership that influences businesses’ performance includes directing, coaching, supporting, and delegating. According to Dirani et al. (2020), this leadership type plays a fundamental role in decision-making and impacts performance and overall growth.

 

3.1 Directing leadership

It is essential to note that true leadership abilities do not involve telling the workers or team what to do and how to do it. Directing is, therefore, seen as a management tool. However, this tool is useful in leadership when working with freelancers and determines an operation’s performance and outcome. Buba and Tanko (2017) argue that a telling style is useful when the leader has a clear idea of the work and outcome and therefore outsources for labor. Thus in terms of performance, the leader, in this case, plays an essential role through directing. However, this approach can have limits, such as may weaken a team culture and innovative spirit.

3.2 Coaching leadership

Coaching, on the other hand, involves visionary leaders who direct a team in achieving their goals. Therefore, if their vision consists of improving performance, they work towards better outcomes. However, their ideas and vision must be bought to be team members in order to achieve the desired result. Selling an idea and vision is achieved through effective communication, motivating the team to participate in a project willingly. Coaching is a significant factor that has been employed by leaders to improve the performance of a team and ultimately achieve the desired outcome. This type of leadership is helpful, especially in achieving the objectives set. However, Dello Russo, Miraglia, and Borgogni (2017) stated that this style works best in different situations, like when the team is full-time workers within an organization. Therefore it may be ineffective in applying on freelancers.

 

3.3 Supporting leadership                                                                                                    3

According to Zhang, Cao, and Wang (2018), collaboration is an essential part of improving performance and involves sharing ideas and creating solutions through suggestions.Chiniara and Bentein (2018) argue that this approach is aspiring primarily because every team member feels like an essential member, and their opinion is valued. Supporting each other to complete a project enhances teamwork, which in turn impacts performance. It is vital to note that supporting leadership is effective in leading managers. Here, the performance of the managers through the support of their leader is attributed to teamwork.

3.4 Delegating Leadership

This type of leadership is also effective when leading senior positions with the organization, such as managers and directors. Here, the leaders give full authority with little to no support or direction. Therefore the managers and directors, in this case, determine the performance of the organization. Delegation leadership is practiced in situations where individuals trust each other, and their decisions are aligned towards a common direction (Yoon, Kim, Shin, 2016). Therefore the performance of delegated members has a significant impact on the organization. Thus a CEO can empower managers that have proved effective through their reputation and experience. As a result, the performance is directly connected to the delegated leaders. If the owner of business delegates managers, they hold the key to performance through their decision-making abilities. How they run the business will determine the outcome.

 

  1. Leadership style and organization performance

            Performance is measured differently, and the style of leadership used in an organization may have different views on this subject. Sturm, Vera, and Crossan (2017) argue that a leader’s personality has a connection to the performance outcome. While some leaders portray traits of strictness, others are lenient.  The style of leadership is connected to individual characteristics. In order to understand the relationship between performance and style of leadership, this study focuses on autocratic, democratic, transactional, and transformational leadership styles. It is essential to note the benefits and drawbacks of this style and how they influence performance.

 

4.1 Autocratic leadership                                                                                                      4

According to Guo et al. (2018), autocratic leadership, also known as authoritarianism, involves the absolute control that a boss portrays. It is a situation whereby the leader is the only decision-maker in an organization. The team does not provide input but is expected to follow every order. Here, the performance is directly connected to the leader who makes all the important decisions within an organization. It is like working with one mind since all the decision is central. Besides every worker under this, leaders know their precise roles, so errors are reduced. However, as stated by Duanet al. (2018), this leadership style makes workers feel like their inputs are not valued. As a result, they can be demotivated, which increases the risk of rebellion. Consequently, it is essential to note that this type of leadership is effective in specific workplaces. For instance, a high-stake workplace where an error can result in a security risk or human life safety. Therefore, this type of leadership determines the workplace’s performance, but it is not applicable in all environments.

4.2 Democratic leadership

Democratic is seen as the opposite of autocratic, especially in decision making. This leadership style is also known as participative as the leader chooses to involve the team in decision-making (Fiaz, Su, Saqib, 2017). However, in most cases, the leader has the final decision based on the members’ input. Therefore establishing the decision on the different outputs plays an essential role in improving performance and fostering growth. Besides, the workers, in this case, feel valued and motivated. The diverse perspective is also an advantage that has a positive impact on performance. Further, since democracy involves teamwork, performance is also improved through collaboration and unison.

4.3 Transactional leadership

Transactional leaders are involved with the order and structure of an organization. Here, a business has a rigid structure with reward and punishment that drives the workers’ performance. It is essential to note that self-motivated individuals under this leadership style are most successful (Basri et al. 2017). Therefore performance is directly associated with this style since a structure has been designed for optimum results. Further, this style has clearly stated long- and short-term objectives that help in improving performance. Besides, the rewards and punishment also act as motivation to achieve better performance and foster growth and development. However, this style of leadership curtails flexibility, which is an essential aspect of today’s world. It, thus, reduces innovation, which may have an impact on

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long-term performance. It is essential to note how these factors are connected toorganizational performance. Hannah et al. (2020) argue that under transactional leaders’ employees may feel stifled may also impact individual performance and ultimate company outcome. Therefore, leadership style is connected to organizational performance.

4.4 Transformational leadership

This style involves constant transform and improvements that are working towards improving performance and operation output. Here, a leader pushes the team from their comfort zone. As noted by Hetland et al. (2018), employees are directed towards a clear vision: the leader’s or the organization’s mission statement. This style inspires innovative workers and a positive culture within the workplace. It is essential to note that a leader is also a role model with high interpersonal relationships under this style. Besides, the employees are motivated towards the vision and mission of the organization (Bonsu, Twum-Danso, 2018). Therefore the performance is improved through the teamwork and motivation of the workers. The team members are inspired to portray their best version while showing high self-esteem through mutual respect. However, according to Farahnak et al. (2020), transformational leadership can adversely impact the workers where they work towards attaining approval from the leader rather than focusing on performance. Therefore it plays an essential role in the overall performance of an organization through individual performance.

 

  1. Qualities of leadership and performance

Leaders portray different traits that have a diverse impact on individuals, departments, responsibility, and an organization’s sustainability. Obeidat and Tarhini (2016) argue that a successful leader is judged by different factors, including its overall performance. However, they may be considered based on the followers’ behaviors fostered by the style and trait portrayed. It is essential to note that qualities that show a good leader are also associated with good performance.The leader’s personality is a fundamental factor determining whether they are good or bad in their position. Personality is also a determining factor in interpersonal relationships. Some of the right personality characters include politeness, patients, courage, and loyalty, among others. According to Gandolfi and Stone (2016), highly influential people possess unique personalities that make them effective leaders. These traits play an essential

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role in performance as the leader is found to be a role model. A good personality is also associated with a positive attitude within a workplace, fostering better performance.

Other qualities that are associated with performance include emotional stability, professional competence, and creative thinking.  Emotional stability is connected with maturity, an essential character as a leader, especially in decision-making (Kilian, 2018). A leader should portray confidence, and emotion should not cloud their judgment. It is essential to acknowledge emotion as they make people humane. However, it is necessary to differentiate it from a business. Therefore, leaders who decide based on evidence or information presented and understanding their feelings have a better outcome.

Further, professional competence indicates that a leader is educated and skilled in their position. Therefore they can make a decision that impacts the performance of an organization. Professionalism has been identified as an essential trait in many organizations as a critical ingredient in achieving sustainability and interpersonal relationship (Gandolfi & Stone, 2016). It also fosters respect for an organization. Professionalism is also associated with qualities of purpose and responsibility.

Creative thinking, on the other hand, is a trait that fosters innovative performance. As Andriani, Kesumawati, and Kristiawan (2018) stated, a creative leader can guide and teach workers how to achieve better performance by designing structures and models to work better. Further, leaders with moral traits are also recommendable in improving financial performance and organization reputation. It is essential to note that financial performance is achieved by moral characteristics and effective communication skills and soundjudgment. These qualities effectively accomplish the goals and objectives of an organization, which connects with the overall performance. Other attributes that foster an excellent leader to improve an organization’s performance include integrity, flexibility, and sociability.

  1. Conclusion

Leadership plays a significant role in achieving the desired goals, which are better performance. As a result, the style or type of leadership used with an organization is, directly and indirectly, connected to overall and long-term performance. The performance in an organization can be the outcome compared to the previous period or employee improvement in their role. It can also be sustainability, finances, or organizational performance. Therefore

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a leader can influence all these aspects of a business and foster growth and development. There are different factors that a leader portrays that impact on the performance. For instance, they show traits and qualities that influence their role in leading and their followers acting towards better performance.(Gandolfi and Stone, 2016) Besides, the style they employ has a connection to the outcome, both short- and long-term. It is essential to note that the performance of the business measures a successful leader. Consequently, there is a strong relationship between leadership and organization performance. According to Sturm, Vera and Crossan (2017) also the demands for a leadership are expanding due to growing complexity of the global context and thus to ensure performance a leader must be capable of fulfilling numerous roles and responsibilities.

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