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Essay

The impact of leadership in organizational performance

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All organizations around the world whether small firms or large are created with specific objectives: to make profits and create employment. To achieve the desired goals, leadership plays a major role in designing and shaping the destiny of any organization. Leadership therefore is a human factor or aspect behind growth of any organization that shapes organization to ensure best possible operational practices are performed to achieve desired objectives. Leadership is described as assisting a group in formulating and attaining organizational goals. Leadership has to do with affecting people in an organization to strive eagerly and excitedly towards accomplishing the group goals. Leadership is therefore a process in which an individual influences the group of people of people to achieve mutual objectives Businesses and other organizations are formed with clear objectives that ensure maximum profits to the owners and that they remain relevant over a long time. To be able to remain profitable, such business organization requires the best leadership. The leaders must be able to carry the vision and rouse the subordinates to work towards achieving the organizational goals. Leadership involves developing a clear vision for the organization, motivating the subordinates to strive and achieve the vision set aside which ultimately determines the performance of the organization. This essay describes three styles of leadership i.e transactional, transformational and democratic leadership styles on organizational performance.

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1. Introduction
• Define leadership and explain its importance in business and management
• Describe how leadership influences organizational performance
All organizations around the world whether small firms or large are created with specific
objectives, to make profits and create employment. To achieve the desired goals,
leadership plays a major role in designing and shaping the destiny of any organization.
Leadership therefore is a human factor or aspect behind growth of any organization that
shapes organization to ensure best possible operational practices are performed to achieve
desired objectives (Abasilim, 2024)
Leadership is described as assisting a group in formulating and attaining organizational
goals. Leadership has to do with affecting people in an organization to strive eagerly and
excitedly towards accomplishing the group goals (Abasilim, 2024)leadership therefore
involves a process in which an individual influences the group of people of people to
achieve mutual objectives (Abasilim, 2024)
Businesses and other organizations are formed with clear objectives which ensure
maximum profits to the owners and that they remain relevant over a long time. To be able
to remain profitable over a long time, such business organization requires the best
leadership. The leaders must be able to carry the vision and rouse the subordinates to
work towards achieving the organizational goals. Leadership involves developing a clear
vision for the organization, motivating the subordinates to strive and achieve the vision
set aside which ultimately determines the performance of the organization.
Leadership therefore is about establishing clear goals or vision for the organization,
sharing the vision with the group and harnessing the contribution of each member to
achieve the desired goals (Karabina, 2016). Leadership is considered to be observable
activities that occur in groups and involve the leader and followers. How the followers
work enthusiastically in the organization, the culture established determines the greatness
of any organization.
Businesses are profit generating entities in which a person or a group of people invest
money and other resources to make profit. They involve the owners and employees. The
owners develop the vision where they would like their businesses to be in future and
share the vision with employees or subordinates. Management is therefore a key
requirement for the business and organizations to thrive. Management involves specifics
skills like planning and budgeting (Nimisha Beri, 2018). It is about running the vision
envisaged by the leadership. Management is more of professional approach that ensures
that the organization attain desired objectives. Businesses that excel employ personnel
with the best management skills. These managers focus on implementing the vision
created by leaders strictly (Abasilim, 2024). Leadership and management are both
necessary for any organizational success. They both involve collaboration, working
towards common goals specified by the organization and getting the best out of the
employees in the organization. The type of leadership employed in any organization
determines the performance of the organization and its future survival and
competitiveness. Good leadership therefore must employ strategy and inspire
subordinates to work towards realizing organizational goals. Such leaders must be
knowledgeable, skilled and able to carry the vision of the organization like their own.

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27 november 2025
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