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Abstract

An effective leadership is very important for an organization’s success. What is effective leadership? Who are great leaders? How leadership affects the organizational performance, are few questions that has been the focus of many studies in the past and this papers also aims to explore them. The paper focuses on the concept of leadership, the importance of leadership, different leadership styles, the impact of leaders on employees and organizational performance and lastly it discusses the characteristics of a great leader.

The paper is based on both the literature review and findings of the data that was collected through questionnaires and interviews. Total 250 employees from five leading companies of Pakistan were used as a sample and random sampling technique was used so that there is no biasness. The finding of the data collected is presented through charts and graphs and the conclusion is based on both literature review and findings of the data.

Key words: Leadership, effective leadership, leadership styles, organizational performance

Introduction

The business environment has evolve over years and has become quite complex and competitive and for that reason businesses these days need management that can flexibly react to the constantly changing environment (Bass et. al., 2003).It is important that a business hire employees who can positively contribute to the business as well effectively manage the business. A business has different stakeholders and each stakeholder has its own way of evaluating business performance; an investor expects high return on their performance, employees expects satisfaction and rewards, owner expects high profits and customers expects products that satisfy their needs and wants at a reasonable price (Palus & Horth, 2003).Therefore, as different stakeholders expect different things from a business, it is very important that the business has a strong leadership that can effectively manage the business so that it’s perform as per the expectation of different stakeholders (John Wiley & Sons, 2004).

Literature Review

Leadership is a very important resource for a business. Different experts have come up with different explanations as to how leadership is an important resource for a business. According to Shartle (1956), leadership is an act to influence others.Haiman (1951) explains leadership as process by which other an individual influences, controls and directs the feelings, behavior or thoughts of other individuals. Moreover, according to Pigon, leadership is a process in which an individual controls other according to his will, insights and feelings in pursuit of specific cause. So, it can be said that leadership is a resource for a business that can be used to enable business to do what it needs do and what it should do (Palus & Horth, 2003).

It is very understand the importance of a good leadership in an organizations (Fisher, 2000).Not just the organization should ensure that it has good leadership but also the leaders should ensure that their leadership style is appropriate and is working in the favor of what their organizations

want to achieve. When you ask a group of business people that what is effective leadership according to them or what do they think that an effective leader should do (John Wiley & Sons, 2004). They will most probably come up with the same answers like leaders should make strategies, they should motivate, and they should set goals and objectives for the business and should create a culture that help businesses to achieve these goals and objectives (Boyne, Meier, O’Toole, & Walker, 2006; Osborne & Gaebler, 1992; Pollitt & Bouckaert, 2004). It is true, that a leader should do all this but how a leader manages to do this may vary from a leader to leader, from an organization to an organization or from situation to another situation (John Wiley & Sons, 2004).

Leadership Styles

Different leadership styles are used to effectively run an organization. Different leadership styles are used in different situations and leaders should know which leadership style should be used in a particular situation (Bass and Riggio 2006).A leader’s leadership style reflects his own interpersonal leadership style and he may have adopted it to achieve organizational goals and obejctives.According to Mott (1972), there are three type of leadership; democratic, situational and multifactor. In democratic approach there is open communication and the effective participation of members in decision making process. The situational approach takes into consideration conditional variables that may influence a leader’s action. These conditional factors include, leader’s positional power, the satisfying character of leader-member relationship and the number of group assignments ( Rafferty and Griffin 2004). Moving on, according to the multifactor leadership “task” and “expressive” are two factors that influence a leader’s action. The task factors include the activities that need to be designed to achieve the set goals and objectives of an organization and the expressive factors include the activities designed to connect all members socio-emotionally (Palus & Horth, 2003).

Furthermore, Jennening (1962) has also come up with different leadership styles. According to her, there are four different leadership styles; autocratic, democratic, bureaucrat, neurocrat. Several other experts have also come with different leadership approaches. All the leadership styles highlighted by different experts range from being authoritative to be very free. Hence, it can be said that leadership styles have three classification (Jennening, 1962).

The first one is autocratic approach.Autotcrat approach gives all power to the leader. A leader determines all the policies, goals and activities of the organization. Moreover, there is very less communication between the leader and the employees (Bass and Riggio 2006).He only interacts during meeting to tell what to do and how to do. Employees under the autocratic leadership are uncertain about what to do and they just do what they are dictated to do by their leader. The employees have no say in the decision making process and also have a very dry relationship with the leader (Epitropaki and Martin 2005). Also, there is structured set of punishment and rewards under this approach. There is no flexibility, what leader belief is wrong is wrong and the persons get the punishment for it and what leaders beliefs is worth appreciation is given the rewards ( Epitropaki and Martin 2005).

Next is the Democratic Leadership approach. It is also known as participative approach because it encourages employees participation in the decision making process. Though, the leader makes the final decision but he makes the decision after gathering all the information from employees. The leaders gives importance to the employees and develops trust in them which in return motivates the employees to work more efficiently and effectively. Team spirit and morale of employees is quite high under this approach (Bass and Riggio 2006. Moreover, the leader using this approach develops special plans to improve employees’ performance. The employees are given the authority to evaluate their own performance. It encourages employee to grow and recognizes achievements (Epitropaki and Martin 2005).

Then, there is free-rein leadership approach. It is also known as hands off approach. Under this approach the leader has minimal role to play (Epitropaki and Martin 2005). The employees have the freedom to whatever they feel like doing and they are not given by the leader. Employees have the authority to set goals for them, make decisions and solve their issues themselves.

Leadership style to be used

Though there are different leadership styles available but the key to effective leadership is that leaders knows which leadership should be used in particular situation (Morehouse, 2007).It all depends on the leader. Sometimes a leader has this domination nature and does not believe in changing his leadership according to a change in situations (Cown and Cown, 2005).

Moreover, the three broad classification of leadership highlighted above have their advantages and disadvantages and they should be used in accordance with the requirement of the situation. If we talk about autocratic approach then one thing that is majorly criticized about this approach is that it doesn’t give importance to employees (Cown and Cown, 2005).The employee morale is quite low under the autocratic leadership. And for that reason is highly criticized from the last thirty years. But this also true that autocratic approach is quite useful when there is poor management in a business. Like when there is no coordination between employees or departments within the organization or employees are not responding to any other leadership. And there is need of strict leadership that will make sure that they is discipline and employees do the work assign to them timely and effectively (Morehouse, 2007).

Moving on democratic approach is one of popular approach use these days. Organizations these days understand the importance of employees and one of their concerns these days is to how to motivate and satisfy their employees (Palus & Horth, 2003).Organizations understand that they need to come up with a leadership that believes in employees and involves them in the decision making process. Also, these days employees are quite skilled they can positively contribute to then decision making process. And this is done under the democratic leadership approach. But yes democratic leadership approach sometimes fails when employees don’t respond to it and needs a strict leadership to control them( Morehouse, 2007)

Furthermore, the third type of leadership highlighted above was free-rein leadership approach. This approach is most suitable when there is skilled and experience workforce that doesn’t need much of guidance and know how to effectively do their work.(Bass and Avolio, 1993).Also, when

there are outside specialist and consultant available for employee’s guidance. This type of leadership is not suitable when employees are not skilled and are inexperienced.

Leadership impact on performance

It is important that an organization has an effective leadership that makes sure that an organization is working effectively and efficiently to achieve its set goals and objectives. One thing that is very understand is that an organization cannot effectively and efficiently perform if its employees are not satisfied and motivated (Mihalcea, 2013).Employees play an important role in the success of an organization. In fact they are an asset for an organization. In order to get maximum output from them employees, it is important than an organization make sure that they have leadership that believes in its employees.

If a leader believes in its employees, this can lead to several benefits for the leader, employees and organization as well. For a leader, it leads to better relationship with the employees within an organization. It improves understanding with the employee’s .Even employees feel appreciated for their work and become more dedicated to their work (Iliescu et al., 2007). This improves efficiency in the organization. It reduces conflict between the leader and employees but, also by adopting this behavior leader tend to become more close to employees. Which bring them together as a team and work more collectively, this is beneficial for companies as this holds the companies together and brings positivity within the organization (DeGroot et al., 2000).Also, it drives employees work harder as they feel they are appreciated and are important for an organization. Furthermore, it bring creativity in the workforce as employees are involved more in task and discussion, new ideas are shared and new ways of doing task can be initiated which can lead to better results for the company. By listening more to employees, their need can be known, also what motivate them. A leader can further work on them as resolve issues within the organization, leading to less conflicts and time saving. Moreover, by being open to training and guiding employees, leader can play an important role in modeling employees and train them according to companies need (Vercelino, 2008).By their experience they can make them learn to perform better. All this will positively affect the company in performing better and building stronger workforce. This will improve their efficiency by being more effective at work. Humility is a trait which can resolve many issues at work specially in reducing employee’s absenteeism and turnover due to bad treatment at work (Vercelino, 2008).

Productivity is further improved as by listening to employees views many issues are resolved and conflicts are finished. As those issues are solved, many hurdles are removed from employees to perform at their full potential, further more by training in being open to help employees, leader polishes employee’s skills as well, they are taught how to be more efficient and effective within organization, which eventually leads to better performance (Iliescu et al., 2007). It also removes the awkwardness between leader and employees as it bring them together, by these employees get confidence form their leader and perform better, they know they would be appreciated for good work and they dot need to feel pressurized and its ok if they make mistakes, they should focus more on work than being panelized for their mistakes. This gives them more freedom at

work by democratic approach to leadership as leader adopts humility in their personality. It boasts employees’ confidence and motivation .Hence; they become more loyal and honest with organization and work harder, improving productivity for the company (DeGroot et al., 2000).

Moreover, this lead to increase motivation in employees; they become more dedicated toward their work and perform better, resulting in improved performance and more productivity (Vercelino, 2008).As employees are involved more, they feel affiliated to the company as well and work honestly towards it goals as well, by being more humble leader increase the confidence in employees, by listening more to them, employees gets rid of hesitation to talk to its leader and work more freely. It also lead to more efficiency as leader are open to train employees and share their experience, this guides employees to work in the right way and avoid mistakes, which leads to again better performances for the company (Mihalcea, 2013).By making they feel ok for their mistakes, employees get rid of the fear of being punished for leader as well and they work more comfortably. They can be themselves at work and discover their strengths as well. It changes the approach of working form top bottom to bottom up, which means that employees are involved in decision making and their opinion are considered in action rather than receiving order from senior and employees feeling alienated all the time. By this the workforce becomes more familiar with changes as they adopt more experimental approach at work and are ready for changes. This approach is practiced as employees are involved in decision and new ideas are generated, hence work pattern can be changed as well, which ever benefits organization.

Leaders may need many styles

Though, it is true that employees feel more comfortable and perform better under the leadership that believes in them and motivates and encourages them. But it is also true that sometimes there is a need of strict leadership just like the autocratic leadership.Becasue sometimes employees takes too much advantage of a lenient and a friendly leadership. In such cases, it becomes important for the leaders to become strict so that employees work performance can be improved Blake and Mouton (1964).

Many studies have proved that a good leadership reflects all leadership styles. The more flexible the leader is with its leadership style the better it is.if we take example of some successful leaders then one thing common in all of them is that all of them are quite flexible with their leadership style. They don’t have style checklist that they follow. Also, great leaders exquisitely sensitive to the impact they have on other and seemingly shape their leadership style to get the maximum output from them (Hendel, 2005).For example, they have the talent to understand what exactly is the problem with their employees is and how can there performance be improved. Also, such leaders donont generalize and believe that every individual is different and what might work for one might not work for another. Moreover, they also understand that it is not necessarily, that a same leadership style works in all situations and they change it according to the need of the situation (Hendel, 2005).

Methodology

This research paper aims to conduct an explotary research on the topic leadership. There has been a lot of research work already on Leadership and this research papers aims to further explore it.And for that reason qualitative approach was used. Qualitative approach is perfect for providing valuable information about a complex phenomenon; it focus on unexpected and unique events; it highlights the voice of those people who are rarely heard; it conducts explotary research to develop theries and produce hypothesis and even test them (Omar, 2015).Also, as this research required the opinions of different stakeholder regarding leadership such as employees, mangers etc, qualitative approach was the perfect choice (Omar, 2015).

Data collection

Questionnaires and interviews were used for the data collection. Online surveys were conducted that were filled directly in the Microsoft Excel sheet. The interviews were semi -structured and consisted of open ended questions and were conducted with the senior managers of the five leading companies of Pakistan for the purpose of data triangulation and validation.

Sampling technique

The sampling technique was random sampling so that there is no biasness. Five companies were selected before and to select sample from those five companies random sampling technique was used. As the sample size was to represent such huge population that consisted of all employees from all these five companies, random sampling technique was the best and most appropriate choice for that.

Sample size

Total 270 questionnaires were distributed. Though the sample size was 250 but extra 20 questionnaires were distributes so that in case of any questionnaires wrongly answered the sample size is not affected.

Findings and Discussions

This part of the paper covers the findings and interpretation of the data that was collected through questionnaires and interviews.

Fig 1.1

What qualities do you think that a leader should have?

courage

Inspirational

visionary

lead by expample

Stay calm under pressure

knowledge expert

Other

0 2 4 6 8 10 12

According to the findings the three most important qualities that a leader should have is stay calm under pressure, lead by example and should be inspirational.

FIG 1.2

Which type of leadership approach is most appropriate?

Sales

Autocratic DemocraticFree-rein mix of different leadership appraches

This pie charts shows that 40 percent of the population believes that there should be mix of different leadership styles, 30 percent believes that there should democratic, 10 percent believes that there should be free-rein leadership style and again 10 percent believes that there should be autocratic.

Which leadership style is most popular?

Fig 1.3

Auotocrat Democrat Free-rein0

10

20

30

40

50

60

70

famous leadership appraoch

Series 1

This chart shows that the most popular and widely used leadership approach is democratic approach, then is autocratic and then is free-rein.

Do you think leadership affects employee performance?

Fig 1.4

yes no0

10

20

30

40

50

60

70

80

90

100

leadership affects perfomance?

Series 1

This chart shows that majority of population believes that leadership has a huge impact on employee performance.

Conclusion

As the business world has become quite competitive and complex, it has become a necessity for organizations to have a strong leadership that can manage to run the organization under any circumstances effectively and efficiently. Leadership is not an easy task. A leader has this responsibility to effectively run the organization and satisfy all stakeholders. Different stakeholder have different expectation from the organization.Therefore,it is very important that the business has a strong leadership that can effectively manage the business so that it’s perform as per the expectation of different stakeholders.

Moreover, though the experts have come up with different leadership approaches and all they range from being authoritative to be very free. Hence, it can be said that leadership styles have three classification; autocratic, democratic and free-rein. Each of these there leadership approaches have their own advantages and disadvantages and are appropriate in different situations. But it is believed that democratic approach is the most widely used. Both the literature and findings of the study supports that.

Furthermore, a lot of studies and even this study states that it is important that leader should incorporate different leadership styles in his leadership. A great leader is always flexible; he changes his leadership approach according to the requirent of the situation. Moreover, a great leader also believes in its people, leads by example, stay calm under pressure and is inspirational.

Another very important thing is that a leader has strong impact on an employee’s performace.It is important that leader understand its employees and handles them accordingly. A leader can motivate employees and can boost their morale by believing in then and satisfying them which in return will help the organization with better efficient and effective employees.

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