Organizational Leadership

Organizational Leadership

In every nonprofit or socially beneficial organization, leadership is a quintessential element. Although many organizations fit the classification of nonprofit when they are being distinguished from government and commercial counterparts, they are exceptionally diverse in terms of directives, goals, and missions. Each organization has objectives and goals, and the various methods by which these objectives are achieved (or not achieved) are often a direct result of leadership styles and attributes of the people in charge. Many, if not most of the prominent leadership theories applied to public and business organizations can be applied as well to nonprofit organizations. Along similar lines, leadership traits among CEOs, executive directors, and individual board members entrusted to lead and manage nonprofit organizations also vary greatly, and the methods and techniques they employ in guiding their organizations to achieve tangible outcomes are often related to their personal leadership styles.

Exploring Key Contemporary Theories:

A number of contemporary leadership theories have either been critical in the advancement of this line of thinking or offered unique contributions in a specific area. These theories emphasize the relational, collaborative nature of leadership. Several of these theories are reviewed in the following sections.

Servant Leadership:

The servant leader must stand for what is good and right, even when it is not in the financial interest of the organization. Social injustice and inequality should be opposed whenever possible. Even the weak and marginal members of society must be treated with respect and appreciation. Greenleaf proposed that providing meaningful work for employees is as important as providing a quality product or service for the customer. He advocated that business organizations should consider social responsibility as one of the major objectives, and the board of directors should take primary responsibility for evaluating and facilitating progress on this objective (Boal & Bryson, 1988).

Transformational and Transactional Leadership:

Transformational leadership and transactional leadership, like the theory of servant leadership, can be directly applied to the context of nonprofit and socially beneficial organizations. In the preceding section, servant leadership was defined as the commitment from a leader to serve others rather than pursuing his or her self-interest. The theory posits that service to followers is the paramount responsibility of leaders and the “essence of ethical leadership” and that servant-leaders are those who attend to the needs of their followers, help them become more willing to accept the responsibilities entrusted to them, and often learn about their followers' needs and are willing to share in their difficulties and frustrations) Transformational and transactional leadership.

Although transformational and transactional leadership are different from each other, they are often described in tandem because transactional leadership often extends into transformational leadership. This section will explain the two theories through a review of previous literature on the subject and will conclude with a discussion on their relation to nonprofit organizations (Bass & Avolio, 1990).

Transformational leadership involves the motivation of employees and members to perform normal expectations for meeting the organization's mission and for achieving organizational goals. It inspires staff and members to put aside personal ...