LEADERSHIP

Organizational Leadership



Organizational Leadership

Introduction

In every organization, leadership is a quintessential element. 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. Organizational leadership is one of the most important factors that companies today must take into account when making decisions. In today's world where the only constant is change, these leaders must be able to innovate, motivate and carry out the objectives set by the company. Organizational leadership is a process in which leaders influence on followers, and vice versa, to achieve the objectives of an organization through change.

Discussion

Researchers have stressed the importance of organizational leadership as being fundamental to the success of firms, even more so for industries, which are global and dynamic. The global business environment is a complex and dynamic phenomena; as a result it becomes challenging for the firms of the industry to sustain their competitiveness on a continuous basis. The key to being a leader lies in the firm's ability to manage change as suggested by Olsen, West and Tse (1998). Given the forces of change that have impact on businesses globally, it is essential to identify firms' leadership characteristics that help in sustaining competitive advantage in a dynamic global/local environment.

The importance of studying the concept of leadership is exemplified by recent economic downturn. Virtually, every business sector or industry is facing turbulence, as a result of uncertainty and complexity of the business environment. In order to sustain the growth of organizations within the industry, firms will have to take leadership positions both at the macro level and at the micro level. This means that organizations would need to orient themselves to the environment and manage change strategically at the macro level, while at the same time emphasize on the notion of managing their human resources through effective leadership at the micro level.

Definition and Characteristics of Organizational Leadership

The notion of leadership has been developed at the micro level, i.e. in context of employees and managers; however, it is important to note that the same concept can be extended to the organization as a whole in terms of its posture with respect to the environment. For instance, the top management of a firm may seek to be proactive with respect to the environment and therefore emphasize on attaining a leadership position in a given local/ global market. As a result, the top management team may set policies and guidelines for management to pursue leadership at the functional level. This process is the result of a well conceived and structured plan conducted by the top management of the organization for improving the organizational effectiveness. In the context of how organizations can achieve leadership in a given industry, Olsen et al (1998) define leadership as the "process that ensures that the firm is constantly moving forward through the continuous assessment of its business environment, seeking new opportunities to lead the industry" ...