Introduction and definition of leadership, leadership styles, how to measure organizational performance, and also explained the relationship between leadership styles and organizational performance.

1. LEADERSHIP SKILLS AND ITS
IMPACTS ON ORGANIZATIONAL
CONTROL

2. CONTENT
 Introduction
 Definition of Leadership
 Characteristics of Leadership
 Leadership styles
 What is Organizational Performance?
 How to measure Organizational Performance?
 Leadership in Organization
 Relationship between leadership style and organizational
performance
 Conclusion

3. INTRODUCTION
 The role of leadership in an organization is crucial in terms of
creating a vision, mission, determination and establishment of
objectives, designing strategies, policies, and methods to achieve
the organizational objectives effectively and efficiently along with
directing and coordinating the efforts and organizational activities.
 In current time, many companies are facing problems related to
unethical practices, high labor turnover, poor financial performance,
etc. This may be due to the lack of effective leadership.
 The leadership styles chosen for the study are charismatic,
transformational, transactional, autocratic, bureaucratic, and
democratic.
 The reason behind choosing these leadership styles is the fact that
they are the most practiced leadership styles throughout the globe,
and if any new ideology is developed through the research, it can
improve these leadership styles further and bring further success to
organizations.

4. LEADERSHIP
Definition of Leadership :
Leadership is a process by which an executive can direct, guide and
influence the behavior and work of others towards accomplishment of
specific goals in a given situation. Leadership is the ability of a
manager to induce the subordinates to work with confidence and
zeal.
Leadership is the potential to influence behaviour of others. It is also
defined as the capacity to influence a group towards the realization of
a goal. Leaders are required to develop future visions, and to
motivate the organizational members to want to achieve the visions.
According to Keith Davis, “Leadership is the ability to persuade
others to seek defined objectives enthusiastically. It is the human
factor which binds a group together and motivates it towards goals.”

5. CHARACTERISTICS OF
LEADERSHIP
• It is a inter-personal process in which a manager is into
influencing and guiding workers towards attainment of goals.
• It denotes a few qualities to be present in a person which
includes intelligence, maturity and personality.
• It is a group process. It involves two or more people interacting
with each other.
• A leader is involved in shaping and moulding the behaviour of
the group towards accomplishment of organizational goals.
• Leadership is situation bound. There is no best style of
leadership. It all depends upon tackling with the situations.

6. LEADERSHIP STYLES
Some of the important leadership styles are as follows:
• Autocratic leadership style
• The Laissez Faire Leadership Style
• Democrative/Participative leadership style
• Bureaucratic Style
• Transactional Leadership
• Transformational Leadership
• Charismatic Leadership

7. AUTOCRATIC
LEADERSHIP STYLE
 In this style of leadership, a leader has complete command
and hold over their employees/team.
 The team cannot put forward their views even if they are best
for the team’s or organizational interests.
 They cannot criticize or question the leader’s way of getting
things done.
 The leader himself gets the things done.
Cont…

8. Pro: Decisions are often made quickly and strategically, and
teams are kept on track as a result.
Con: Employees can feel ignored, restricted, and—in the absolute
worst of cases—even abused.

9. THE LAISSEZ FAIRE
LEADERSHIP STYLE
 The leader totally trusts their employees/team to perform the
job themselves.
 He just concentrates on the intellectual/rational aspect of his
work and does not focus on the management aspect of his
work.
 The team/employees are welcomed to share their views and
provide suggestions which are best for organizational interests.
 This leadership style works only when the employees are
skilled, loyal, experienced and intellectual.
Cont..

10. Pro: This level of trust and independence is empowering for
teams that are creative and self-motivated.
Con: Chaos and confusion can quickly ensue—especially if a
team isn’t organized or self-directed.

11. DEMOCRATIVE/PARTICIPATIVE
LEADERSHIP STYLE
 The leaders invite and encourage the team members to play
an important role in decision-making process, though the
ultimate decision-making power rests with the leader.
 The leader guides the employees on what to perform and how
to perform, while the employees communicate to the leader
their experience and the suggestions if any.
 The advantages of this leadership style are that it leads to
satisfied, motivated and more skilled employees.
 It leads to an optimistic work environment and also encourages
creativity.
 This leadership style has the only drawback that it is time-
consuming.
Cont…

12. Pro: Creativity and innovation are encouraged, which also
improves job satisfaction among employees and team members.
Con: Constantly trying to achieve consensus among a group can
be inefficient and, in some cases, costly.

13. BUREAUCRATIC STYLE
 Here the leaders strictly adhere to the organizational rules and
policies.
 Also, they make sure that the employees/team also strictly
follows the rules and procedures.
 Promotions take place on the basis of employees’ ability to
adhere to organizational rules.
 This leadership style gradually develops over time.
 This leadership style is more suitable when safe work
conditions and quality are required.
 But this leadership style discourages creativity and does not
make employees self-contented.
Cont…

14. Pro: There’s plenty of stability. Since this is a systematized
approach to leadership, things remain constant even through
personnel changes and other shifts that threaten to rock the boat.
Con: It’s tempting to fall into the “we’ve always done it this way”
trap. This approach can be inflexible and neglect to leave room for
creativity or ideas from employees.

15. TRANSACTIONAL
LEADERSHIP
 The best way to understand transactional leadership is to think
of a typical transaction: I give you this, and you do this in
return.
 That’s really the basis of this leadership style. Transactional
leaders dish out instructions to their team members and then
use different rewards and penalties to either recognize or
punish what they do in response.
 Think of a leader offering praise to applaud a job well done or
mandating that a group member handles a despised
department-wide task because they missed a deadline. Those
are examples of rewards and punishments in a work setting.
Conti..

16. Pro: Confusion and guesswork are eliminated, because tasks and
expectations are clearly mapped out by the leader.
Con: Due to the rigid environment and expectations, creativity
and innovation may be stifled.

17. TRANSFORMATIONAL
LEADERSHIP
 Transformational leaders seek to change (ahem, transform)
the businesses or groups in which they lead by inspiring their
employees to innovate.
 These leaders are all about making improvements and finding
better ways to get things done. And as a result, they inspire
and empower other people to own their work and chime in with
their suggestions or observations about how things could be
streamlined or upgraded.
 Under transformational leaders, people have tons of autonomy,
as well as plenty of breathing room to innovate and think
outside the box.
Conti…

18. Pro: Leaders are able to establish a high level of trust with
employees and rally them around a shared vision or end goal.
Con: In environments where existing processes are valued, this
desire to change things up can ruffle some feathers.

19. CHARISMATIC
LEADERSHIP
 Charismatic leaders have magnetic personalities, as well as a
lot of conviction to achieve their objectives.
 Rather than encouraging behaviors through strict instructions,
these leaders use eloquent communication and persuasion to
unite a team around a cause.
 They’re able to clearly lay out their vision and get others
excited about that same goal.
Conti…

20. Pro: Charismatic leaders are very inspirational and effective at
getting an entire group invested in a shared objective.
Con: Due to their intense focus, it’s easy for these leaders to
develop “tunnel vision” and lose sight of other important issues or
tasks that crop up.

21. WHAT IS ORGANIZATIONAL
PERFORMANCE
There are possibly as many interpretations of the term
organizational performance as the studies that have used the
construct. Luo et al. (2012) who conducted a meta-analysis of
organizational performance suggested that it should be measured
in economic and operational terms:
The economic performance looks at financial and market
outcomes which assess the profits, sales, return on investment for
shareholders, and other financial metrices.
The operational performance, on the other hand, focuses on the
observable indices like customer satisfaction and loyalty, the
firm’s social capital, and competitive edge derived from
capabilities and resources.

22. HOW TO MEASURE
ORGANIZATIONAL PERFORMANCE ?
There are various way how organizational performance can be
measured. We have a look at some of the most prominent and
effective ones.
 As a measure of survival and growth
 As a measure of good fit with environment
 As a measure of relevancy

23. As a measure of survival and growth
 One of the clearest definitions of Organizational performance
describes it in terms of growth and survival of the firm (Etzioni,
1960; Chandler and Hanks, 1993).
 In this definition, a firm may consider its performance to be
effective if it is able to meet its prescribed goals and continue
to improve.
 The weakness in this approach is that it fails to account for the
external and internal environment of the firm.

24. As a measure of good fit with environment
 This limitation has been provided for by Lorsch (1970) who
believed that firms who are able to find the right fit between
their environmental demands and internal capabilities and
resources are able to perform better.
 A similar position was adopted by Lupton, Gribbin and
Warmington (1977) who defined good organizational
performances to be those which were able to achieve high
productivity and employee satisfaction with low turnover rates
and costs.

25. As a measure of relevancy
 Though this definition addresses the systems view of
organizations, it still fails to consider the volatility of modern
markets and how they pressurize firms to evolve continuously.
 This critical aspect, termed relevancy by Jenatabadi (2015), is
found in studies from the twenty-first century.
 Modern organizations are no longer required to only fulfill the
demands of their investors and employees, but an entire gamut
of stakeholders (Adam Jr, 1994; Harrison and Freeman, 1999).

27. LEADERSHIP IN ORGANIZATIONS

28. QUALITY AND ROLES OF A GOOD
LEADER IN AN ORGANISATION
PERFORMANCE
 The role of a leader in an organization is to help identify
worthless goal, help devise appropriate strategies to achieve
such goals and provide direction and motivation for the group
so that agreed upon goals can be attained.
 The leader must recognize the value system that operates in a
variety of work group and situation.
 They must listen to questions as well as provide answers. He
must comprehend the difficulty of being a subordinate so as to
understand the fear.
There are some qualities that a good leader must possess in
order to enhance the affairs of an organization; some of such
qualities are as follows:

29.  Ability to be objective: Leaders should examine each situation
before making decisions. Objectivity is the ability to look at
issues and problems rationally or impersonally without bias.
 Ability to be perceptive: This entails the ability to observe or
discover the realities of one’s environment. Leaders in
organization need to know the objectives and goals of the
entire organization so that they can work to support these
goals.
 Ability to establish proper priorities: The ability to recognize
what is important and what is not. A leader is to know which
alternatives are worthy of consideration or not

30.  Human relations: This is otherwise called interpersonal
relationship. A leader should be strong in his human relations
attitude, especially when his job is done through the
subordinates. Developing and understanding the appropriate
human relations skills will earn the leader healthy respect. Ojo
(1998) believes that based on the human relations theory, jobs
should be designed and work scheduled to ensure that jobs
provide workers with meaningful work sense of responsibility
as well as opportunity to participate in decisions affecting their
job.
 Crises manager: A leader should be able to settle disputes or
differences among his employees as well as issues which
impairs employees output.

31.  Effective decision: The ability of a manager to plan strategically
depends on his effective decision making. Effective decision
making in a contemporary management involves defensive
avoidance, collecting more and more information about the
cost and utility of each alternative and comparing them
systematically in order to choose the most effective costs.

32. RELATIONSHIP BETWEEN
LEADERSHIP STYLES AND
ORGANIZATIONAL PERFORMANCE
There is a considerable impact of the leadership styles on
organizational performance.
The leadership style influences the culture of the organization
which, in turn, influences the organizational performance.
The organizational culture and performance are related to the
type of leadership style (Klein, et al., 2013).

33. TRANSFORMATIONAL LEADERSHIP
STYLE AND ORGANIZATIONAL
PERFORMANCE
Transformational leadership style focuses on developing the
followers and considering their needs.
The managers that focus on transformational leadership focus
particularly on developing the overall value system of the
employees, development of moralities, skills and their motivation
level.
The transformational leadership acts as a strong bridge between
the followers and leaders, to develop clear understanding
associated with the motivational level, values and interests. Bass
and Avolio (1994) stated that transformational leadership
demonstrates the superior leadership performance.

35. CHARISMATIC LEADERSHIP STYLE
AND ORGANIZATIONAL
PERFORMANCE
Charismatic leadership is considered to be one of the most
successful leadership styles, where the charismatic leaders develop
a vision and the followers are asked to follow and execute the vision.
The charismatic leadership invites innovation and creativity and is
considered to be motivational for the employees.
But the major drawback of this style of leadership is that the followers
are totally dependent on the leader and once the leader leaves the
organization, they become direction-less.
The problem worsens as charismatic leaders do not train their
subordinates to act as their replacements in the future. This
leadership style results in “happy followers, but few future leaders”.

37. TRANSACTIONAL LEADERSHIP
STYLE AND ORGANIZATIONAL
PERFORMANCE
A leader is known as a transactional leader if he/she is always
willing to give something in return .
This can include a number of things like promotion, pay raise,
performance reviews, new responsibilities etc.
The major problem with this type of leadership is the expectation.
Hence, transactional leadership can be defined as the exchange
of targets and rewards between the management and the
employees (Ojokuku, et al., 2012).
The study by Longe (2014) revealed that transactional leadership
style has a positive impact on the organizational performance.
This leadership style particularly helps in creating an environment
that is optimal for performance and also articulates the compelling
vision that enhances the overall organizational performance

39. DEMOCRATIC LEADERSHIP AND
ORGANIZATIONAL PERFORMANCE
Democratic leadership as the leadership in which the decision-
making is decentralized and is shared by all the subordinates.
In the democratic leadership style, the potential for weak
execution and poor decision- making is high.
However, the democratic leadership is also known to motivate the
employees to perform better, as their views and opinions are
valued.
The study by Elenkov (2002) indicated that the democratic
leadership has a positive impact on organizational performance.
The democratic leadership allows the employees to make
decisions along with sharing them with the group and the
manager.

41. AUTOCRATIC LEADERSHIP AND
ORGANIZATIONAL
PERFORMANCE
Autocratic leaders are classic and bossy in nature.
The autocratic leaders want their subordinates to work according to
them. Typically, autocratic leaders retain the decision -making rights with
them (Obiwuru, et al., 2011).
The autocratic leaders force their followers to execute the services and
strategies according to the narrow way
The author stated that an autocratic leader is the one who determines
the activities, techniques and policies to the employees and expects the
employees to follow the same.
In addition such leaders do not have much faith on their followers.
Bhargavi and Yaseen (2016) suggested that the autocratic leadership
style has a positive impact on the organizational performance.

43. BUREAUCRATIC LEADERSHIP
STYLE AND ORGANIZATIONAL
PERFORMANCE
Bureaucratic leaders influence the people under them to follow
the policies and procedures designed by them.
The leaders are strongly committed to their processes and
procedures but not to their people.
This is the reason why they appear to be aloof. This method is not
very effective as it does not lead to the development and
motivation of the employees.
The bureaucratic leadership style does not impact the employee
as well as organizational performance significantly.

45. CONCLUSION
This study has focused on the impact of leadership styles on
organizational performance.
The focus was on only six types of leadership styles-
transformational, transactional, democratic, charismatic,
bureaucratic, and autocratic.
The transformational, autocratic and democratic leadership styles
were found to have a positive influence on organizational
performance, whereas, the transactional, charismatic and
bureaucratic leadership styles were found to have a negative
impact on the organizational performance in the organizations
taken for study.

46. This study reveals that organizational performance is associated
with the leadership style and they have both a positive and a
negative impact on the performance.
It is important for a leadership style to offer opportunities to
employees, offer a sense of belonging along with allowing them to
participate in the decision -making.
In this context, it is recommended that organizations should focus
on using the transformational and democratic leadership styles in
the organizations so as to improve the organizational
performance.