The Influence Of CEO Leadership Style On Organizational Performance

2810 Words6 Pages
bulb-icon

Recommended: Leadership influence on organizational culture

1 Introduction
Variability in organizational performance could result from either internal or external factors as organizations are environment serving and dependent (Ansoff and Sullivan, 1993). The leadership style exhibited by the CEO who sits at the apex of the organization and the key decision makers determine organizational efficiency and effectiveness which have a bearing on the level of performance (Stogdill (1957). How the CEO through his leadership style influence performance could be subject to a number of factors ranging from level of employee commitment (Bass (1990) and corporate governance (CG) structures (Pearce et al, 2012).
Employee engagement is an elusive force that motivates an individual to achieve supernormal returns …show more content…

This paper, therefore, seeks to extend the frontiers of knowledge by exploring and documenting existing literature in the relationship between CEO leadership styles, CG structures, employee engagement, and their individual and joint influence on organization performance. This arises from felt need to collate extant evidence of these relationships and establish gaps for further study.
The paper also proposes a conceptual model that can guide empirical research to address identified gaps in knowledge. The paper reviews literature along its conceptualization regarding influence of CEO leadership style on organizational performance. It further highlights on the intervening and moderating role of employee's engagement and CG structures on the relationship between CEO leadership styles and organizational performance.
2 CEO Leadership …show more content…

The Cadbury Committee (1992) defined CG as a system, by which companies are managed, controlled and power exercised by executive elites in the management of resources for sustainable development (OECD, 2004). It also involves a set of relationships in an organization between its management, board, shareholders and other stakeholders (OECD, 2004). The CEO as the ring leader define the goals the organization pursues develop control systems that guide and monitor the organization's destiny. They construct an organizational structure and rules that appropriately govern the tasks to be undertaken and motivate their subordinates to complete these tasks (Kehinde, et al. 2012). The CEO as the ring leader is the one who designs and implement by way of instructing the subordinates, enthusiastically, motivating, encouraging and guiding them towards the achievement of the set goals. The CEO as the ring leaders sits at the apex of Governance structure and is the ultimate decision maker on how best the future state of affairs can be attained through the governance structure (Pettigrew, 1992). Corporate governance structure provides an opportunity through which different leadership styles could be explicitly exhibited by the executive as he seeks to promote efficiency, effectiveness, transparency,

Show More
Related

  • Del Rio Foods Analysis

    1202 Words  | 3 Pages

    The CEO needs to create a corporate culture. His culture will determine what people should be doing and what should do not be trying. He can decide who will stay, who will leave, and how the job will get done. Culture starts with the boss. He can decide how he wants people to act and start modeling the behavior publicly. STOPPED HERE…!!!:)

    Read More

  • Walgreens Leadership Styles

    1002 Words  | 3 Pages

    Across the globe, there are CEO’s, managers, and several other individual’s in leadership-type roles that have the expectation of making their company successful in the eyes of the investors, the employees, and the customers that they serve. This may be measured by a company’s gross profitability, employee engagement or overall customer satisfaction. Most companies have leadership models and strategies in place that leaders are expected to use in order to drive the expectations of the company while maintaining consistency across the business. In an effort to examine various types of leadership styles, I have conducted interviews with two individuals that are or have been previously tasked with leading their teams and their company towards success.

    Read More

  • Control And Leadership

    1061 Words  | 3 Pages

    According to the text, “Control is defined as any process that directs the activities of individuals toward achievement of organizational goals. It is how effective managers make sure things are going as planned (Bateman, pp 520, 2007).” The combination of these two concepts, leadership and control help formulate an ideology that becomes an integral part of the success or failure of any business entity. This paper will give Team D an opportunity to delve into Sears Holdings’ leadership and control mechanisms. The focal point of this paper will be to identify the current CEO of Sears Holdings, and gain insight on his background, i.e., training, education, and previous employment. To identify his style of leadership, evaluate the effectiveness of this leadership style based on Sears Holdings’ performance, and to explain the various control mechanisms used in the organization to determine the effectiveness.

    Read More

  • Gender Diversity in Corporate a Governance Report

    823 Words  | 2 Pages

    Corporate governance implies governing a company/organization by a set of rules, principles, systems and processes. It guides the company about how to achieve its vision in a way that benefits the company and provides long-term benefits to its stakeholders. In the corporate business context, stake-holders comprise board of directors, management, employees and with the rising awareness about Corporate Social Responsibility; it includes shareholders and society as well. The principles which...

    Read More

  • Leadership Development Case Study

    1056 Words  | 3 Pages

    It holds that various situations require different leadership styles to result in effective outcomes. According to this school of thought, it is the assessment of the competence, as well as the commitment of the leader’s subjects that makes the whole practice a success. As a result, a leader should access the two factors before deciding on either directive or supportive form of management.

    Read More

  • Pros And Cons Of Leadership Management And Organizational Culture

    717 Words  | 2 Pages

    Leadership, management, and organizational culture are terms used in organizations referring to how their corporation are structured and facilitated. Being an effective manager and a good leader are key elements for a successful business. This essay is to give a basic understanding of leadership, management, and organizational culture. This essay will also reflect on personal experiences as well as discussing some advantages and disadvantages.

    Read More

  • Leadership And Stodgil's Theory Of Leadership

    1022 Words  | 3 Pages

    Leadership is defined by Armstrong (2012) as a process of inspiring people to do their best in order to achieve the desired result, this involves developing and communicating a vision for the future, motivating people and securing their engagement. So, the efficiency in resources mobilization, allocation, utilization and enhancement of organizational performance depends to a large extent on leadership styles, among other factors (Obiwuru et al., 2011). A leadership style refers to a specific manners applied by a leader to motivate his or her subordinates to accomplish the objectives of the organization. Okumbe (1998) founding on leadership conducted at the University of Iowa USA in 1993 investigated the impact of the three common leadership

    Read More

  • Leadership Styles: Robert R. Blake and Jane S. Mouton

    862 Words  | 2 Pages

    A particular approach to the idea of leadership style is provided by ROBERT R. Blake and JANE S. Mouton. Blake and mouton managerial grid will be showed in the figure below reflect a theme that is common in many approach to leadership. That theme is that effective leadership requires attention to both task and people. We saw the theme in the Ohio state leader behavior dimensions of initiating structure and considerations. Likert also develops this theme in his theme research when he discusses job centered and employees centered supervision.

    Read More

  • Porters Analysis- Albertsons

    1205 Words  | 3 Pages

    CEO Johnston also has plans to bolster the company’s leadership with the best minds available and also use motivational techniques to invigorate his employees. These ideas show the character of the CEO in enhancing productivity from his work force.

    Read More

  • Ethical Leadership Issues

    2793 Words  | 6 Pages

    Leadership styles and practices, one of the most vital aspects determining productivity in organizations, is truly what sets the standard for every level of management within a company. If a proper leadership style is not chosen and followed to lead a team within an organization, there will be no one to follow and the team will certainly not be successful. The repercussions of poor leadership will certainly make a drastic difference in a company. This can include the needs of not only employees, but customers, shareholders, partnership companies and supplier needs to name a few. Not meeting these needs are certainly grounds for decreased profits overall in the long run.

    Read More

  • Does Leadership Make A Difference Essay

    711 Words  | 2 Pages

    According to Josh Bersin, it isn’t the leader but the leadership strategy that makes the difference (2012). In his article, “It’s not the CEO, it’s the leadership strategy that matters, Bersin offered why several newly hired CEOs for organizations like Apple have managed to “pull it off” (2012, p.1). In other words, be successful after replacing the previous CEO. Moreover, after conducting extensive research on companies and their correlated business performance, Bersin identified several best practices which include “high-performing organizations directly link leadership strategy to business strategy” and “high-performers develop leaders at all levels” (2012,

    Read More

  • The WorldCom Accounting Scandal

    1587 Words  | 4 Pages

    Nottingham Trent University. (2013). Lecture 1 - An Introduction to Corporate Governance. Available: https://now.ntu.ac.uk/d2l/le/content/248250/viewContent/1053845/View. Last accessed 16th Dec 2013.

    Read More

  • Leadership and Organizational Culture

    1813 Words  | 4 Pages

    House et al. (2007) discovers that leadership and Organisational culture are closely linked together as leaders influence the culture of their organisations. Researches talk about a range of leadership definitions but it is not easy to define. (E.g. Western, 2008; Yukl, 2010). However, Cohen (2009) critically analyses definitions from Dracker (1996), Eisenhower (1969), Northouse (2004) and finally summarised the definition of leadership constitutes five elements. First of all, ask question to set direction, which means effective leaders need to listen to followers’ voice respectfully and then share the common goals and ideas with them. In addition, leaders need to seek insights and allocate resources optimally; act ethically; allow their employees to work in a conformable and most effective way. This essay will explain different leadership styles and how they influence the organisations with examples of organisations and leaders with main focus on well-known entrepreneur: Sir Alan Sugar. He grows from nothing to incredible success (£ 730 million), is a legend in the UK business history; his reality TV show “The Apprentice”, a great entertainment for recruitment appeals to the public without reasons. However, he as a person is controversial amongst people, probably due to his leadership style as bullying or harassment (destructive). There are four schools of leadership styles: Trait, behavioural, contingency and transformational. Nevertheless, in the case of Alan Sugar, trait and transactional styles match him which will be illustrated following in detail.

    Read More

  • Leadership and Governance Problems at Hewlett-Packard

    1699 Words  | 4 Pages

    Whether or not a company is attains acclaimed success lies not in the fact that it spends huge amounts of money on Research and Development, rather, and as stated by Bauer and Erdogan (2010), success is determined principally by the people within hat specific organization; they are the assets whose output resonates wit he company’s success. However, while this is an established fact, it is also important to state that both the organization and the people who constitute it mutual impact arriving at collective success. Therefore, as Bauer & Erdogan (2010) continue to assert, it is necessary to understand how people relate at work both at the individual and group levels, and how the organization is impacted by this interrelationship. This is what Bauer & Erdogan (2010), define as organizational behavior. It informs on what is wrong, and what is correct; essentially assisting one as an employee become ore engaged in work. Leadership or governance is one of the constituent components of organizational behavior. More often than not, it is usually associated with power, ethos, and cultural inclinations of the organization. This paper seeks to examine in-depth, management problems associated with leadership and governance at Hewlett-Packard and how it impacts on the company’s organizational culture and behavior.

    Read More

  • Importance of Leadership in an Organization

    1833 Words  | 4 Pages

    Leadership is one of the most important facets in organizations. In most cases, leaders act with respect to organizational culture as well as the codes of conduct that determine the manner in which leaders relate with subordinates. Leadership entails the use of effective communication skills to get activities done in the workplace and to ensure that employees shelve their individual interests for the sake of their organizations’ shared targets. It is the role of leaders to ensure that consumers attain high quality products and services by making certain that members of their firms’ workforce are fully motivated to work effectively and utilize resources in an efficient manner (Bass, 22). With the increasingly sophisticated nature of the corporate world, leadership should not be based solely on the desire to control and coordinate affairs within the workplace, but leaders should also exhibit positive examples and continually monitor the changing trends in corporate governance to initiate the most relevant guidelines. Competitiveness can only be attained when leaders are in a position to set the right standards in their firms and coordinate affairs appropriately by understanding consumer and employee needs.

    Read More

More about The Influence Of CEO Leadership Style On Organizational Performance

Open Document