The Importance Of Leadership In An Organization

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Organization is a factor that businesses face when organizing resources to achieve operational goals. The organizational process creates an organizational structure, and defines how tasks are divided, resources are deployed, and departments are created. There are three common organizational structures and those structures are the horizontal structure, the departmentalization structure, and the vertical structure. The vertical structure is composed of work specialization, which allows employees to specialize in a small specific task to increase efficiency. Work is then categorized in to different divisions also known as the division of labor. In the vertical structure chain of command exists. In the chain of command there are two types of principles, …show more content…

Leadership revolves around three different things: people, influence, and goals. Leadership is among people, involves the use of influence, and is used to complete goals. These are the four different types of leadership that is used in our environments today: Level 5 leadership, servant leadership, authentic leadership, and interactive leadership. A servant leader is a leader who serves others by working to fulfill their followers’ needs and goals as well as to achieve the organization’s larger goal. An authentic leadership is a group of individuals who know and understand themselves and inspires others with their honesty and authenticity. Interactive leadership is usually associated with women. Inclusion, collaboration, relationship building, and caring are valued in this type of …show more content…

Financial controls can be useful to figure out performance problems or if the organization is on sound financial footing. Financial statements provide information used for financial control of an organization. There are two major financial statements, a balance sheet and an income statement. A balance sheet shows an organization’s financial position with keeping in mind assets and liabilities at a specific point in time. An income statement sums up a firm’s financial performance for a given time interval. The income statement shows revenues coming into the organization from all sources and subtracts all expenses, such as: goods sold, interest, taxes, and depreciation. A manager’s knowledge of their financial state can help them manage their employees more effectively and be able to see what needs to be done to create more revenue, which is the ultimate goal in business, making a

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