Essay on Leadership Styles and Effects on Corporate Culture

A leader is one who knows the way, goes the way and shows the way.” John Maxwell

Leadership is defined as a position or function of a person who leads the group. Effective leadership requires a set of personal qualities and skills, necessary for early diagnosis of the situation and knowledge necessary for choosing the most appropriate solutions. An effective leader can take the responsibility for not only his/her actions, but also the actions and outcomes of the subordinate group. Leadership plays the core role in the corporate culture and leaders can have a significant impact on effectiveness of a team and organization in general.

Advanced leadership skills are necessary for becoming a successful manager, able to hold the control over the situation, inspire and motivate the employees whenever it is necessary. The appointment as a manager does not necessarily bring trust and respect of the employees. Careful analysis and appropriate strategies aimed at establishing a personal rapport with every member of a group are needed to become a leader and an effective manager, as a result. Good managers find an individual approach and use their knowledge of psychology to create a healthy atmosphere in a group to improve the productivity of every employee and the team in general. The main task of a good leader is to connect the work of a team with the goals of the entire organization. Along with perfect understanding of the company’s targets and its vision, a good manager needs to balance the praise and punishment system with the talents of the subordinate employee to create a favorable atmosphere and maximize their outcomes.

Though certain inborn qualities can be useful, in most cases effective leadership is the result of ongoing hard work, self-education and training. Whereas there are informal leaders in all kids of social groups, ranging from primary school classes to international corporations, effective leadership for management can and should be taught. Thus, understanding the mechanisms of gaining trust and psychology of groups, the formal leaders would be able to enhance their effectiveness and reach the goals. Moreover, a leader should be aware of the different leadership styles and the specifics of the situations in which they would be most appropriate. Most leadership theorists agree that there is no such thing as a good or bad leadership style; there are only styles that are more or less appropriate for certain environments and specific groups. One of the major skills in a good leader is the ability to analyze a certain environment and choose the communication style and strategies that satisfy the needs of the group members.

Influencing the employees’ motivation, innovation processes and crisis management in a company, leaders play an important role in realization of the economic plans of the organization. There is a direct relationship between the organizational culture and economic effectiveness of a company. Leaders have the potential of shaping the way people behave and even think. Importantly, leadership can have long term effects on the effectiveness of the organization. Thus, first leaders shape corporate culture, and later on the corporate culture will shape leadership, influencing the appointment of certain individuals and creating certain expectations for them.

To be an effective leader, an individual needs profound knowledge of not only psychology of leadership and relations in a group, but also clear understanding of the company’s vision and long-term goals. By connecting the team’s motivation with the targets of the organization, leaders can have a significant impact on the company’s revenues.