It act of inspiring the doings of

is seen that leadership has been independently linked to organization performance.
Many researchers have been examining this and in this essay, it will be
discussed how different leadership theories can make a difference to how a
business or organisation perform. In the article ‘New York: Free Press’
leadership is defined ‘As the procedure or act of inspiring the doings of an
organized group in its efforts toward goal setting and goal achievement.’
(Stogdill, 1950: 3) and another way of defining it would be that leadership is
of guidance between the leader and those who are following him. Different
methods are linked to leadership and the theories being discussed will be
transactional, transformational and the organic leadership theory. There are
many leaders out there from the past and present who are seen to be a leader who
uses one type or more of these theories to benefit their business. From the
‘ST. Thomas university’ online page about transaction leadership an example was
given to who is a transactional leader and this was Bill Gates of Microsoft. These
theories have been linked in many cases and scenarios with organisational
performance and these theories have been said to have an impact in both a
positive and negative way depending on the organisation and what leadership
theory they use. The essay will argue how these different leadership theories
make an impact on organisational performance either a positive or negative way.
First speaking about transactional then transformational and lastly organic
leadership. The theories will then be summarised and an end conclusion will be
given to how leadership makes a difference to organisations performance and
what we have learnt from the theories.


I will discuss transactional leadership, also known as managerial leadership.
According to the journal, The Leadership Quarterly, ‘the transactional
leadership aids businesses to reach their present goals more competently by
linking job performance to valued rewards and by ensuring employees have the
resources needed to get the job done.’ (Zhu et al., 2005). This states that
employees work more effectively when they know that they are going to be
rewarded, however, this has to go hand by hand with them being also equipped
with the right resources in order to fulfil them. Examples of rewards
transactional leaders So, if the two value rewards and resources necessary for
employees are met then a business should perform to its highest potential,
resulting in maximum output. Examples of rewards to workers could be a bonus,
which ensures workers make their targets and this makes an end result of
improving the performance of an organisation. However, in ‘London Sage’ it is
argued that there is no single leadership theory that is the most effective. In
its place, an institute should approve the leadership theory that suits the
situation which will best benefit the organisation Avery’s (2004) This states a
transformational theory will only work in some cases and organisations as it
depends on if the reward encourages the workers to work to their full
potential. As a result, showing it depends on which leadership theory you use
in a situation will only make a difference organisational performance.

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we are going to discuss transformational leadership. Transformational
leadership is a leadership which makes employees motivated and the leaders
understand how to merge them into complete units that work well together. It is
stated in ‘Management Today’ that the ‘visionary and inspiring skills of
transformational leaders inspire followers to provide superior performance’
(Nicholls, J. 1988). This means leaders use different methods to encourage and
motivate workers to ensure they are working to the highest of standers, as they
keep the workers motivated through using inspirational skills. Therefore,
linking transformational leadership to organisational performance because
leaders use inspirational skill to make each worker advance to a higher level
of morality and motivation which allows an organisation to perform to the
highest performance showing that leadership is linked to organisational
performance. However, this theory has been questioned as in the article on
‘California Management Review’ it states by scholars like Nadler and Tuschman
(1990) ‘Motivation can be withdrawn if employee become reluctant to agree with
a visionary leader’s belief and ideas’ This states that employees sometimes
might not be motivated by just a leader’s inspirational skill and may not be
encouraged to work to their highest potential just because the leader says to.
So, unless the employees share the same vision or are persuaded to believe in
the leader as the leader uses inspirational skills it might not persuade all
workers to be motivated. This means they need workers who are attached and
share the same vision as they do, so they can contribute to making the
organisation perform to the highest of standers for the organisation to perform
the best. Otherwise, they will not listen and be motivated enough and this will
cause the business not performing to its best



the last theory which suggests leadership can make difference to organisational
performance is organic leadership. from the article ‘MIT Press’ it talks about
organic leadership and that ‘This theory relies on shared contributions, where
team associates graft together in whatever roles of power and control they may
have, not based on position power ‘(Hirschhorn, 1997) This means where an
organisation adopts organic leadership, employees work together as part of a
unit in determining what should be done and what shouldn’t in the organisation.
Rather than putting all trust on one person to make all the decisions and take
responsibility for all workers, an organisation where there is organic
leadership will have many leaders contributing to decisions. This will make a
difference to the performance of every member who is a leader will have an idea
to ensure the organisations performs at its best. Also, organic leadership
acknowledges for people with dissimilar degrees of knowledge on current issues
to join together and be recognised by the group as leaders. Whereas other
theories put accountability on one leader, under organic leadership
responsibility and accountability are shared as all members were responsible
for the decision and all members are seen as leaders. This will cause less
chaos in the organisation as if any problems do occur all members of the group
can help to solve the problem instead of only one person. However, researchers
have seen problems with the theory organic leadership as it says from the
article ‘Simon and Schuster’ that it ‘disputed that the disadvantage of organic
leadership that encourages autonomy, freedom and authorization could lead in
loss of power and added doubt’. Kanter (1989) This means due to so many leaders
having the power to make a final decision these leaders could dispute and argue
over what decision should be made, as different leaders have different belief’s
and ideas which could clash together and this resulting in a negative impact to
performance because no decisions aren’t made at the end. Furthermore, there has
to be a trust between each other to solve problems and make choices for the
benefit of the organisation. Enterprises who normally do use organic leadership
tend to have leaders with similar ideas, same characteristics and shared
culture, so problems like this may be highly unlikely to cause a difference in
organisational performance.


conclusion, the question is a highly complicated area in which a wide-ranging
mixture of different factors interplay. It can be clearly seen leadership
creates a critical link between the performance of organisations and how high
employee’s standers of working become due to a leader influence and motivation
technique. A lot of researchers believe that leadership behaviours can help the
development of both leaders, leadership capability and inspire employees to
work better and develop their duty and satisfaction. This eventually adds to
developing organizational performance. However, there hasn’t been a clear
decider on which leadership theory is best as many scholars believe in
different styles working best to benefit an organisation. All leadership have
their pros and cons so it isn’t very clear in which is the best, but it is
clear leadership does make a difference to the performance of an organisations
as different style improve decision making or increase the standard of working
of the employees to the highest potential and therefore benefiting an
organisation as it will be working to its highest potential and it will be as
efficient as it can be.