Organisational Leadership: What is it and Why is it Important?
Organisational leadership has garnered increasing attention in recent years. Find out what it is and why it is important.
Leadership has become quite the buzzword especially when we talk about workplace environment and employee well-being. Whether it is a small or a big corporation, leadership is considered to be an essential business function that aids the organisation in delegating its resources effectively and efficiently as a means to achieve its goals.
While there was a common perception that effective leaders have certain attributes that enable them to influence other team members, this might not be the case anymore. In recent years, this idea has evolved into understanding the values and viewpoints of their colleagues as well as promoting a free exchange of ideas within the team or the workplace.
This is where we introduce organisational leadership, which considers leadership more holistically, keeping in mind the mission and goals of the workplace. Through this article, we will explore what is organisational leadership, how it differs from traditional management of companies and the important role it plays in the workplace.
What is Organisational Leadership?
Organisational leadership is considered to be an approach that companies utilise to empower their employees by considering their management and how to align individual goals with the common goal of the business. The cornerstone of organisational leadership is the integration of formidable management practices with various concepts of human psychology.
Ideal organisational leaders do not practice enforcing their authority over their employees but rather provide their team with the necessary guidance to successfully achieve organisational goals. Yet, they do not just individually lead their colleagues but also oversee the actions as a team. Organisational leaders demonstrate skills of teamwork, effective communication, conflict resolution, and group problem-solving techniques.
But before we consider the benefits of organisational leadership, we need to consider how it differs from traditional management.
What is the Difference Between Organisational Leadership and Traditional Management?
Although often used interchangeably, leadership and management are quite different from one another. Though both are essential for the business, traditional management comprises much smaller teams and often perpetuates a more hierarchical structure and is predominantly goal-oriented. Organisational leadership, on the other hand, expands on traditional management by fostering innovation and managing change across the organisations.
Moreover, individuals who are managers are selected based on specific competencies, technical expertise as well as knowledge while individuals with a great ability to influence and inspire others are considered to be good leaders. For example, a manager would focus on planning, organising and executing a particular task effectively while leaders prioritise developing and maintaining interpersonal skills across the business.
However, neither can function without the other. For instance, although leaders provide direction for the team to achieve their vision, managers help realise said vision by ensuring that the teams are able to successfully accomplish them. Now that we have looked at how the 2 concepts differ from one another let us consider why organisation leadership is important for the workplace.
Why is Organisational Leadership Important?
Organisational leadership is considered to be a cornerstone for any business to succeed as it guides all employees to understand the long-term goals and strategies. Let us look more closely at why organisational leadership is important.
1. Employee Engagement
Employee engagement refers to the level of commitment and enthusiasm an individual feels towards their job and by extension their company. A 2017 study by Gallup highlights the importance of employee engagement in the workplace as it increases productivity by 17%, and reduces workplace absences as well as employee turnover by 41% and 59% respectively.
These results show that employee engagement has to be a key focus for leaders in order to be able to achieve the change they are driving towards. In fact, when leaders lead by example, authentically demonstrating their commitment and impactful behaviours towards the business, it can have a significant effect on employee engagement.
2. Enhanced Communication
As previously mentioned, leaders help communicate the mission and vision to all employees in the company. This provides the workforce with direction and helps them better realise the roles that best align with their previous experiences. Moreover, clarity of communication increases the number of employees that accomplish their objectives.
3. Promote a Growth Mindset
Effective leaders often ensure to create a constructive environment that encourages others to progress in their career path. Not only do they nurture their team members but they are open to considering new ideas for accomplishing set goals and take accountability for their errors to correct them.
4. Increasing Productivity
Considering all the above factors that benefit from organisational leadership it is safe to assume that good leadership is considered to strongly improve the productivity levels of employees. An effective leader makes employees feel heard and valued, which in turn increases their levels of productivity in the workplace. For example, research has shown that when there is more leadership activity in an organisation, productivity has also been observed to increase.
Ultimately, organisational leadership not only enhances organisational productivity but also promotes a more inclusive workplace culture where employees thrive in their roles. This then allows for the successful implementation of strategies to efficiently and effectively realize the business’ vision and mission.
References Balbuena, S. E., Perez, J. E. M., Irudayaselvam, S., & Balaccua, M. M. (2020). Application of Leadership Theories in Analyzing the Effects of Leadership Styles on Productivity in Philippine Higher Education Institutions. Online Submission, 8(3), 53-62 |