Leadership is the process of directing the behavior of others toward the achievement of some general objectives. Effective leadership is very important for molding a group of people into a team, shaping them into a force that serves as a sustainable business benefit. Effective leaders have an inspirational vision. Forethought and change expectation is their hallmark. Leaders know how to make people function in a joint fashion, and how to inspire them to excel their performance. Leaders also know how to balance the individual team member's quest with the goal of producing synergy, a result that exceeds the sum of individual contributions. Leaders necessitate that their team members sacrifice the quest for personal best in concert with the team (Kotelnikov, n.d.).
Relationship between personality and leadership and team success
The amalgamation of leadership style and personality type appears to meld into a psychological mixture that produces the ethos of a leader. Leaders are not just recognized by their leadership styles, but also by their personalities, their consciousness of themselves and others, and their appreciation of diversity, flexibility, and paradox. The personality characteristics of the leader are not insignificant, but those which are necessary differ significantly depending on the circumstances. Thus, it may indeed, make a difference in establishing personality type in order to determine the correct job match between a worker and their colleagues (Marsiglia, 2005).
Leadership is regularly defined in terms of transactional and transformational magnitudes. The example of transactional-transformational leadership has universal applicability across all continents and cultures. In terms of universality, transformational leadership tends to be more effectual and satisfying than conditional rewarding; contingent rewarding is more successful and satisfying than managing by exception, and managing by exception is more successful and satisfying than other types of leadership (Marsiglia, 2005).
Leader efficiency is dependent on the leadership problem-situation, team-dynamics, organization culture, and strategy. As a result, the leader must use a multiple level of leadership skills in order to be effective. There are five categories that may be used to appraise leader effectiveness:
1. Actual performance of the organization unit or team
2. Ratings by peers, subordinates, and superiors
3. Results of interviews, simulations, or assessment centers
5. Perceptions of people whose careers are in jeopardy (Marsiglia, 2005).
Team dynamics and procedures generally provide rapid and measurable results for determining leader effectiveness. Team processes have a reciprocal relationship in which leadership processes and team processes influence each other as team members become more knowledgeable in their job related skills or in other words, the team members become gain job-skill development. As teams become more knowledgeable and attain a significant level of expertise, other members take over more of the leadership functions while designated leaders maintain their boundary spanning responsibilities (Marsiglia, 2005). In addition, leader effectiveness may be augmented when the leader takes a relationship or partnership approach. The leader-follower affiliation is mutual because as the leader influences the subordinate to become more effectual and as this effectiveness increases, the subsidiary requires less direct leader intervention.
Effect of leadership styles on organization effectiveness
Transactional leadership concentrates on the interactions that occur between leaders and their followers, in which helps follower to fulfill their own self-interests. Transactional leaders clarify follower's tasks, their performance objectives, and their tasks that must be completed. This kind of leadership deals with upholding the current circumstances and inspiring people through contractual agreement. Transactional leaders direct followers to accomplish established goals by explaining role and task requirements. This leadership method tends to highlight extrinsic rewards, such as monetary incentives and promotion. Transactional leaders prefer to avoid risk, and focus on efficiency. It can be concluded that transactional leaders help the followers to recognize what must be done to achieve the described consequences such as better quality output, more services, and decrease cost of production. "Transactional leadership is comprised of three dimensions which are contingent reward, management-by-exception active and management-by-exception passive" (Sadeghi & Pihie, 2012).
Leadership success is vital to achievement in any organization. It directly depends on outcomes and consequences of the leaders activities for followers and organization. To the degree to which the organization achieves its goals and performs its task is the most normally measures of leadership effectiveness. Effective leaders are competent to completely engage followers in the organizational strategies (Sadeghi & Pihie, 2012). Suitable leadership style is an important factor influences effectiveness of the leaders. In order for leaders to be successful there is a condition good relationship with their followers because these relationships should improve follower's well-being and work performance. These associations also may connect the followers to the group more tightly through loyalty, gratefulness, and a sense of inclusion. Transformational leaders because of their close relationship with followers should be more successful than other leaders (Vasilaki, 2011). Leaders with transformational leadership behavior can direct their organization toward efficiency and productivity. Motivating followers toward extra effort, increasing follower's job satisfaction, improving their performance beyond anticipation and cultivating creativity and innovation in organization are some of the consequences of transformational leadership. Furthermore, it has positive effects on leader effectiveness and performance. The outcomes that are obtained by transformational leadership are greater than what transactional leadership does.
The effect of ethical leadership on transformational leadership climate in organizations
Transformational leadership holds great promise for advancing associations, businesses and society because it can cause basic change, answer deeper issues and create new paradigms (Grant, 2012). Ethics, on the other hand, are a part of business. It is therefore necessary for leaders to make ethical choices and create an ethical work environment. It is the responsibility of leaders to respond to the demands of society to make the correct' decisions. It is the leader's beliefs, principles, vision and action that set the tone and standard for organizations (Banerji & Krishnan, 2000). In the light of this, it is imperative to see the role of leadership in making the right ethical choices. The ethics of leadership, whether they are good or bad, positive or negative, affect the culture of the workplace and thereby help to form the ethical choices and decisions of the workers in the workplace. What is most significant is that management realizes that it must consider the impact of every business policy and business action on society. It has to think about whether the action is likely to endorse the public good, to advance the basic beliefs of society, to add to its stability, strength and harmony. The ethical or right thing to do in business is that which best serves the ideas of ethics and good management practice.
Business ethics are rules, standards, codes or principles which provide guidelines for morally correct behavior and truthfulness in specific situations. Organizational ethics connotes an organizational code conveying moral integrity and reliable values in service to the public. A lot of studies have found that ethics are situation-specific (Banerji & Krishnan, 2000). Keeping in mind the corporate setting, ethical behavior is legal behavior plus a collection of moral values or a set of values. Ethical behavior stems from general culture, the organization, and the individual. There are a number of reasons for unethical behavior in organizations. A bottom-line mentality and win at all costs philosophy has been gaining precedence where financial success is the only value to be considered. Managers may believe that the activity is within reasonable limits and for the good of the organization and have a feeling of security that the activity will never be found out. Sometimes leaders feel they are subject to different rules than followers and as such may make unethical decisions. Industry culture is also a cause of unethical practices. If an organization's major competitors are behaving unethically, it may become difficult for the organization to make ethical decisions. Another motivator of unethical behavior is personal gain.
If leaders want to manufacture a positive influence on individuals, groups and organizations, then leadership should be broadened from old rigid autocratic style to friendly and modern style. Contemporary leaders perfectly adopt an attitude that support workers, provide them a vision, cultivate hope, encourage them to think innovatively, individualized consideration and broaden the communication. All these factors are the main features of transformational leadership style leading to boost up organizational strengths and increasing level of job satisfaction and organizational commitment in the workforce. Job satisfaction is the degree to which a person is pleased or satisfied with their job or work. Success of organizations highly depends on its workforce. More satisfied and happy workers would be more productive and profitable for the organization. Job satisfaction helps to create positive attitudes in workers, boosts up their morals, improves their performance and creates pleasant relationship with their co-workers. Workers who are satisfied with their jobs tend to be more creative and innovative that help businesses to grow, flourish and bring positive changes according to market situations and thus making organizations able to compete at international level. Leadership plays an important role in determining employees' commitment. Researchers have found that workers who are pleased with their supervisors/leaders and feel that they are…