Leadership styles and organizational culture on company performance

Organizational Culture and Leadership

Leadership is power, exercise of influence of an authority that seeks to inspire the conduct of others (individuals or groups) in order to get them to voluntarily achieve clearly defined objectives. While some have naturally predisposed to leadership, it is also true that leadership develops over time. What is the key to a productive leadership? How to improve weaknesses to achieve positive results? How to mobilize and energize your team towards a common goal? (Chen and Francesco 2000)

According to Daniel Goleman, a Harvard professor, psychologist, author of the internationally recognized best seller "Emotional Intelligence," there are six leadership styles and each style is adapted to specific conditions. We will consider in this paper the different facets of leadership and their influence on the performance of the company through the corporate culture. We discuss here the leadership in a situational context.

Many leaders try to reduce costs, increase revenues and profits to invest in new technologies or in advertising to improve their performance. They neglect, however, an essential aspect of the organization that could make a considerable difference in their pursuit of performance: organizational culture. For our article, we define as the set of working conditions that drive or not a group of people to give the best of them in the line of duty.

Some studies conducted in the United States in 2001; there is a positive relationship between organizational culture and financial performance of the company. Indeed, companies whose culture is dynamic would get a profit margin of 71% higher than companies whose culture is static. To achieve results above the average, it will therefore be able to use leadership styles that have a positive impact on culture in the invigorating.

According to these studies, the various elements of culture that influence the dynamic of employees are:

Clarity: Level of detail that exists in communicating the values?

and mission of the company.

Ethical level of quality high performance established by the company and employees.

Liability: The degree of accountability to the organization. Employees are encouraged to take calculated risks.

Flexibility: Employees feel free to innovate without bureaucratic constraint. They are stimulated to find other ways to achieve their goals.

Incentive: Relationship between the justification of performance feedback and improvement. The best performances are welcomed, mediocrity is not tolerated.

Commitment: Spirit of cooperation and sense of belonging among employees towards the company and its mission. (Pors and Johannsen 2003)

Literature review

For many years, one wonders about the best way to direct people to an organization and achieve the agreed targets. It seems that an important element of success is flexibility and the ability of the leader that is changing its management style to adapt well to different situations. According to the situational model of Hersey and Blanchard, renowned authors of "Management of Organizational Behavior," the preferred leadership style varies mainly according to three elements, namely the leader himself, the members of his group and the nature of the situation. (Chen and Francesco 2000)

The leader must remain sensitive to the capacity and the will of his subordinate to carry out the task and will have to adjust his leadership style accordingly. (Pearson and Entrekin 2001) Thus, the effectiveness of the leader depends on the match between leadership style and a type of situation, but also its ability to create a work environment that allows subordinates to improve their technical skills and good will. (Politis 2002)

The American consulting firm, Hay / McBer, recently conducted a survey based on 3,871 executives selected from a core group of more than 20,000 executives. Research has led to the identification of six models of leadership, each arising from different components of emotional intelligence. The concept of emotional intelligence (EI) - popularized by Lok and Crawford (2001) is the ability to perceive, feel, understand and manage emotions in a context of emotional and intellectual development (see our capsule "Emotional Intelligence"). This is a concept incorporating four dimensions: self-awareness (confidence), self-control (emotional coolness, initiative, adaptability, openness, and optimism), social awareness (empathy, organizational awareness, orientation service) and social skills (influence, a catalyst for change, communication, conflict management, teamwork and collaboration). (Block 2003)

Leadership styles and organizational culture

According to David McClelland, a professor of organizational psychology at Harvard, the leaders who have at least six skills of emotional intelligence are far more effective than those who have less. Indeed, the first are better able to juggle the different styles of leadership (motivating style, style co, style participatory style of mentor style "by example" style authoritarian). (Pors and Johannsen 2003)

Authoritarian Style

The manager authoritarian control makes all the decisions and demands of his subordinates do their work exactly as desired. Subordinates are not involved in decision making, (Do it because I tell you!). It leaves little initiative to employees who can feel frustrated by the lack of flexibility and motivation to work for the company. Moreover, this style appeals to fear and membership is acquired under threat of destruction or deprivation. (Politis 2002)

Authoritarian leadership is recommended only in emergencies that require immediate reaction and could endanger the safety of employees. However, most of the office everyday situations are not really real emergencies. (Lok and Crawford 2001) The leader using this style tends to think: "This emergency is so important that we do not really care what you feel now.

The authoritarian leader ignores the emotional reality, showing little empathy often gives orders. This model has a very negative impact on culture. To avoid too much damage the work climate, this style should be used short-term and in specific situations. It is important to inform the subject of immediate reactions required to lessen the frustrations that may arise. (Riketta 2002)

Style "By Example"

There are most often the leadership "by example" in technology sectors. The leader is typically someone who excels thanks to its technical skills. It has risen dramatically in the hierarchy and reached the title of "team leader." (Pors and Johannsen 2003) Out if the person does not have the emotional skills necessary for leadership or is not ready emotionally for this position, it is likely that the leader is faced with problems of leadership. (Politis 2002) It raises expectations very high; often up to individual performance (Do what I do!) And can be impatient when the standard is not met. This creates a climate of tension and the subordinate can sometimes feel overwhelmed by the demands of his employer. (Block 2003) Moreover, the leading "by example" rarely gives positive feedback, but mostly negative comments. If the standard is not reached, employee morale is down at the lack of initiative and trust that the leader gives them. The work becomes routine and boring. (Matthews and Ueno 2001)

Due to the adverse consequences of such management on the corporate culture, the leader must take all necessary precautions before selecting the style "By Example." The latter is recommended when quick results are expected. It is adequate if the employees are like the team leader is to say, skilled and motivated in an environment where they need little supervision, such as companies in R & D. (Pearson and Entrekin 2001)

Cooperative Style

This approach highlights the team members, ensuring above all for their well-being and harmony of the group. Recognized and rewarded for their work, team members are motivated to achieve their goals. (Block 2003) The leader must use this leadership style when he wants to improve the morale of his team and communication within the company or a culture of trust. However, it is preferable to use the cooperative style with another style. Indeed, exclusive use of this approach is essentially based on the praise might encourage uncorrected errors. (Pors and Johannsen 2003)

In addition, although communication is encouraged and allows the sharing of ideas and inspiration, the leading cooperative often leaves his subordinates without clear direction. It is recommended to use the style and cooperative in addition to motivating style. The collaborative leadership is particularly effective for companies whose management is horizontal type (law firm, consultants, accountants). (Politis 2002)

Participative Style

This model promotes the exchange between the leader and his team. Indeed, the manager encourages participatory subordinates to participate in decision making. It does not impose his ideas, but rather he discusses with his subordinates and takes into account their opinions before making a decision, which increases the degree of accountability. Thus, the coalition leader and strengthens confidence in the company. (Matthews and Ueno 2001) People who work in a participatory leadership are generally realistic about the feasibility of projects.

They are aware of their limitations and their strengths (see, Emotional Intelligence). Although this approach may create a situation that drags on, based on countless meetings, it has the advantage of generating new ideas and promotes a common direction desired by all majorities. By cons, it should not involve employees in decision making if they have no expertise, resulting in a real waste of time and much frustration on the part of management and employees. (Pors and Johannsen 2003)

Mentor Style

The leader plays the role of advisor. He cares about its employees, helps them identify their strengths and weaknesses and advise them about their career aspirations. This creates a huge sense of loyalty and commitment to the organization. (Block 2003) The role and responsibilities are defined from the start and the leader ensures give enough feedback and instructions to direct his subordinates. (Politis 2002) This management style is the least used of all because many people believe, wrongly, that this approach considered both long and tedious, does not correspond to economic reality where every minute counts. (Lok and Crawford 2001)

The style of Mentor, however, shows very efficient since it has a positive impact on all the factors of organizational climate. The leader can use this style in almost every type of situation. However, this approach is only effective if employees are willing to receive advice and follow the leader and has the expertise to support their development.

Affiliative Style

The inspiring leader gives clear direction and mobilizes his team towards a common vision. This is the model that creates a very positive impact on the culture of the company and that applies to most situations. The inspiring leader clearly articulates the objectives, but leaves free rein on how to get there. This approach thus gives people the freedom to innovate, to experiment and take calculated risks. (Pors and Johannsen 2003)

For this style to be effective, the leader must possess or develop a high degree of empathy. (Block 2003) He must understand and feel the support if his subordinates. In fact, to inspire people, they must first understand their aspirations. This approach should be avoided if the leader is working with experts and peers who have more experience than himself. In this case, they may see the leader as too pretentious or out of reality, creating tensions within the team. (Matthews and Ueno 2001)

If the leader has little leadership styles, it may be associated with colleagues who are missing the style, or work to improve his mastery of styles. To do this, it must know its strengths and weaknesses and recognize the technical skills or emotional it would be useful in the use of different models. (Lok and Crawford 2001) There is no leadership style that is completely successful. Empirical research shows that there is no normative leadership; competent leaders are those who can adapt their behavior to the situation and needs of subordinates. Moreover, we must not only adopt the leadership style within the same company depending on the situation but we must also consider the personality of each individual in the company. (Riketta 2002)

The good leader is a carrier of vision based on experience and must pass on to his subordinates respect, confidence and conviction to accomplish an important mission. The leader must also create interest and encourage employees to excel themselves by seeking new challenges. (Block 2003) An often forgotten in our organizations is the individual recognition. In short, the leader must manage the environment of the organization, trying to adapt to different styles of management personality. (Matthews and Ueno 2001)

Culture has to do with the socialization process that occurs within a company, through a social objectification. There is no organization without a culture that identifies, distinguishes and guides their actions, ruling their perceptions and their public image. (Lawler 2001) In its broadest definition, organizational culture is the priority given by the organization to different things. Certain statements that may be outlined in relation to the importance of knowledge, study and deepening the culture in the organization are:

Achieve a more lasting change in the organization

Create the need to improve the organization

Facilitate changes in methods and styles through self-knowledge.

Create the need for behavioral changes and acquisition of new skills Achieve greater control of resources and comprehensive organization

Mobilize human resources in identifying problems and finding solutions

Improve individual and group work

Create capacity for self-diagnosis and self-design of business strategy. (Pearson and Entrekin 2001)

Organizational culture is what needs to be developed in any business, company or organization, and thus create stable links naturally to people who are in the company. (Pors and Johannsen 2003) An organizational culture means to be developing activities with a common goal with a working group, with goals that unite people embedded in the organization, functioning as an organization is an ordered set of work and the team mentality where develop individual activities carried out jointly approach the company achieve its objectives. (Engel Brecht and Chamberlain 2005)

Any firm or company hopes to have a clear and effective organizational culture inserts in your organization. The idea of?

a company is not to recruit people for a specific result only, is to make people recruited to work as a community, as an organization where the mix of skills and roles of individuals lead to group together to achieve the proposed results. (Koys 2001)

The culture of an organization is formed in various ways:

Selection of employees: the type of person recruited reflects and reinforces the culture of the organization. Performance of staff, newly hired someone to copy what others do. This ranges from how to dress, to the work schedule, to how they use technology, and the value they place the posts in the parking lot. (Matthews and Ueno 2001)

The nature of the business: some industries promote a particular culture, such as consulting or banking. One of the most distinctive cultures is the high-tech companies in Silicon Valley, where it promotes informality, there are many games in the environment, and uses much pizza and soda. (Politis 2002) External environment, every organization is within a society. Even as the same company, an office in Santiago will not have the same culture as the branch in Sao Paulo or Buenos Aires.

Discussion

In this paper we see that a good corporate culture is of great benefit to any organization productive and beneficial to achieve this culture is closely linked to good performance that has the leader of this organization. (Cameron et al. 1999)

The new leader should be fit to surround himself with capable people to handle autonomy and discretion and personal touch make decisions, consider the vision and desired positioning with the courage to remove existing structures and to change or create a new culture business within the organization with which to achieve greater performance and usefulness of the organization, making it more stable and to achieve a market position against stronger competition. (Nelson and Quick 1999)

In the scenario of an organization can be found that the organizational structure provides the opportunity for each area head to serve as leader. (Block 2003) Through formal position provides the employee with a status not only recognized but also important information about the company and in your area, which can be capitalized upon to provide such information and communicate how it helps to fulfill the expectations of his subordinates, to convince them to follow and exercise its leadership to lead his team to a successful performance. (Politis 2001)

Talk of the administrative leadership implies that executives are aware that their role within the organizational context, wishing to be considered as leaders exhibit behaviors that are required demonstrate the ability to: convince the staff that works with them the value of their contribution to success in achieving its mission and business area, and excite the degree of personal struggle achieve the vision he shares them. We often find that employees are demanding that their managers behave as leaders rather than managers. (Riketta 2002)

The organizational structure is critical to encourage leadership administrative and Engel Brecht and Chamberlain (2005) mentioned that this is mainly due to two reasons: one is that the design of the job profile and determines the staffing level and another is that position determines the relationships between people. All these factors create the conditions basic to cultivate a more or less administrative leadership. (Block 2003) To determine the functions of the organizational work that is necessary to understand and be committed to its mission and vision, if this happens, you may make a distribution of functions effect throughout the organization and establish an appropriate structure, thereby increasing the exercise of leadership. (Politis 2001) For the leader to be able to work effectively with subordinates and peers and can do that move in the same direction to effectively achieve the desired goals, the structure requires specific roles for each position and demand behavior and development of different skills for each employee.

It is important that the administrative leader understands this fact and be clear to conducive to the existence of a structure that provides the context for all social interactions (Clement, 1991). A good leader knows how to assign tasks, so they are challenging and stimulating, while ensures that managers possess the knowledge and encourages and motivates them if necessary. "A clear management structure must be first if effective administrative leadership has had a chance to occur" (Engel Brecht and Chamberlain 2005).

This structure, together with the roles assigned, we give the administration the opportunity to promote administrative leadership. Having a system assessment of managerial effectiveness in administrative leadership will serve as evidence to support the development or replacement of administrators who do not meet performance standards. (Chen and Francesco 2000) The design of the organization provides the basis for formal leadership, but people should wish to exercise that leadership and behave as leaders, to bring staff to comply with the organizational mission and vision. (Matthews and Ueno 2001)

Without clear leadership, modern, spreading, the organization will not be able to achieve an organizational culture that allows you to adjust its organizational behavior in order to meet the needs of the current environment. (Goffee and Jones 2000)

Organizations must have leadership that is strong, committed, and innovative and has the vision to anticipate what might happen. The stable organizations hire the best staff and reward for exceptional performance. One institution moves toward organizational stability Christianizing the powers of the effectiveness through such things as personal, interpersonal, managerial and organizational. (Cray and Mallory 1999) This means that leaders must possess a level of maturity and learning that allows each person identified as a single person, which should be involved in the organization as part of a system essential for the stability of the company. (Block 2003)

Efforts to business success does not depend exclusively on the leader, if he does not think strategically and in conjunction with his staff, techniques and management tools are not able to develop their own. One can say that if the structure of the organization supports formal leadership, this will facilitate administrative leadership because there is preference of people to follow the formal leader, especially when it acts as a leader and show consistency in their actions every day. (Lok and Crawford 2001)

Conclusion

It is desirable that the area of Human Resources Organization to consider when selects and place the person in office, that is right for it, taking into consideration what the design of the post and demand structure, and what their superiors and subordinates expect from it. (Deal, and Kennedy 1999) Consider what subordinates expect their leaders is not something that the areas of Human Resources are now discoursing to select who will occupy levels supervision, despite the success of areas will depend on the momentum generated between them. (Riketta 2002)

The design of the structure must allow communication to flow and this is compounded by having staff with oversight covering the expected profile by followers of different levels. For its part, the persons occupying management positions or supervisory staff should be aware of the needs of their followers and the expectations they have regarding behaviors and skills that must be shown to be considered leaders. (Pearson and Entrekin 2001)

To exercise leadership administration in an effective way is important, that's why you have to set goals, deadlines for compliance and performance parameters, so that there is clarity about responsibility acquired by staff and can stay on track. (Block 2003) Provide leadership is an individual decision, however, because there are people who are born with certain characteristics (such as charisma, high energy, intelligence to visualize future persistence, self-confidence and desire to influence others) are provided with the act or develop as leaders. (Lok and Crawford 2001)

There are also people who naturally do not behave as leaders, but when the conditions conducive to the practice of their skills in situations that require leadership, decide learn and do whatever is necessary to achieve their dreams, and go beyond their previous limits, motivated by their desire to influence others. (Politis 2001)

Strengthen the administrative leadership in the organization begins to specify the behavior expected by staff in supervision of staff position, continue to inventory the staff competencies for leadership and administration to determine the performance gap leadership and finally, develop those behaviors required for administrative leadership successful, because the development of leadership skills is essential in an existing organization. (Cronk 1999)

The development of leadership skills must start providing administrative opportunity for self-exploration of individual motivations and self-assessment of the current state that are their leadership capabilities, allowing people to generate a vision of themselves as leaders and create opportunities to practice leadership and experience the satisfaction of exercising it. Successful businesses today depend on it. (Matthews and Ueno 2001)