Impact of Leadership on Organizational Success

Business organizations are, in no doubt, continually facing new challenges in this present first paced rapidly changing hostile business environment (Basu, 2001). A number of issues triggered business environment to change at a tremendous pace, which involved economic development, shifting political standpoints, changes in people’s perceptions, needs & wants, technological advancement, vigorous business environment, extreme competition, changes in business strategies, changes in leadership and management styles and so on (Maheshawri, 1997). As a result, businesses are forced to change their stunts and shifting their view to strategic thinking. In today’s world, businesses have greater influences and impacts on people, society and economy. Strategic decision making is important to survive and thrive in order to ensure ‘Strategic Fit’, which can be attained through understanding and critically analyzing the strengths and weaknesses and opportunities and threats of the organizational operations. This is indeed vital and helpful for the organizations to realize where they are and where they want them to see; how to bring efficacies in performance and how to best plan, formulate, implement and assess their strategies (Mendenhall et al., 2013). Leadership is a crucial factor that can certainly impact towards business’s successful transformation. Business leaders play a vital role in ensuring strategic fit and the influence of leadership is significantly indisputable in the contentment of the business objectives and strategic achievements and (Segil, 2004).

In today’s extremely vigorous and hostile global business environment, organizations are continuously confronting new challenges to carry on their day to day activities. In order to face these challenging organizational and environmental situations and effectively deal with them, having dynamic, innovative, organized and highly expert business leaders is a prerequisite. Businesses at present day require global leaders who will not only provide directions to the business, but also strive to sail it through to ascertain and accomplish its objectives despite confronting unreceptive situations surrounding them (Mendenhall et al., 2013).


Leadership can be defined as a systematic way of socially influencing people to provide aids and supports in accomplishing a common and assigned task. It is a process of engaging and leading a group of people to pursue a specific objective. In other words, it is a process by which a person influences a group people to achieve an objective by optimizing the efforts of others. It is a power and capability of a person to transform an idea into reality by influencing others through accomplishing a series of activities (Hollenbeck, 2001).

Leaders are those people who see themselves as accomplishers of visions that they do by influencing other people. Leaders fetch changes in perceptions, thinking, behaviors, and the way of performing activities in others by influencing them to a great extent (Sullivan, 1991).

Leaders possess great qualities and have greater influence in ensuring the organizational goals. They are the people who hold the stirring of the vessel in this hostile business environment and sail it through by planning, formulating, developing or changing the policies and objectives and influencing organizational human resources (by deploying their knowledge and capabilities to ) to contribute to the attainment of corporate goals.

As businesses taking diverse form in today’s business environment, to gain competitive advantage and control and to gain organizational goals, there is no alternative but to have global leaders who are capable of positively influencing an organization’s global positioning (Edwards, and Rees, 2006).

Due to the highly dynamic, fast paced ever changing competitive global business environment, all businesses want to lift and excel organizational performance, thus gain organizational efficacy and success. To do so, they need to plan ahead, formulate new strategies and continually seek new ways to uplift their performance, which will help them have competitive edge over their counterparts.

Leaders play a vital role in fulfilling the vision of the organizations.

Understanding the importance of global situations is highly important in this case. Besides understanding the business nitty-gritty of the business and indigenous social, cultural, economic, legal and political aspects of a business environment, there is a greater need that businesses develop an in-depth knowledge of how businesses operate globally. Businesses need to develop these to increase their competitiveness, face extreme challenges, avail the opportunities, understand the threat, understand the cultural aspects and diversities, legal issues, economic systems, technological changes and the like in order make themselves efficient and competitive in the global marketplace (Chhokar, Brodbeck, & House, 2013). Failure to understand these issues will possibly bar organizations to assess the opportunities and threats. Leaders of an organization have the capability by assessing these situations and are capable of developing policies and practices and influencing others to understand and act in a certain way that they want others to perform (Hollenbeck, 2001).

Global economic expansion and competition have placed colossal importance on global leadership, without which achieving organizational success is practically impossible in the global market arena. Understanding the global culture is of high importance in which the businesses will be operating. Substantial differences can be observed by the way individuals, people in different groups and nations perceive, behave and perform, think and express their feelings are highly subjective and remarkably predisposed to their culture (Hofstede and Hofstede, 2005). So, a well understanding of the global culture is crucially important for effective global leadership (Trice and Janice, 1993).

Furthermore, technological evolution has huge impact on how organizations do strategic planning and decision making on which success of businesses in the global arena very much depends on. The evolution in technology makes the product development process faster, facilitates and paces up the R&D method, endorses vast development in e-services, e-commerce and e-governance, forces to develop an advanced knowledge management system for the companies and the like. The evolution and advancement in technology provides businesses an edge over other competitors. Leaders’ ability to respond to the changes quickly, to exploit the technology effectively and to perceive, assess, plan, perform and make decisions competently and strategically in global arena will ensure the competitive advantage over other global organizations. The advancement in technology allows Leaders to make speedier strategic decisions. Owing to the development in ICT (Information & Communication Technology) and high-tech computer aided planning and Decision Support System (DSS), leaders are able to plan and make quick decisions without delay in this rapidly changing global business environment (Hedelin and Allwood, 2002).

Leadership is highly crucial for an organization to succeed on which depends the forward or backward movement of an organization. Leaders direct an organization towards its success or failure. Style of Leadership is one of the key aspects of an organization as this is what that shapes the behaviors of subordinates in organizational setting. The behaviors of employees depend greatly on the way the leaders guide, show paths and influence their subordinates. A good leader is a priceless exclusive asset for an organization who is able to shape and create a strong position and future of the organization in the global business environment (Coulson- Thomas, 1997). Bhushan, and Rai, (2004) stated that a workgroup or employees without a leadership is like a human body without the head, which is likely to be off track, lost, and disorganized. So the need for good leaders and importance of leadership for an organizational success cannot be agreed more (Edwards, and Rees, 2006).



• Basu, R. (2001). New criteria of performance management. Measuring Business Excellence, 5(4), 7-12.
• Bhushan, N., and Rai, K. (2004). Strategic Decision Making. London: Springer London Ltd.
• Coulson- Thomas, C. (1997), The Future of the Organizations: Selected Knowledge Management Issues, The Journal Of Knowledge Management, 1(1), 15-26.
• Chhokar, J. S., Brodbeck, F. C., & House, R. J. (Eds.). (2013). Culture and leadership across the world: The GLOBE book of in-depth studies of 25 societies. Routledge.
• Edwards, T. and Rees, C. (2006). International Human Resource Management: Globalization, National Systems and Multinational Companies. Harlow: Financial Times Prentice Hall.
• Hedelin, L., and Allwood, C. M., (2002). IT and Strategic Decision Making. Industrial Management and Date System, 102(3), 125-139.
• Hofstede, G., and Hofstede, G. J. (2005). Cultures and Organizations: Software of the Mind. New York, London: McGraw-Hill.
• Hollenbeck, G. P. (2001). A serendipitous sojourn through the global leadership literature. Advances in global leadership, 2, 15-47.
• Maheshawri, R. P. (1997). Principles of Business Studies. Delhi: Pitambar Publishing.
• Mendenhall, E. M., Osland, J., Bird, A., Oddou, R. G., Maznevski, L. M., Stevens, M., & Stahl, K. G. (2013). Global Leadership 2e: Research, Practice, and Development (2nd ed.). New York, NY: Routledge.
• Segil, L. (2004), Measuring the value of partnering: how to use metrics to plan, develop, and implement successful alliance. New York: Amacom.
• Sullivan, M. (1991), A New Leadership Paradigm: Empowering Library Staff and Improving Performance, Journal of Library Administration, 14(2), 73-85.
• Trice, H. M., and Janice, M. B. (1993). The Cultures of Work Organizations. Englewood Cliffs, NJ: Prentice-Hall.


Posted by: Farid Ahmed



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