Organizational Performance Of Leaders And Managers

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“There is no question that the performance of leaders and managers can have a truly significant impact on organisational performance, both in the immediate and longer term.” (Department for Business, Innovation and Skills, 2012, p8) ‘It is still an inescapable fact that people are the main resource of any organisation. Without its members an organisation is nothing. An organisation is only as good as the people who work within it.’ (Mullins, 2013). In the current economic climate it is vital that all organisations i.e. large multi-national businesses, small businesses and medium sized businesses strive to improve the skills of their leadership and management, in order to inspire creativity, drive motivation and create a working culture…show more content…
Management must consider how the development of technology and e-commerce is undoubtedly increasing their competition at a fast pace and as a result consumer demands are also rising. How managers and leaders decide to overcome these challenges can result in failure or success for their business. Research carried out by the Department for Business LMNG (2012), clearly suggests that achieving the correct combination of inspirational leadership and effective management practices and skills can have an extremely positive impact on organisational performance in terms of survival, profit, sales and growth. Their studies state that ‘incompetence or bad management of company directors causes 56 % of corporate failures.’ Therefore, it is essential for management to endeavour to improve their skills, to meet the needs of both their employees and customers. Farren (1997) suggests that there are twelve human needs. These needs can be categorised in a number of ways, e.g., into extrinsic and intrinsic. Extrinsic motivation relates to ‘tangible’ rewards, such as: salary, security, promotion and conditions of work. While, intrinsic motivation refers to ‘psychological’ rewards, such as: sense of challenge and achievement, positive recognition, the opportunity to use one’s ability and being treated in a caring and respectful manor. An employee’s job satisfaction, work performance and motivation is dependable on the
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