What is Organizational Leadership?
Organizational leadership is a management approach where
leaders help set strategic goals for the organization and lead individuals
within the group to successfully assign responsibilities to those goals.
According to a 2016 survey conducted by the leadership
development platform Elucidat, 77% of organizations have a leadership gap.
Deloitte’s 2016 Human Capital Trends report found that 56% of companies
surveyed were not ready to meet their leadership needs. And a 2017 report from
Brandon Hall Group found that 83% of organizations say it is essential to
develop leaders at all levels.
Organizations of all types and sizes focus on leadership in
their organizations - not just at the top - but the degree of organizational
leadership is growing in popularity.
The Difference between Leadership vs. Management?
The Society for Human Resources Management (SHRM) defines
leadership as:
The process by which an individual determines direction,
influences a group, and directs the group toward a specific goal or mission.
Further, SHRM explains leadership is not a position, but
instead, a behavior. This is often what distinguishes managers from leaders. A
manager might be at the top of an organizational chart; leaders are found all
across, up, and down that same chart. Managers oversee people and processes,
whereas leaders might inspire and coach colleagues at the same or other levels
as them.
A leader can be a manager, but not all managers are leaders.
A 2016 Gallup poll discovered only 18% of managers “demonstrate a high level of
talent for managing others.” That same poll estimated that the lack of
leadership costs U.S. companies more than $550 billion per year.
Is there a difference between leadership and organizational
leadership? Kind of. Organizational leadership refers to the overreaching field
in which a person (leader) manages and manages a group of people (organization)
strategically to achieve a common goal. Organizational leaders focus on the
organization and its individuals. They are business savvy, innovative, and they
are visionary communicators who are associated with traits such as
"soft" skills and attitudes, sensitive intelligence and ethics.
Types of Leadership Styles
Depending on who you asked or which list you referenced, you
can discover anywhere from six to 13 types of leaders. Here are just a few:
Transactional
Leader
As the name implies, the leadership of a transaction
involves rewards and penalties for completing (or not completing) a task. A
sales position - a tiered commission structure - may come to mind when thinking
about a transactional leadership environment. The award-based system can be
inspiring and many employees can achieve success in a set-up environment with
clear expectations. But this inflexible style is not unique to everyone,
especially employees who want to contribute ideas to their organization.
Transformative
Leader
Transformation leaders are known for inventing stimuli
within their team and for empowering and motivating employees in general. In
this environment, leaders trust their employees and give them a lot of
autonomy. However, not all corporate environments embrace this kind of
leadership.
Servant
Leadership
Servant leaders put others first. They are called upon to lead
their organization because they sincerely want to help employees or any
organization reach their goals. In employee leadership, it is even more
important for the leader to develop employees so that they do not focus on
promoting them. In these environments morale is often high but ending oneself
is not something that easily comes to all leaders.
Democratic
Leadership
Democratic leadership is also called participatory
leadership because these leaders are involved in everyone's voice. Parties led
by democratic leaders often discuss ideas and contribute equally to decisions
and actions. Democratic leaders often value their party members; However, one
of the cons of this style is that achieving sensuality can sometimes be
inefficient.
Autocratic Leadership
This style is the opposite of democratic leadership.
Autocratic leaders decide in favor of their party. As writers, these leaders
tell their employees what to do and how to do it; They have little to no input
to ask. Strict than other styles, autocratic leadership has the advantage of
quick decision-making and command of clear commands. But more creative
employees may feel unnecessary in this environment.
Bureaucratic
Leadership
This leadership style can be defined as "by the
book". The power of these types of positions comes more with traditional
work titles than with personal features. For example, a bureaucratic leader
usually comes to their position because of seniority. Companies that have this
type of leadership style usually have a clear management process. The
sustainability of such a constitutional system is one of the positive aspects
of bureaucratic leadership; However, this style also leaves little flexibility
or creativity.
Charismatic
Leadership
Charismatic leaders are visionary, and they are known for
inspiring methods of encouraging a team to reach a partnership goal.
Charismatic leaders are also often transformative leaders. These leaders have
big personalities and a contagious spirit, and that’s a plus for many
organizations. Because a charismatic leader often becomes the face of the
organization, turnover not only affects internal morale, but it can also affect
the image of the public.
Laissez-Faire
Leadership
The Laissez-Faire leadership style is considered
"hands-off". This type of leader will give their teams what they want
for their success but will then trust their staff to finish the job. Although
they put most of the day in the hands of their staff, they still take full
responsibility for their team. Many employees succeed in this unique
environment, but it may not be the best leadership style for workers who are
not self-employed. Loyalty-fire leaders also run the risk of being too passive.
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