Date Published: April 1st, 2015

Management and Leadership Impact Organization Performance

Read to help improve your corporate entities, other businesses, and for career advancement opportunities.
The game of business has changed dramatically over the years, and will continue to change due to global economic dynamics-the changes in the economic system over time, particularly those reflected in the behavior of the market, businesses, in the general economy. It is therefore imperative for leaders to accept and strictly follow the golden rule for leadership if they are ever to succeed in their role as leaders. The golden rule states that: “Leadership is a process of learning, not the position. Leaders are learners and it is a continued process of learning to achieve organizational goals and objectives, and for career advancement.” Leadership is a relationship between those who aspire to lead and those who choose to follow. It is the quality of this relationship that matters most when we are engaged in getting extraordinary things done. Therefore, it is natural to look at the relationship between leadership and management. He who heeds discipline shows the way to life, as well as corporate or organizational success and goal achievements. But whosoever ignores correction, leads others astray including multi-billion corporations.

Purpose means commitment to the right priorities. “What good is it if a man gains the world but forfeits his soul?” This quote from Matthew in the Bible reminds us that for many leaders and companies, the ultimate success is not just in “the numbers” or even the spread of a radical new product or concept. Example: Anita Roddick, CEO of The Body Shop, felt that a purpose of being merely “the biggest or the most profitable” would not sustain her company or inspire the employees to reach the ambitious goals the company attained. What Roddick was saying from my understanding is that if your aspirations come from the values of your culture, church, temple or mosque, you have something beyond your livelihood creation, and that is true. On the other hand, leaders without purpose are those whose sense of purpose did not extend beyond them. A case can be made that despite their talents and strengths, such people are not really leaders at all. Their modern counterparts are those “leaders” whose main “purpose” is pure material gain and personal aggrandizement. Talk about purpose and people will listen, but to get them to follow, you must act with purpose.
It is important to know that leaders set the agenda; leaders influence the organization culture and the long-term effectiveness of an organization. Performance management includes the following three stages: (1) goal setting and motivation (usually done “in the beginning” before much action has taken place), (2) encouragement (applied while the task is being accomplished), and (3), rewards and consequences (applied after the task has been completed). When correctly applied, performance management spurs people on to even greater accomplishment in their next desire, and successfully achieves organizational goals. Leaders and managers set the context in which the organizational members strive to achieve organizational goals. Leaders model the way if they want to gain commitment and achieve the highest standards, the leader must be models of the behavior they expect of others, as they must clarify values. Leaders inspire a shared vision - they have to enlist others in a common vision, and the process. They have to enable others to act, and should encourage the heart of their constituents to carry on.
Management is concerned with-efficiency, planning, paperwork, procedures, regulations/control, and consistency, while leadership is associated with-risk taking, dynamics, creativity, change, and vision. Leadership is fundamentally a value—choosing, and thus a value-laden activity, whereas management is not. Leaders are though to do the right things, whereas managers are thought to do things right. This is more dealt with in organizational leadership theory and practice. Thus leadership theory deals with what a leader is (character) and what the leader does (competence).
Here are some guides how leaders and managers impact organizational performance through effective and efficient performance. The first stage of performance management consists of helping people set ambitious yet realist goals and motivating them towards the achievement of those goals: Managers administrate, and leaders innovate. Managers maintain, leaders develop. Managers control, leaders inspire. Managers have short-term views, leaders have long-term views. Managers ask how and when, leaders ask what and why. Managers initiate, leaders originate. Managers accept the status quo, leaders challenge it. It is important to note that if effective and efficient performances are developed and leveraged, they have the potential to create unparalleled success and growth in business, whether it is a corporate entity, firm, or other forms of organizations. Leaders with great ambition build a great company, and leave their good name and footprints in the company’s history books, and one of their aims is to develop a good team as continued leadership development and leave a successful successor as a legacy to the company because in today’s global business, conscious and conscientious development of competent caring leaders is critical to organizational survival.
Here are some guides also to help leaders impact their organizational performances and to achieve organizational goals:
Constantly assess your leadership “bench strength” because accidents and unplanned events can deprive you of potential leaders. Your personal legacy will not survive unless you entrust it to a successor who has been developed and share your mission and business philosophy. Coaching and monitoring are key to the development of tomorrow’s leaders. Development and assignments are the best ways to prepare a leader for more responsibility. Learning by doing (action learning) carries more impact than verbal transfer of information. Orderly successions help to ensure that an organization will survive and stay to its mission, contentious or employed successions can endanger the organization and its mission. The best leaders “let go” gradually, so that the next generation of leaders can develop and eventually take over. The best leaders subordinate to their own egos to the ongoing issues of the organization. They wish and actively plan for their successors to surpass them. The reason why I have taken the time to give these few guides, is that from my professional experience, the development of new leaders is not only a key to profitability, it is also very satisfying in terms of feeling like you have left a legacy, not just an income statement. “How am I doing as a leader?” The answer is how the people you lead are doing. Do they learn? Do they manage conflict? Do they initiate change? You won’t remember when you retire what you did in the first quarter say like 1999--what you will remember is how many people you developed.
Leaders-as a leader you should know that communication with your peers clearly helps the organization’s performance. Leaders who cannot communicate clearly, powerfully, and succinctly, barely qualify as leader. The best ideas are useless if not communicated in a compelling way. To motivate others to reach your goals, you must constantly communicate your message, use a variety of communication methods, don’t neglect the power of face-to-face communication since it is a time-honored method often missing in today’s barrage of impersonal electronic messages. Effective leaders are equally comfortable communicating to individuals, small groups, and large gatherings, and customizing their approaches for each audience. It is also important to remember that repetition is an important tool, but use varying words and media so your message doesn’t become stale. Use languages, images, and metaphors that hit your audience at a “good level.” It is important that management constantly communicates performance: “before,” “during” and “after,” and set ambitions but (“stretch”) goals. Encourage goal attainment with the promise of meaningful rewards-extrinsic and intrinsic. Be foregoing of honest mistakes made and risks taken in pursuit of performance goals, and to give positive and negative consequences in a fair and timely manner, based on performance, nor partiality, and help employees make the connection between their actions and bottom-line organizational success. Acknowledge the unique talents and motivation of each team member, and remind team members that even the most powerful, competent leader can’t do it alone and that you need their help, and delegate to team members according to their strengths and development needs.
Finally, justice and fairness is extremely important in organizational management to impact organization performance and organizational growth. Honestly and integrity, primary relate to dealings between individuals. Justice and fairness extend into the group arena. Questions like this also arise in organizations: Does the leader treat all people with respect for their basic human rights? Are the rules and procedures applied even-handedly, without favoritism, across all segments of the company? A corporation is not a democracy, but managers who do not lead with a sense of justice and fairness soon find that they will lose the trust and loyalty of their followers. Moreover, they will also gain a reputation with customers, suppliers, and society at large that in a crunch, they will use their personal power to make and enforce arbitrary decision. Management should take great caution with matters of justice and fairness with their peer; it has a positive or negative impact in performance management in an organization, but if well developed and leveraged it has unparallel success and organizational growth. Here are a few guides also to help your management and leadership to impact your organizational performance:

If people perceive that they are being treated unfairly, they will stop performing or they will act like those who are perceived as favored, therefore it is a good thing to treat every employee with respect and fairness to impact the organization’s goals. The most credible companies are committed to justice not in the work place alone, but in the communities were they are located--Corporate Social Responsibility, it is a great opportunity for organization’s growth. The most credible leaders believe in fairness of all individuals and groups and act in consonance with these beliefs even when this is uncomfortable or difficult. A concern for the economically or socially disadvantaged can help meet not just a leader’s credibility but also a company’s profitability. A leader who operates on principles of fairness inspires better employee performance, loyalty, and retention. It is not enough to pursue justice, a leader also needs to reserve injustice and issue deserved rewards quickly. I hope this professional guide would help those in management as managers and those in leadership positions such as a CEO and a Managing Director. If you need professional advice or business guide to help you or your business, you can e-mail me at:, by fax at: (253) 922-8528, by phone at (253) 268-8351 and please leave a detailed message and we will return you call as soon as we can. You can access more of my articles on my journal by visiting one of my websites. Go to: and click on journal, and you can also find me on LinkedIn, facebook, twitter, g+, and on other social media and business journals.