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Ford

In: Business and Management

Submitted By MelB725
Words 1168
Pages 5
Abstract
Leadership is an important function in small business. Leadership and management represent two completely different business concepts. Leadership is commonly defined as establishing a clear vision, communicating the vision with others and resolving the conflicts between various individuals who are responsible for completing the company’s vision. Management is the organization and coordination of various economic resources in a business. Leadership can have a significant impact on an organization’s performance.
1. Discuss the role of leadership and how it can impact organizational performance.
• Setting the Tone
Small business owners usually set the leadership tone for their organization. Owners accomplish this by developing a mission or set of values by which they operate their company. This creates a minimum level of acceptance for employee behavior. Business owners often create company policies or guidelines from the company's mission or values. Policies and guidelines also give business owners the ability to remove under-performing employees from the company.
• Types
Three types of leadership are common in business: authoritarian, democratic and laissez-faire. Each type of leadership impacts organizational performance differently. Authoritarian leadership is commanding and sets clear expectations for employees in the organizational. Democratic leadership encourages feedback and input from managers or employees regarding organizational performance. Laissez-faire is a hands-off approach, where managers and employees work according to their own preference and schedule. This leadership style can lead to poor motivation and work practices.
• Features
Successful organizational performance relies on the proper behavior from managers and employees. Leadership can be an evolutionary process in companies. Business owners who provide leadership can...

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