Leadership and Organizational Performance


Leadership is a process through which a particular person or group influences their peers on the direction they should take in any environment. Different areas have different forms of leadership, and it is what makes an organization succeed in its endeavors. There must be a well-structured method through which the organization’s affairs are operated in any organization. Leadership as quality is dependent on some aspects that if it fails to meet, there will be no quality leadership. Ability to decide on behalf of the organization, the personal skills of the leader to lead the team, and the characteristics of leadership traits. Organizational performance is greatly affected by the leadership in the organization. Generally, poor leadership may lead to a significant loss in the company and eventual collapse. When the leadership of the company cannot relate with the other interconnected companies to benefit from mutual business operation, the organization may slag behind its peers, making it less preferred by the customers that previously had entrusted them. To avoid tainting the organization’s image considering its performance, the organization’s stakeholders must install sound leadership to give direction on the organization’s affairs. The manager must incorporate correct leadership styles, and the company’s stakeholders must ensure the smooth running of activities. The discipline of the employees largely depends on the leadership too (Najmi et al., 2018). Therefore, the leaders of an organization must act in the capacity of being role models and hence the heads of the organizations for them to be successful.

Literature review

Determining the impact of leadership on organization and performance and examining the relationship between leadership and organizational performance are primary aspects of this study. Leadership involves the concept of convincing the others in an organization to wholeheartedly work together to achieve the common goal in the organization. Administration allows the division and delegation of the labor in an organization to ensure that everyone has their area of specialization. A leader delegates duties and supervises them to ensure that they work effectively. Through this, the general performance of the organization will significantly improve. This is due to continuous work and quality work hence excellent performance. Through leadership, the employees can work in teamwork instead of when they do not have delegated duties. A manager who is the leader in the company must ensure that the employees get motivated (Jaleha & Machuki, 2018). Through motivation, the employees will do their best to ensure that the organization reaps the best. When employees feel like part of the organization, they will work tirelessly, and that is how to boost the organization’s performance. This is a collective performance of the individuals brought together to achieve and realize the milestone.

Leadership sets the vision of the organization. The employees, therefore, work from the perspective of achieving the desired results. The teamwork that is yet to realize its goal as an organization requires an open-minded leader who sees beyond the daily tasks bestowed on him by the organization. An organization needs a leader who can firmly bargain on their behalf to get a share fair in the market. Only a leader who has a clear vision can achieve this. Leadership as a skill also requires a tough stand due to external and internal pressure. the administration must run affairs in time, the criticism by the public, and the stiff competition from the peers. A firm and excellent leader can only handle all these. Otherwise, the organization can collapse easily if this pressure sways the leader or manager.

Roles of a Good Leader in an Organization

A good leader is someone who has a clear vision for an organization. Having a slogan of leaving the organization better than they found it can act as a drive towards achieving greatness in an organization. When a leader can delegate duties and supervise them, he qualifies to be a good leader. Also, a good leader is someone willing to revive the worthless goals in an organization into becoming a reality (Arif & Akram, 2018). Acting as a mediator among the employees and creating an excellent working atmosphere for the employees is a good show of a qualified leader. A good leader knows that the motivation of the employees and even the customers is a good marketing strategy that acts as a double chance for the organization in terms of organizational performance. When they motivate the staff, they will do their duties diligently; on the other hand, when they encourage their customers, they stick to the organization and eventually refer their friends and relatives to the organization. Before the leaders decide, a good leader must weigh the consequences and the fate of the final decision that he is about to make on behalf of the organization. This is a trait called being objective as a leader. Also, being observant and innovative in matters concerning the goals and objectives of the organization is a good trait of a leader. This is called the ability to be perspective. A good leader must resonate with his environment to take appropriate actions. A rebellious leader deprives the organization of the community’s trust in it. The employees also in that line start to be indisciplined since they no longer take instruction from such leaders. A good leader knows what to prioritize in the organization. The areas of weakness that need improvement are some of the areas that should be looked into to improve the organization’s general performance.

Organizational Performance

The level of an individual’s work achievement after putting in an effort is what can be defined as performance. Organizational performance, therefore, is the work output of the organization after it has accomplished its task assigned by the stakeholders. Once in a while, an organization assesses the general performance of its activities. This helps them to know whether they are on the right track or if they need to pull up their game after identifying their weakness. Whatever makes the organizational performance better or poor is the type of leadership involved. This has a significant impact since it guarantees either passes or fails. Therefore, it is essential to ensure exemplary leadership is in the organization. Through organizational performance, the public views an organization as either the best or the worst in a specific area. When the administration is good, general performance is high (Alrowwad & Abualoush, 2020). The organization attracts new customers, partners, and event sponsors. However, vice versa attracts penalties by the governments, avoidance by the public, and many other unfortunate perceptions.

Case study

“The organizational behavior dimensions of motivation – Shell UAE” is a good case study that reflects on the leadership impact on the performance of the organization—taking into consideration the fact that organizational behavior is determined by the performance of the organization, understanding the concept of the corporate leadership impact on the employees. Organization behavior refers to the field of a study aiming at evaluating the implications individuals, groups, and structures have on the behavior within the organizations. These human behaviors in the organization are reflective of organizational performance. An organization that is disorganized and has no strong leadership leads to chaos. Every activity done in it seems to be unpleasant, and no one wants to associate with the organization’s failures. Therefore, in that case, good leadership comes up to defend the organization against collapsing due to those issues. Also, organizational behavior dimensions like motivation are the pillar of success in a company. A company coordinated by humane leaders will motivate its employees to boost their morale. Understanding the needs of employees and how the leadership should control them is a vital area to check into if you want to make the organization great (Jiménez, 2018). Good leader chips in to make the organization orderly by ensuring that the needs of employees are covered and therefore limited complaints that may hinder the proper functioning of the organization. Allowing the employees, suppliers, and customers to have a say on the organization’s decision or the route that the organization should take is an upbeat show of the need to bring the organization under orderliness.


Organizational behavior is reflected in the leadership’s impact on organizational performance. Excellent performance is therefore linked up to good leadership skills. From both the literature review and the case study, organizational performance as a factor that immensely leads to the organization’s prosperity needs a support system. A sound system entails good leadership in the organization. It first starts with the mindset of the leader. An accommodative leader who also has a trait of selflessness and other positive traits is the most excellent solution to an organization on the verge of collapsing. A leader that knows the responsibility lies on his shoulder for being the head of the organization is the ultimate answer here. Employees’ discipline and the corporation is an organizational behavior that also leads to a good performance. The organization can attain this through continuous assessment and motivation of the employees. Those performing dismally in their job specialization deserve to be counseled and trained further by the organization if all the leadership is good. However, lousy leadership can resort to firing those employees without looking deep into why they are doing so. The low performance among the employees can be caused by different factors, either at the organization or even back at home. Therefore, there is a need to look deep into such matters. Accepting employees from diverse regions is also a good trait of leadership. This makes the employees correlate well with their colleagues while appreciating the difference between them regarding ways of living and culture (Para-González et al., 2018). These employees from different regions bring diverse ideas to help the organization achieve high performance. Hence it is wise to accommodate them without belittling some or giving some priorities over the others. Also, knowing what is required of them (the employees) is a good leadership strategy. This includes clearly outlining their duties to avoid clashing or even misunderstanding. The management can only find all these leadership traits in a determined leader willing to go beyond his comfort zone to achieve the same.


It is necessary to offer the following recommendation based on the leadership impact on organizational performance findings. Allowing the staff to relate freely to embrace their differences can boost their performance since they gather new ideas from their peers. Constant and continuous motivation is a requirement in the organization to perform extraordinarily. The organizations on the verge of collapsing need a clear and visionary leader who can drive the organization back to revival. He also needs an understanding and corporation of employees to make work easier for the leader as he does the resurrection. A good leader shows equality among the staff without showing any biasness in terms of tribe or race, hence accommodative. Leadership is one of the tools used to attain organizational goals and objectives. Therefore every organization should issue of importance ensure getting the right leader that will staff their organization; to achieve their set goals.


Every organization needs a clear leadership that will propel it to attaining organizational performance at its best. There are set regulations and guidelines that the employees must follow to achieve the set goals. In this regard, there is hope that this presentation of leadership in this project shall enlighten and contribute to a better understanding of the need for adopting democratic, participative leadership in an organization, which will enhance organizational effectiveness (Alhashedi et al., 2021). Individual efforts lead to the collective result of a good performance. This can only be coordinated by good leaders installed in an organization. It is therefore essential to note that leadership is the organization’s engine, and thus its failure leads to the collapse of the whole organization. Therefore, the recruitment process for such a vital role needs to be done keenly to ensure that any organization gets a visionary leader ready to take his part seriously and elevate the company to the next level of prosperity or even regain the lost glory of the organization.


Alhashedi, A. A. A., Bardai, B., Al-Dubai, M. M. M., & Alaghbari, M. A. (2021). Organizational citizenship behavior role in mediating the effect of transformational leadership on organizational performance in gold industry of Saudi Arabia. Business: Theory and Practice, 22(1), 39-54.

Alrowwad, A. A., & Abualoush, S. H. (2020). Innovation and intellectual capital as intermediary variables among transformational leadership, transactional leadership, and organizational performance. Journal of Management Development.

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Jaleha, A. A., & Machuki, V. N. (2018). Strategic leadership and organizational performance: A critical review of literature. European Scientific Journal, 14(35), 124-149.

Jiménez, M. (2018). Leadership style, organizational performance, and change through the lens of emotional intelligence. Foundations of Management, 10(1), 237-250.

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Para-González, L., Jiménez-Jiménez, D., & Martínez-Lorente, A. R. (2018). Exploring the mediating effects between transformational leadership and organizational performance. Employee Relations.

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