For these reasons, severalconclusions can be drawn. Firstly, this a complicated area in which a number ofcritical factors that are underlying employee performance. Legitimate power is dependent on discernmentand reality.
It is based on a reality that an individual holds a particularposition in a business – it is also based on the fact that the employeesbelieve that the leaders have full control over him/her (Gbadamusi, 1996).Reward power includes the utilisation of rewards and is where the managerspresent their employees with some sort of reward to acknowledge theiraccomplishments, or when their actions have surpassed their leader’sexpectations – these rewards can be tangible or intangible. Some examples ofthese rewards include pay rises, bonuses, discounts, promotions, more dutiesand so on. Coercive power is the direct opposite to reward power. This form ofpowers gives the employees the idea that the leader has the strength to punishor provide those employees who don’t comply with the mandates with consequences.Expert power enables a manager to influence their employees behaviours throughtheir specialist knowledge, background experience or aptitudes that relate tothe work that the subordinates do. Being an expert gives the employee theimpression that the leaders know exactly what they are doing and that they canprovide their representatives with the right strides in which they can end upnoticeably fruitful themselves. Referent Power (personal power) is control overa person or a group of devotees, based on credentials with profound respect/ regardfor the leader.
Referent Power is one of the “five bases of social power” (Raven,1958). This form of power alludes to the leader ability to impact a follower dueto the adherents faithfulness, respect, love or a desire to gain endorsement. Moreover,referent power is picked up by a leader who has strong interpersonal skills. Anexample of referent power is Stephen Fry. He is an appropriate example because hisfanbase consists of more than 7 million followers. All of these individuals highlyrespect him and want to be aware of his wellbeing.On the other hand, withinevery business, the impact that the leaders have on their employees will besolely dependent on the type of power that the leader possesses. “Power is thecapacity to influence” (Okafor, 1981, Leadership Beliefs and OrganisationalEffectiveness).
In reference to Okafor’s investigation, he suggested that thereare five different forms of power – legitimate power, reward power, coercive power,export power and referent power. Power can be defined as a managers ability toinfluence others. Legitimate power (positional power) is based on authority, itis the sort of power that managers/leaders have within an organisation becauseof the status of their position. For example – the manager of Apple has certainpowers because of the office he holds in the business.Furthermore, laissez-faire isstraightforwardly inverse to autocratic leadership. Normally, there is a singleindividual making independent decisions for an organisation, however, thisparticular style of leadership is where the managers allow their employees tomake all of the appropriate decisions by themselves. The topic of trusting oneanother is majorly important when it comes too laissez-faire leaders.
Anexample of a laissez-faire leader was Steve Jobs. He was recognised for givinghis workers directions about how he needed things to be. “A leader is one who sees morethan others see, who sees farther than others see, and who sees before otherssee” (Leroy Eimes). Paternalistic leadership is where the leader behaves as aparent or a father figure towards their employees, the leader is mainlyresponsible of taking care of their workers needs. This leadership style is byand large used to acculturate and admonish the working environment. It has beensaid that paternalistic leadership assumes a vital part in organisationalperformance. It is exceptionally fundamental that the employees feel motivatedat their workplace, this is because satisfied employees can prompt expandedefficiency and enable an association to accomplish more elevated amounts ofyield. In addition to this, democratic leadership iswhere leaders support criticism and gain input from their colleagues, however,the duty of settling on a ultimate choice rests with the participative leader.
This kind of authority boots employee morale due to the fact that the employeesare able to make contributions to the decision-making process. When anorganisation needs to make improvements within the association, this style ofleadership enables representatives to acknowledge changes effectively as theyplay a role in the process. Democratic leadership is claimed “to be one of theearliest form of leadership in comparison to all of the other leadershipstyles” (Akpala, 2010).
An autocratic leadership styleis where leaders settle on decisions in light of their own thoughts/decisionsand they rarely give their employees the opportunity to give their input.Authoritarian leadership is generally utilised where the nature of work isencompassed by rapid decision making. The autocratic approach is mainlyvaluable when it comes too unpractised or unmotivated workers as these individualsmay need to be given requests until they can carry out the job role themselves– considering that those representatives who are substantially more innovativeand are capable of working despise this leadership style (Lewin, 1939). Autocraticleadership affects A few distinctive leadership styles existwithin a business, each of them have diverse preferences and drawbacks yet,they all influence organisational performance.
Leadership styles can likewiseinfluence communication and efficiency levels within a business which candebilitate the working relationships between the managers and their employees –this could then adversely affect the business itself and, it will also affectthe overall quality of organisational performance in the long haul. This willdiminish the proficiency of the business prompting a reduction in benefit andincome. There are a wide range of leadership styles which include autocratic(authoritarian), paternalistic, democratic (participative) and laissez-faire.Leaders play a critical partin accomplishing organisational performance, this can either be ascribed in apositive or negative way, Leadership is characterised as “lifting a person’s vision to high sights, the raising of a person’sperformance to a higher standard, the building of a personality beyond itsnormal limitations” (Drucker, 2005). Leadership involves the process ofmotivating subordinates with the goal for them to work towards an objective. Itis vital that leaders possess the correct combination of skills that empowerthe people surrounding them to take after their course.
Organisationalperformance is the way in which employees guarantee that the greater part oftheir organisations assets are being utilised accurately in the advancement ofaccompanying business goals. Previous research studies suggest that the partthat leadership plays in increasing organisational performance is varied.However, different examinations propose that leadership has real significancefor an association to accomplish high quality organisational performance (Katzand Khan 1978, Peterson, Smith, Martorana and Owens 2003).
Nevertheless,comparative studies (Pfeffer 1977) suggestthat leadership isn’t important in achieving organisational performance. Themotivation behind this essay is to clarify the connection amongst leadershipand organisational performance.