Business Leadership
Introduction
Leadership issues are relevant as they are the key to achieving organizational effectiveness. On the one hand, the leadership is seen as having a certain set of qualities ascribed to those, who successfully influence or affect the other, on the other hand, leadership is a process largely of not force action towards an achievement by group or organization of their goals. Besides, the relevance of the designated problem is caused by increased competition and competitiveness of modern organizations in relation to the employment potential that may cause the public significant damage due to unbridled ambitions, claims and other (DuBrin, 2013).
Banking activity is one of the crucial in economic development. JSC ABC Bank is a legal entity, which owns separate property accounted for on its own balance sheet, can acquire and exercise property and non-property rights to perform duties and be a plaintiff or defendant in the court. It has dependable and reliable reputation within twenty years. The Bank’s strategy is to be a leader in services to corporate and retail customers in the United States and a leading international financial group of US origin, capable of providing services to its customers worldwide. JSC ABC Bank is one of the largest financial institutions in the USA, which offers a wide range of banking products and services on the territory of the United States and in a number of African, Asian, CIS countries and in Western Europe. By the main areas of business, the Bank develops well, although there are also negative aspects that are often impossible to overcome by the simple influence of funds which, moreover, are limited. Therefore, it is necessary to use other mechanisms to improve the main indicators, first of all, to think about improving the process of motivating staff.
As newly appointed head of CRO Division, it is necessary to show the maximum achievement of positive results in work through active use of knowledge and abilities. Also, it is necessary together with the functional units’ experts to draw up a joint plan for the implementation of necessary measures.
Organizational culture is the most important factor in ensuring the competitiveness of the modern organization. A special role in the formation and management of organizational culture is played by a leader. Leadership is an important aspect of management, and leadership ability is a key moment in the development of an effective manager in any organization. Taking into account the aspects of activity of the manager, he must strive to become a leader in the organization. Manager performs all inherent roles, namely strategist, organizer, analytics, etc. in order to achieve this goal of the organization by combining available resources. This requires freedom of action, defines the powers delegated to the manager, and the power, which is the result of leadership. The success of the company, determined by how strategically leader thinks, how successfully he anticipates business prospects and is able to put a deep national, and then international idea into the company’s culture development, depends on the leader. Further success depends on the leader’s ability to choose the right team of associates and inspire workers to effective creative work (DuBrin, 2013).
Leadership style has a strong impact on the organizational climate, and hence the formation of the organizational culture. The best impact on the organizational climate and culture is made by a combination of the authoritarian and democratic styles of the leader into one. As the use of only a democratic style may lead to a decrease in discipline, work slowdown, delayed achievement of the objectives, performance tasks, and the use of only an authoritarian style can significantly worsen the psychological climate in the team, job satisfaction, which will also lead to a decrease in productivity. Therefore, the combination of styles allows as appropriate to apply certain optimal approaches to personnel management (Lawler III and Boudreau, 2012).
Therefore, culture and leadership are two sides of the same coin, in the sense that the cultures are created by leaders, forming groups or organizations. If the culture already exists, it defines the criteria for leadership and accordingly identifies possible leaders. When culture is dysfunctional, leadership should identify functional and dysfunctional elements of the existing culture and implement the “cultural revolution” by introducing a model of culture that would allow the group to survive in the new environment (Northouse, 2007).
Influence of Leadership on Organization Effectiveness
Leadership, as well as management, is to some extent an art. Perhaps this is the reason why researchers have not been able to develop or prove any theory. It is believed that with appropriate training, managers can learn to choose the style according to the situation. In some situations, managers can achieve the effectiveness of their work, the task structuring, planning and organizing tasks and roles, taking care and providing support. In other situations, the manager may consider it more correct to influence, allowing the subordinates to some degree being involved in decisions, not the conditions of the structure of the work. Over time, these same leaders find it necessary to change the style, in accordance with the changing nature of the tasks to subordinates with emerging problems, pressure from senior management, and many other factors specific to the organization (MacArthur, 2006).
Leadership helps organizations improve, go to the next level of their capabilities. Leadership gives volitional impulse for the development of the organization. And if the manager has good leadership skills, this organization will be able to resist all the trouble and successfully develop. If the manager does not consider the role of leadership, it can lead to disastrous consequences, not only for him, but also for the organization as a whole, and here it is necessary to pay more attention to the problem. It is necessary to educate, encourage and develop leadership qualities among the staff, not only in management, but also of ordinary employees (Northouse, 2007).
In addition to the formal powers, the head needs power, since he depends on people within his chain of commands, as well as outside it. In all organizations, to achieve efficient operation requires proper application of power. Power and influence, leadership tools, are in fact the only means at the disposal of the head to resolve difficult situations. If the manager does not have enough power to influence those, whom the efficiency of his activities depends on, he or she will not be able to obtain the resources necessary to identify and achieve goals through other people. Thus, the power, though often incorrectly used, is a prerequisite for the success of the organization (MacArthur, 2006).
Recommendations
For the efficient operation of the organization, focus on achieving a single goal of the head and subordinates is necessary, so the following recommendations were developed:
The leader should be demanding to himself, because the concept of a clear problem develops, when the person analyzes himself (DuBrin, 2013);
The leader should conduct a regular assessment work and the creation of positive moral and psychological climate. The psychological climate of the staff reveals itself above all in the relationship of people to each other and to the common case is not limited to this. Often in the team there are people, who are unhappy with any aspects of the collective activities or individuals. In this case, a personal dislike, excessive adherence to principles, etc. may cause the conflict. Therefore, the manager must constantly work to maintain a regular assessment and creating a positive moral and psychological climate. This will improve the performance of staff (Lawler III and Boudreau, 2012);
Each subordinate has to work to the best of his/her strength, do not try to rely on the other (Northouse, 2007);
The manager must seek personal approach to every employee, in order to achieve a compromise in problematic situations (DuBrin, 2013);
In connection with the situation, a leader must lead in a particular style, that is to use different methods of regulating the team (Northouse, 2007);
It is necessary to develop intellectual abilities and logic of staff, to conduct lectures and training sessions, thereby subordinates will quickly grasp and quickly adapt to new jobs (Northouse, 2007);
It is recommended do not be afraid of conflict situations, because sometimes under disagreements and engages the truth and new ideas are born.
Conclusion
It can be concluded that the effectiveness of the organization depends on the person, who runs the company. The role of the leader in the organization is great, because he manages the various components of the organization. He establishes communication channels in an organization, and sets the information transmission path (communication management). He provides a selection of frames, following the development of employees and controls the psychological climate in the company (human resources management). He selects the most effective way to interact with partners and competitors (control environment of organization). He observes the development of the organization, bringing into it new and innovative technologies (change management) (Lawler III and Boudreau, 2012).
It was found that leadership greatly affects organizational culture and the company’s effectiveness in general, helping it to improve. The leader should have some power in order to control his subordinates. Finally, proper recommendations concerning the improvement of the leader’s skills for running CRO Division were given.
References
DuBrin, A. J. (2013). Leadership: Research Findings, Practice and Skills. South-Western Cengage Learning.
Lawler III, E. E. and Boudreau, J. W. (2012). Effective Human Resource Management: A Global Analysis. Stanford Business Books.
MacArthur, J. F. (2006). The Book on Leadership. Nashville: Thomas Nelson.
Northouse, P. (2007). Leadership theory and practice. Thousand Oaks, CA: Sage Publications.
