Organisational success is determined by effective leadership Essay

Organisational success is determined by effective leadership - Essay Example Rather, different criteria should be used each time that organisational success need to be evaluated. Of course, there are certain factors, such as leadership, that are always capable of affecting organisational success. The relationship between effective leadership and organisational success is explored in this paper. It is proved that the traditional thoughts on effective leadership its relationship with organisational success should be reviewed. Moreover, it has been made clear that the criteria for characterizing a leadership style as effective can be different across countries with different social ethics and culture. In any case, it is made clear that effective leadership can lead to organisational success, even in the long term. 2. Organisational success and leadership 2.1 Organisational success – characteristics The criteria used for evaluating the success of modern organisations can vary. Usually, organisational success is related to the performance of an organisation in terms of employee satisfaction (Sims 2002, p.144). More specifically, it is believed that a high level of employee satisfaction reflects the ability of the firm to communicate with its stakeholders, a condition that its critical for its success (Sims 2002, p.144). ... ccess using the above criteria can be inaccurate mostly because the potentials of each organisation to achieve high profits or to survive in the market are differentiated according to the years of the firm’s presence in the market (Kirby & Watson 2003, p.46). For example, the criteria of growth would be more valuable when referring to ‘the start-up of the organisation’ (Kirby & Watson 2003, p.46). Profitability also should not be used as a criterion for evaluating organisational success in the early years of the firm’s presence in the market (Kirby & Watson 2003, p.46). Rather, profitability would be a critical criterion for evaluating the success of an organisation that has been, already, well established in the local or the international market (Kirby & Watson 2003, p.46). The use of an integrate framework for evaluating organisational success helps to control the risks related to the particular task. The ‘Malcolm Baldrige National Quality Awardâ₠¬â„¢ (Dinsmore & Cabanis-Brewin 2010, p.130) can be considered as such framework. In fact, the above Award is awarded to organisations that meet a series of criteria in regard of quality (Dinsmore & Cabanis-Brewin 2010, p.130). Leadership is the first of these criteria Dinsmore & Cabanis-Brewin 2010, p.130), a fact that verifies the relationship between leadership and organisational success. Other criteria used in the context of the above framework are: ‘strategic planning, customer focus and workforce’ Dinsmore & Cabanis-Brewin 2010, p.130). From another point of view, Cameron & Spreitzer (2011) note that organisational success should not be related only to the financial performance of each organisation. Rather, the success of organisations in the modern market should be based on their ability to promote