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Friday, February 7, 2020

The impact of leadership or Entrepreneurship Literature Review Essay

The impact of leadership or Entrepreneurship Literature Review - Essay Example A series of studies published in regard to this issue has been reviewed in order to identify the key aspects of the involvement of leadership in organization. It has been proved that leadership can highly impact modern organizations; still, the level at which leadership affects organizations is not standardized. Rather, differences seem to exist under the influence of internal and external organizational environment. In addition, the impact of leadership in organizations can have many aspects; reference can be made, as an example, to the influence of leadership on organizational strategy (Fairholm 2009). The literature review is presented in section 2 of this study. The particular section, which is the study’s main body, has been divided into two parts. The first one presents the literature that addresses the potentials of leadership to impact organizational performance. Then, in the second part of section 2, the various aspects of impact of leadership in organizations are ana lytically presented using relevant academic studies. 2. Impact of leadership in organizational performance – literature review 2.1 Can leadership impact organizational performance? Udoh and Agu (2012) have investigated the potential influence of two specific types of leadership, the transformational and the transactional leadership, in organizations operating in the manufacturing industry of Nigeria. The workers of three organizations operating in the particular industry have been asked to participate in the survey. A total of 286 workers have accepted to state their view in regard to the issues explored through the particular study. It should be noted that workers at different level of the organizational hierarchy have participated in the study, aiming to secure the study’s credibility. The responses of the participants indicated a close relationship between the two leadership styles, i.e. the transformational and the transactional leadership, and organizational perfo rmance (Udoh and Agu 2012). The importance of the above study can be identified at this point: the study of Udoh and Agu (2012) shows that, even if based on different approaches for enhancing employee performance, the transformational and the transactional leadership are equally powerful in securing high employee performance. On the other hand, for Boerner, Eisenbeiss and Griesser (2007) transformational leadership is more likely to boost organizational performance, compared to transactional leadership. The above researchers used both the literature review and the empirical research in order to check the impact of transformational leadership and organizational performance. The review of the literature related to this issue revealed that transformational leadership can enhance employee performance by focusing on the relationship between the leader and employees (Boerner, Eisenbeiss and Griesser 2007). Indeed, it seems that through transformational leadership ‘trust, agreement o n values and self efficacy’ (Boerner, Eisenbeiss and Griesser 2007, p.15) help employees to keep their performance at high levels, a fact that positively affects organizational performance. When the effectiveness of transactional lea

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