Why Leadership Skills Are Important For Good Business Management | Extraordinary Business
It is said that ‘an organization without a leader is like an army without a general’. Efficacious leaders structure your business. Good leaders are of great help in guiding and making necessary large scale resolutions. Powerful leadership lays a strong foundation for the triumph of any business. You could be a prospective owner of a business, an employee looking at climbing high on the management ladder or could be managing a business. A suitable and an acceptable form of leadership is a prerequisite to accomplish your business goal.
Labor, capital, land and entrepreneurship contribute to production. Leadership is that one force that integrates everything and devices a framework to work immaculately. Without leadership all the elements of business remain passive and inefficient. Efficient leaders aid in maximizing productivity and in achieving the business goals.
Business leadership encompasses the potential of the management of a business to act decisively, beat its competitors and achieve goals encouraging performance within the organization.
Leadership in any business is crucial because it involves and connects the external and internal stakeholders in the organization and beyond. Tabulated below are a few important rationales as to the importance of leadership in business.
Ensures a BonaFide Vision
A business leader is required to be alert and on his toes to ensure a bonafide vision for the organization and direct the manpower of the enterprise towards achieving that. A great leader makes sure that the ship is sailing in the right direction, even in times of the organization losing its course.
Focusing on ‘Living for your Vision’ makes everything possible. Leadership vision is the secret of leadership success. It tracks beyond the written company statements. The leadership vision transfuses the workplace and is demonstrated in beliefs, goals, actions and values of your organizations leaders.
Builds Morale and Improves Satisfaction
Good leaders encourage productivity of the employees by imbibing confidence and formulating a positive aura which is productive and conductive. Job satisfaction and job performance deteriorate when employees are tensed or stressed. Leaders boost the employee morale aid in improving retention and results in increased job satisfaction.It is the responsibility of the leaders of the workplace to work to fix things and set up the employee morale.
An ideal business leader in an organization will always accommodate diversity. Diversity with respect to millennials, minorities, employment of women in the business must be steered by the management to fabricate a positive action.
The kind of business leadership offered by the management determines whether an organization embraces diversity or not. A few businesses embraces diversity while the others do not, which could be a result of lack of effective leadership.
All organizations mostly have an inclusion policy and it is the duty of the leaders to ensure that diversity exists in the organization. Diversity is important at both the employee and leadership levels in the organization.
Inspiring Collective Identity
Every employee dreams of being identified with the organization he is working in, particularly when they are satisfied and love their work environment. While the business leader furnishes satisfaction and a great working environment, he should also initiate collective identity with the organization. This is mostly true when the employees share experiences and common interest. At times it may get beyond this to integrate an organizational culture that is inherent in the organization, which is not impossible because employees spend large duration of time together.
Coordinates Organizational Needs and Employee Needs
Aligning organizational needs with employee needs is the trickiest but the most important thing every leader must undertake. Employee interests, needs and talents can benefit or trivialize him in the organization depending on how well a leader balances these things to align them with the needs of the organization. A sound leader will figure out a route to efficiently align the needs of the employees and their talents with the goals of the organization.
Ensures Employee Motivation
Ideal leaders motivate employees materially or otherwise to work hard enough to reach the organizational goals. The implementation and formulation of motivational reward system is the ambit of business leadership. This necessitates entrusting credits whenever due i.e. an employee requires to be rewarded when he has excelled.
Employee motivation could be in terms of rewards or by rooting fear of consequences of not performing. Both the techniques have proven to work well depending on the specific style of the leader and the organizational culture.
Imparts Guidance and Initiates Action
Leaders must be in a position to cater significant guidance to the employees. They should also be in a situation to provide support that the employees require to sprout and develop.
It is important that the leaders initiate action by segregating and planning who performs what and by what means the task needs to be accomplished. Not having clarity of plan and a clear communication pattern to reach business goals will fail the organization irrespective of its other strengths. A quick action must be initiated by the leaders in employing all the resources to accomplish business needs.
Encouraging Continuous Learning and Utilizing Necessary Resources
An ideal leader ensures healthy learning opportunities to ameliorate not just delivery and productivity but also in transforming them into better individuals.
A business leader is the person who sanctions the resources to the employees although it is the finance department that procures the necessary resources. An efficient leader will also communicate with his subordinates regarding their suggestions with respect to acquisition of resources. The business leader will then accordingly acquire the resources requested, which reveals that the leaders desire to foresee the employees delivering well with the help of resources availed.
“Leadership is the art of leading others to deliberately create a result that wouldn’t have happened otherwise”.
All thriving and productive businesses and organizations require efficient leaders. Leaders are indispensable when it comes to formulating new strategies and communicating and motivating the employees to improve the productivity of the organization.Efficient leadership with necessary skills and virtues inspire a win-win situation that is bound to foster a cordial superior subordinate relationship and also streamlines work towards a common cause.
Join the Extraordinary Leadership Development Program to get equipped with the best leadership skills to run an extraordinary company. This program will help with understanding the strengths and weaknesses of a leader and techniques for leading the team through change and growth.
We at OPTIMUM NFP, provide specialist Management Consulting Services including Risk Management, Strategic Planning, Change Management, & Board Governance that brings a wealth of practical commercial and nonprofit experience, combined with academic rigour to your nonprofit organisation. At OPTIMUM NFP, we focus on the specific needs of your organisation, not by delivering pre-packaged solutions, but by understanding what you need, and applying purpose developed solutions that truly add value to your organisation.
We would love to hear from you. Please share your thoughts and comments below. If you are seeking advice on how to grow your business, streamline systems and processes, implement software or overcoming challenges to growth, please contact us, directly or submit a request for a complimentary Coffee & a Consult to learn how we can help you CREATE | DESIGN | BUILD an Extraordinary company.