Leadership in Business: The Main Aspects

The business world is very much different today than it was a few decades ago. Technology and globalization has made it more exciting and also very difficult to establish a company and sustain its profitability. The same thing can be said with an existing organization that may have had great success in the past but can easily be put to ruin with how customers and suppliers do business in the 21st century. The external forces can be very difficult to manage but even with the radical improvements in communication, transportation and e-commerce a company can only succeed if there is a group of effective leaders that constantly seek to improve operations. Without good leaders an organization can have all the latest gadgets and have access to resources but it can never go to the next level. Good leadership is needed in every level of society but its absence in business organizations is not hard to miss.

The goal of this paper is to review what has been learned in the past few weeks of studying the various aspects of leadership. I will be able to do this by examining the materials provided by the university and then using my experience as a leader to add my personal commentaries and by doing so reveal also how the course has helped me improve my leadership skills. In this regard, one of the assessment tools that will be used is the identification of S.M.A.R.T. goals. These goals will help me focus on the areas of my leadership ability that require improvement.

Importance of Leadership

Imagine a very sophisticated sports car that has more than three hundred horsepower under its hood. It may be brand new or well maintained but it will not run without a competent driver behind the wheel. The same thing can be said of a leaderless organization. It may have all the necessary equipment and even the required number of workers but if there is no leader then the company will quickly become obsolete and useless. A good leader is more than the driver; he is also the repairman of the said sports car. Moreover, he is also the designer and the one who will propose innovative changes to the overall design of the vehicle. This illustration will help us understand the critical role of the leader within the organization. This is the reason why great leaders are paid well by shareholders of a company. Without them it would be impossible to achieve something significant.

While it is clear that leaders are needed in all levels of society, it is also common knowledge that there are many who are afraid to lead. This is because leadership entails hard work. Many would prefer to take it easy and not be encumbered by multiple responsibilities. This mindset is wrong, but the reality is that leading people is an extremely difficult job. The low-rank employees can complain and make multiple suggestions with regards to the best way to solve their problems. But for a leader there can be no excuses because he is the one who is responsible. This is merely the beginning because the leader will have to make the hard decisions. He will have to gather all ideas and suggestions and then decide if he will reject or accept one. There is always the constant pressure to make decisions and there is no respite from this responsibility.

If the leader finds no satisfactory solution then he will have to create a strategy or use available resources to help him determine the right path. But then the most difficult thing is this: how to know when to pull the trigger. Kristine Shaw hit it right on the head when she said that there are two tracks that must be followed in making decisions: 1) the what and 2) the how (Regis University, 2009). Although a lot of hard work must be done to reach an agreement on what is essential, too many times the most challenging portion is to determine how to reach a particular goal. The ability to utilize the right resource and to tap the right personnel and to adapt a particular system is the mark of a good leader. This is the reason why many shy away from leadership roles. This is the reason why there is a desperate need for more leaders to arise in every sphere of society.

Quality Leaders Wanted

While there is a need for the number of leaders to increase in proportion to a growing population and in proportion to an expanding organization, the more pressing problem is the lack of quality leaders. A person can be appointed to a particular position but this does not mean that he will become a competent leader. A title will not make one an effective leader of men and women. Quality leadership can be developed and the skills can be strengthened each passing day. But there must first be the realization that there is no magic formula and that everyone begins at the lowest level but then each one can grow and mature into someone who can handle the pressure, be able to absorb all pertinent information and finally make the correct decision.

I believe that quality leadership is seen in the way a leader makes decisions. The decisions made must produce results and improve the position of the organization. It also made manifest in the way leaders deal with power and politics in the office. While delegating authority is an admirable skill, an effective leader is willing to do the dirty work such as dealing with power struggles between supervisors etc. While different leaders operate in different environments, the challenges that they face, the need to deal with problematic personnel and other difficulties require a leader who is not afraid to make decisive decisions. A leader who is accustomed to making decisive decisions can be easily fooled into thinking that he has already matured as a leader but making decisive decision is just part of the requirement – a leader must lead his organization to new heights and this means that he must not only function as a manager but someone who is willing take risks.

While it is the ultimate goal of the leader to make correct decisions all the time, there is also the need to watch out for perfectionism. If a leader is afraid to make mistakes then that fear can paralyze him to make decisions. I remember reading about an article about U.S. Marines and one officer said that they train their men to make decisions because they believe that a wrong decision is better than the fear of making the wrong one. I believe that the key term is decisiveness; a leader must be decisive and not freeze because of fear. Great leaders in history were not intimidated by the unknown and they went ahead even though they are not 100% sure that they will emerge victorious. I am not saying that we have to be reckless but I am just thinking about leaders who could not pull the trigger because of fearing too much about their reputation. By the time that they are ready to make the decision their competitors has taken over.

This is in relation to what Trent Cunningham said about keeping the momentum because if the leader will stop and hesitate then the competitors will run roughshod over his organization (Regis University, 2009). Indecisiveness can be perceived as a weakness by the subordinates and will make it hard for them to trust their leader. It is also possible that they will feel frustrated. A leader must try to find out what is hindering him from making tough decisions. The fear of failure must be eradicated from his system and he must realize that he is paid to make the most difficult decisions and if he will hesitate then the whole organization can be in peril. These are just some of the more important things that I learned in the study on leadership.

IQ and EQ

The challenge of leadership is made more difficult by the radical changes in the marketplace, which is brought in great part by advanced technology. There is no need to elaborate that today’s modern marketplace is totally different from what many are used to a mere decade or so ago. In today’s world the buzzwords are linked to digital and information technology. While leaders must learn about the social aspect of work there is of course a great need for leaders who continue to strive to develop the IQ part of managing and leading an organization. For me a person’s IQ can be enhanced by continuous training and learning. A 21st century leader cannot limit himself to learning only about the traditional aspects of business; he or she must dive into the world of computers and the Internet. As a leader I need to be constantly updated regarding technology especially when it comes to computers that help link the company and the customers.

IQ is important but without the balancing factor of EQ a leader can be all brains but does not have the emotional capacity to deal fairly with his subordinates. People are not robots that can be programmed to perform a specific task. Most of the time they will need a coach who will guide them and not just a taskmaster who will issue commands and force them to do things that they do not understand or even hate. A leader with a high EQ does not have to be their friend but he must be someone who understands that social aspect of leading an organization.

I have no struggle when it comes to EQ. I am very in tune with other people’s thoughts and feelings. I may not always empathize verbally, because I prefer a person to open up to me. I encourage those around me and am willing to bend over backwards to accommodate my team and promote their health and well being. I believe that when you become a leader, it becomes your job to serve your team, not vice versa.

EQ score says I have an average emotional intelligence. People who score like that may feel that their ability to understand and deal with their own emotions and those of others is acceptable but could still use some improvement. I find it relatively easy to deal with setbacks in my life and generally able to control my moods. I also find it relatively easy to motivate myself to overcome obstacles and reach goals. I also find social interactions to be quite easy and fulfilling, for several reasons. I am also comfortable allowing myself to get close with others and feel comfortable being vulnerable enough to establish intimacy. I also like to offer support and offer good advice. This is the reason why I can easily interact with employees and make it easy for them to speak their minds. But I need to give feedbacks in a more constructive way and I need to give it more frequently.

Communication

Trent Cunningham provided a clear illustration of the difficulties faced by many managers in the corporate world. It is the assumption that once they had “communicated” an idea or a directive to their subordinates, the same will do everything in their power to complete the task at hand. Cunningham said that it is more complicated than writing a memo and then e-mail it to the employees (Regis University, 2009). I believe that the sending of the message and the receipt of the communiqué does not complete communication. You can only be assured that communication has come full circle if the manager receives a certain kind of feedback from the employees. The correct feedback would be the acknowledgement that they understood the underlying meaning of the message.

This is very much evident when it comes to starting a new project or launching a new product. The success of previous product launch or the adaptation of a new system must stay in the past. This time around the leader must realize that the project or program that he wants to initiate might be a very novel concept which is in all likelihood familiar only to him and not to his subordinates. Thus, the leader must anticipate a lot of back and forth communication as the subordinates would like to seek clarification and further instructions with regards to a new initiative.

An effective leader must clearly communicate the vision and mission of the company. There are different kinds of businesses and there are also many that are similar to our business organization, so I must delineate the purpose and direction of the company to the employees. This is an important reminder to all leaders, especially those who wanted to do something more radical and not just doing things in the usual manner. A good example is the Greyston Bakery located at Yonkers, New York. The purpose of the establishment is not just to make quality cakes and pastry products, their mission is to help the community by providing jobs for ex-convicts and other people who cannot easily find a job because of their educational background and criminal behavior in the past.

The business model of Greyston is something that is hard to study and hard to emulate. But if I am the CEO of that company the most difficult thing is to make the employees understand that the goal is not just to make money and quality products but also to help people become productive members of society. This is crucial because allowing former drug pushers and those with criminal records to work in a bakeshop can be very challenging at times. If all the workers do not have one mind and one heart with regards to the overall purpose of the business then it can be a cause for conflict. For instance, Rodney Johnson was earning at least $2,000 per week and now he is only getting like a quarter of that amount. This can be discouraging at times but the leader must remind Rodney that he had to stay focused or else he will have to go back to prison.

Motivation

A leader must always desire to challenge and motivate those who are under his influence and authority to strive to be the best. They must always desire to do what is right and beneficial for the organization as a whole. As a result the employees will find it easy to aim for the goals set by the leaders. They will also find it a joy to work in the company as compared to drudgery when they are no longer enthusiastic as to the direction that the leader is taking the company. A motivated employee can do the impossible but a discouraged worker will always find an excuse why they could not reach their quota or achieve a particular goal set by the company.

According to experts in the field of human motivation, one can define this aspect of human behavior as a goal directed and characterized by the process of selecting and then directing particular voluntary activities in order to accomplish an objective (Kamal et al., 2009). This simply means that if employees are not motivated to do a particular task then they will not do it. Even if the leader is a good communicator and able to explain the rationale for a particular initiative or program there is still no guarantee that the workers will heed the instructions of the manager or supervisor. This is because it will require a change of behavior on the part of the subordinates and it would be the kind of change that they are reluctant to make.

It can be argued that performing a voluntary activity requires conscious thinking (McClelland, 1987). If this is true then employees can only be motivated to change their behavior if the leader will be able to convince them to change the way they think about a particular subject matter. This may require training and sometimes a lot of one-on-one interaction between manager and employee. The leader must be willing to listen to what they have to say in order to understand the mental hurdles that the employees are struggling with. It is also important to know why the employees feel that it would be disadvantageous for them to adhere to the initiate being proposed by the manager.

Solving Problems

I had an insight while listening to the words of Kristine Shaw who said that a leader must be innovative (Regis University, 2009). Most of the time solving problems does not always require technical skills because the problem that organizations face are oftentimes new and never been encountered before. Thus, management books and case studies analyzed in business schools will not be of much help in this regard. A good leader will therefore have to learn to think out-of-the-box so to speak in order for him to see beyond the obvious.

One way to be innovative is to consider the current way of gathering information. If the leader simply relied on their own analysis of the situation then it is possible that they are simply making assumptions and yet unable to fully understand the root cause of the problem. There are times when the leader must allow his subordinates to speak up. I believe that a mediocre leader will be threatened by the idea of allowing his subordinates to speak their mind. I am not suggesting that the leader will relinquish control but he must allow his direct reports to make constructive criticisms. It is only by allowing dissenting opinions to rise up to the top can a leader expect significant and useful inputs from the ground up. This will also enable the leader to have a bird’s eye-view of the company. It would be detrimental for a leader to only hear what he wants to hear.

There is no need to belabor the point that solving problems must require extensive knowledge about human resources. According to one expert, “The overall purpose of HRM is to ensure that the organization is able to achieve success through people” (Armstrong, 2000). This was clarified with the statement that an organization must first obtain and then retain skilled, committed, and well-motivated employees (Armstrong, 2000). I realize that I need to increase my knowledge about HRM because this is a key component when it comes to judging my leadership capabilities. If I can solve problems through people then it is a mark of effective leadership.

To the Next Level

An effective leader knows how to strategize. He is not only good at analysis but he must also be equally efficient at making strategies. These strategies can bring them to the next level of profitability and a greater share of the market. For those who are in non-profit groups strategies can help the organization reach a greater level of influence in the community and attract more support from sponsors etc. The need for leaders who understand strategy-making is perhaps the reason why Ernie Sampias was not impressed with those who have an MBA degree. According to him a graduate from a business school may be an expert when it comes to theoretical principles of business management but may lack other necessary skills required to lead people. I have the same thoughts, an MBA holder may be skilled in reading reports but it is quite another thing to explain a strategy and then make the subordinates follow the specifics of that strategy until it will bear fruit.

I believe that Kristine Shaw was right on target when she said that the leader is not only the one who must be the point man – or like a bus driver takes the steering wheel and drives the organization so that it will reach its destination – the leader must also determine direction, and knows how to find the correct route. There will be no one who will supply this information for him. The leader must have the capability to do so.

Shaw also pointed out that a ton of data can be analyzed and processed using complicated methods but at the end of the day the leader is merely looking at history and there are times when the lesson learned is only applicable in the past. A good leader must see the connection between two disparate ideas and the find a way to make a prediction of what will happen in the future. If he will develop this skill then he is better prepared to guide his team and the business organization forward.

This ability to see what lies ahead is also a very important skill because it will allow the leader to prepare the organization for anticipated problem areas and the whole team can make adjustments in order not to collide with something that they did not expect. Thus, a good leader will be able to save the organization from harm; while other companies may sink this one will continue on its journey to success.

S.M.A.R.T.

A review of teaching tools I came to the realization that there are still so many things that I need to focus on. But I also need to remind myself that I had to specific. It is not enough for me to say that I need to be a better leader; I need to zero in on an aspect of leadership that I can work on. I will be able to improve my overall leadership capability by developing an action plan that is guided by the acronym S.M.A.R.T. which stands for specific, measurable, attainable, relevant, and time-based (Reeeves, 2002). Thus, I cannot simply say that I need to be more involved in the day-to-day operations of the company, I need to be more specific than that for instance: to establish a routine wherein I will arrive for work at a specific time. If I used to report for work everyday at 10 in the morning, I can change this habit by reporting at 9 in the morning.

Aside from being specific the objectives has to be measurable and time-based. This will create a quick feedback when it comes to my progress. If the goal was not achieved in the given time period then I will know that more work is needed. It will also prompt me to look for flaws in the plan and how the methods can be refined in order to get the desired results. The most important thing is to set goals because without it then I am aiming for nothing and I cannot expect positive change on my behavior. But before going any further it is imperative to discuss my strengths and weakness when it comes to leadership.

Let me begin by saying that I am both a manager and a leader. I would like to think that I am more of a leader than a manger but I think that even if I can wear two hats at the same time I am more of a manager than a leader. It is easy to understand what a manager can bring to the organization but at the same time I am aware that a manager can be all about maintenance which is good in the short term but can be disastrous in the long term. This is especially true in the 21st century when business rely very much on Information Technology the type of technology that continually changes on a yearly basis. For instance a few years back no one has heard about eBay or Facebook or Twitter. These are means of communication and at the same time advertising products. Although social networking sites like Facebook is less of a business tool as eBay it can be said that a great number of customers can be easily influenced by these social networking sites.

A manager can bury his head in his work and become oblivious to the fact that the whole planet is doing business using new tools. He has to learn to adapt to these changes and the moment he makes an assessment of the external environment and attempt to predict what can possibly happen in the next few years, he ceases to be a mere manager but has stepped into the shoes of a leader. This is the person that I want to be. I cannot remain as a manager. Although I am proud of what I was able to achieve as a manager I know that I should not stop growing and the next goal for me is to become a more effective leader.

The Plan

Before going any further it is extremely important for me to know about my leadership style. This will help me to tailor-made by S.M.A.R.T. goals in accordance with my strengths and weaknesses. Based on the discussions and review of related literature I came to realize that I gravitate towards “participative leadership” because I would like the members of my team to be involved in the deliberation of the problems and in the process they will feel what it is like to develop the solution to said problems. This leadership style is in harmony with my idea of quality leadership. I also came to realize that in order for me to improve in this area I must not neglect communication skills. In this regard, I believe that I adhere to the principles of “supportive linguistic” style of communication. It is the idea that communication uses verbal and non-verbal techniques and the leader should not only listen to the words said but also how the person tries to express himself. How I come to understand my leadership style and the way I communicate to people will be helpful in developing the plan to improve my leadership capability and lead the company to greater heights.

A management guru said that without goals an organization can be compared to a ship without a sail and rudder – it is at the mercy of the wind ant it will drift but not be able to move purposefully (Stark & Flaherty, 1999). Using the principles of S.M.A.R.T. goal-setting I need to write down my goals and then to compare it against my current capabilities and perceived weaknesses. In order to have an effective plan I need to limit the focus on three areas: a) the need to be more of a leader than a manager; b) the need to improve on communication skills; and c) the need to be more decisive when it comes to making decisions.

Since S.M.A.R.T. goal-setting is very specific then I must identify goals that can be measured on a daily basis. So the following is a list of objectives that I can use as a guide in the next 12 weeks. My behavior in relation to these objectives will help me determine if I am improving or regressing. These objectives will be a quick self-assessment at the end of the day in order for me to find out if I am doing everything in my power to become a more competent leader. These objectives are listed as follows:

  1. During our weekly meeting I will spend more time discussing the need to increase our market share and to challenge those who are present to find out what can be done to achieve this goal. I will make a conscious effort every meeting to not talk about maintenance issues but to make condition the minds of the employees that there is going to be a major change that will happen in the next few weeks. For this purpose I will ask my secretary to carefully write down the minutes of the meeting and at the end of every meeting I will be able to review what was written down and be able to find out if I reverted to being more of a manager and a leader. For 12 weeks I must purposely lead the organization and be able to steer the organization to a new direction. At the end of 12 weeks I must be able to announce to those who are in attendance of a plan on how to bring the company to the next level.
  2. For the next twelve weeks I will dedicate three hours per week to talk to all the supervisors and to ask them about their personal thoughts with regards to increasing the market share. I will have a one-on-one conversation with each one. During these discussions I will use a tape recorder to document what has transpired in the said meetings. I will attempt to speak less and allow the supervisor to express what he believes can be done to achieve the said goal.

If the supervisors are able to say more and able to express themselves more freely then that is the mark of success. But if after reviewing the taped conversation I find myself to dominate the discussion then it means that I have yet to improve on my communication skills. I have come to realize that communication is a two-way process and it would be detrimental to the organization if I will monopolize the conversation.

While it is important for the supervisors to speak up, I need to have a follow up meeting with them. The following Tuesday I will tell them briefly what I thought of their discussion then after giving them the feedback that they needed I will proceed with the original plan of drawing out from each supervisor the needed information regarding the need to improve our operations and therefore earn a greater share of the market. This will go on for 12 weeks. The pattern is asking them about their ideas and then the following week would be feedback, clarifications and more discussion about the short-term goal of increasing market share.

After the end of 12 weeks I must be able to make a decision based on the information that has been gathered from the various members of the organization. I was able to find out about their thoughts regarding the goal of increasing market share now I must act decisively and make a decision regarding the said information. For instance, if the data that was gathered will reveal the need to create a new product then I will start the initiative to start developing a new product. I will instruct those who are in-charge of research and development to look into this matter and begin the process.

Summary

I need to be a competent leader because the success of my organization depends heavily upon my maturity from an average leader to someone who is highly competent. I am very pleased with the result of my assessment because I realize that I may not be a genius when it comes to leadership skills but I know how to run an organization and it would not be impossible to increase my capabilities with the help of training and spending more time in studying leadership principles.

I realized that even if I have an advantage when it comes to EQ I can still improve my communication skills so that those who are under me will be able to express their thoughts on how to improve the performance of the company. I was able to identify that my major weakness is the tendency to become more of a manager than a leader. Although I was able to point out that a good manager is also indispensable to the maintenance of double-digit growth for instance, it can also be a trap because the company is focused on maintaining the status quo. In the 21st century technology and methods of doing business can change in the blink of an eye I cannot afford to remain a manager – I need to lead my company to the next level.

The S.M.A.R.T. goals were developed around a central idea and it is the need to increase market share. By focusing on how to reach this goal I was able to see areas of my leadership abilities that require improvements. I realize that in order for the company to make drastic improve this to challenge our competitors I must learn to lead more than manage, to learn how to generate feedback much quicker and finally to develop the skill of making decisive decisions. These three areas: leading, feedback, and decision-making require careful attention. The challenge is to implement strategies that are time-bound. My behavior with regards to these three areas of leadership must show a significant improvement in a 12-week period. I will be able to track changes using minutes of meetings, a tape recorded one-on-one conversation with supervisors and then a written plant that will explain a decisive decision that I have made after the task has been completed in a 12-week period. If I find myself leading the company in transition and initiating a new strategy and at the same time encouraging the employees to join in the process to find out how to increase market share then I had succeeded in improving my leadership skills.

References

Armstrong, Michael. (2000). Strategic Human Resource Management: A Guide to Action. UK: Clays Limited.

Kamal, S. et al. (2009). “Motivation and Its Impact on Job Performance.” Web.

McClelland, D. (1987). Human Motivation. New York: Cambridge University Press.

Regis University. (2009). Video and Various documents containing information regarding Leadership.

Reeves, Douglas. (2002). The Leader’s Guide to Standards: A Blueprint for Educational Equity and Excellence. CA: Jossey-Bass.

Stark, P. & J. Flaherty. (1999). The Competent Leader: A Powerful and Practical Tool Kit for Managers and Supervisors. MA: Human Resources Development Press, Inc.

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