Importance of Leadership in Business

To rate the leadership capabilities of the managers in your organization, consider how well each manager does the following.

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It has been said that without leadership, all other business elements lie dormant. Strong leaders can help an organization to maximize productivity and achieve business goals, whereas weak leadership can hurt productivity and put the health of the business in jeopardy. Leadership is not one blanket characteristic that cures all ills, however, there are many different elements that must be present for an organization’s leadership to be considered adequate.

It should also be considered that there are many different effective-and ineffective-leadership styles. Just because one manager is jovial while another is refined doesn’t mean that either style will be more effective than the other. To rate the leadership capabilities of the managers in your organization, consider how well each manager does the following.

Provides Guidance

Managers should be able to provide meaningful guidance and advice for employees. If needed, managers should be able to show employees how to perform their job tasks more efficiently and effectively. Managers should also be able to provide the support that employees need to grow and develop.

Motivates Employees

Good leaders motivate employees to work hard and meet organizational needs through one means or another. Some leaders may inspire employees to work hard, while other managers may cause employees to fear the consequences of not working hard. Both methods work to drive motivation and one may work better than the other depending on the manager’s specific style and the culture of the organization.

Initiates Action

It is critical that leaders initiate action by planning out who will perform what tasks, when the tasks will be completed, and by what means the tasks will be accomplished. Without a clearly defined plan to complete business goals and good communication between managers and relevant parties, an organization will fail no matter how strong the other aspects of managerial leadership are. Managers should be able to initiate fast action to utilize human resources to complete business needs.

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Builds Morale and Improves Satisfaction

Good leaders drive employee productivity by building confidence in employees and creating a positive environment that is conducive to productivity. When employees feel stressed or distracted, job performance and job satisfaction suffer. When managers build morale, it can help to improve retention, increase employee job satisfaction, and may favorably impact the bottom line.

Coordinates Employee Needs and Organizational Needs

One of the most important things that every manager must do in order to be effective is to align employee needs and organizational needs. Employee talents, interests, and scheduling needs can all either benefit or detract from an organization, depending on how well a manager works to align these things with organizational needs and goals. The best managers will find a way to effectively align each employee’s needs and talents with the organization’s goals.

Delegates Responsibilities

It is possible for leaders to delegate too much and it is possible for leaders to delegate too little. Strong leaders know what to delegate and what to handle so that the organization is as productive as possible. Adequate delegation is also necessary for maintaining employee satisfaction, as employees may take advantage of a manager that delegates too little and resent a manager that delegates too much.

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