The significance of leadership in business is evident in the organizational culture of any given company and the commitment of the employees. Good leadership builds, encourages, and promotes a strong organizational culture.
- Organizational culture is defined as a pattern of shared assumptions, beliefs, and values. These shared assumptions, beliefs, and values enable an organization to act on problems and opportunities reflecting the best interest of all parties involved.
- Transformational leaders have the ability to encourage creativity and offer support and encouragement by keeping lines of communication open. In addition, transformational leaders articulate a clear vision of goals to employees. Such leadership fosters organizational culture and motivates employees to achieve the set goals.
- With strong transformational leadership comes a strong organizational culture and organizational commitment. Organizational commitment refers to the emotional attachment to, identification with, and involvement of employees with an organization.
- Resistance to change becomes less evident in organizations with transformational leaders as visions are clearly communicated and employee feedback is encouraged.
- Leadership in business fosters organizational culture and organizational commitment of employees. Such leadership creates profitable organizations, knowledgeable and talented employees, and provides a work environment encouraging change and new ideas.
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