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How Leadership Influences Organisational Performance

Across the world, leaders strive to influence organisational performance in order to meet various goals and objectives. However, approximately 44% of leaders are reportedly concerned with the performance of their teams.

Although leaders are able to determine when their organisation’s day-to-day operations require improvement, leaders of small, medium and large organisations are often unsure of what they need to do to increase their people’s performance. Many are also left hesitant with regards to determining how leadership influences organisational performance.

If you have noticed that your organisational performance is not quite what you had hoped it would be, it may be time for you to comprehend how leadership can ultimately make or break the success of your organisation.

After all, if you can determine how leadership influences performance and enhances your team, you will have the ability to review any changes that need to be made going forward.

To assist you, we have provided just a number of examples below.

Leadership Can Diminish or Enhance Team Relationships

Within the workplace, team relationships are imperative. In fact, 75% of employers and leaders state that positive relationships between team members are crucial. A further 71% of leaders believe that team relationships and engagement is vital if their company is to succeed.

However, leadership is often cited as one of the most common reasons that team relationships fail. This is because when leaders fail to ensure that team members work collaboratively and effectively, relationships break down, often resulting in conflict in the workplace. Regrettably, this can diminish team relationships and prevent organisations from performing to the standard that is expected of them.

Yet, when leaders are quick to address and resolve team conflict, encourage teams to work in harmony and reward teams, leadership can enhance relationships and influence organisational performance.

Leadership Can Inspire People To Achieve Goals and Objectives

Although many employees will have an optimistic outlook on their personal and professional lives, internal and external challenges are often unavoidable. Regrettably, these can cause people to feel somewhat deflated and unmotivated.

One of the most appropriate examples of this is the pandemic that has forced us to press pause on our typical daily routine and adapt to a new normal. Sadly, the pandemic, which has seen 46.6% of the Great British population working from home, has resulted in a more significant number of employees feeling stressed, concerned about the lack of communication from their employers and experiencing burnout. Combined, many are left experiencing bouts of pessimism with regards to their goals and objectives.

However, leaders across the world have the capability to continue to inspire their people to achieve their goals and objectives. From increased communication to assisting people in overcoming any obstacles that they face, leadership can inspire people to outperform, which will influence organisational performance.

Leadership Determines How The Working Environment Is Perceived

Much conversation surrounds how team relationships, internal and external influences and an individual’s thoughts and feelings towards their career impacts organisational performance. However, leadership can also influence organisational performance as it ultimately determines how the working environment is perceived.

For example, leadership that engages employees, motivates them and encourages them to strive towards goals and objectives is known to enhance how employees view the workplace. Those that believe leadership and leaders are committed to creating a positive workplace environment are much more likely to work for an organisation for a prolonged period.

However, leadership that fails to engage with employees, motivate them and encourage them to achieve any goals they have set for themselves, will ultimately impair how the working environment is viewed. Considering this, it may come as no surprise that 25% of employees have left a role because of a negative working environment.

How Leadership Influences Organisational Performance

As determined above, leadership has the capability to influence organisational performance in both a negative and positive way. Leadership that is deemed to be positive, constructive and accommodating will ultimately influence an enhanced performance.

Meanwhile, leadership that is unfavourable, destructive and disadvantageous while eventually have a pessimistic effect on organisational performance.

Considering this, we would ask you to turn your thoughts to how your leaders impact your organisation’s performance?

What do your staff surveys tell you?

What would it take to turn your leader’s performance up from a 6/10 to an 8 or 9/10?

Contact The Leadership Coaches Today

Here at The Leadership Coaches, we appreciate that determining how leadership influences organisational performance can be somewhat challenging.

As a result, we provide a wealth of leadership services to organisations in order to support them as they review changes that may need to be made in order to enhance performance in the workplace.

Irrespective of whether you would benefit from one-to-one leadership coaching to enable you to better your leadership skills, or believe that team coaching would provide your team with the support they need, we can assist you.

By calling us on 03450 950 480 today, we can listen to your needs and determine how we can be of assistance.



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