The corporate community has blazed a trail of leadership in the business world. The pervasive influence of the corporate principles has resulted in the emergence of a corporate culture. This culture defines the businesses contained within it. Even though each business unit expresses its own personality on the economic environment, the corporate culture always describes the general financial climate. Nevertheless, the businesses within a given industry have a say as to how the industry realigns. Therefore, businesses endeavor to develop their own policies and mission statements so at to maintain their individuality.
Many businesses ensure that they achieve their goals and arrive at whatever destination they intend. This differentiates them from other businesses even those that exist within the same line of business. How Leaders Influence Corporate Culture Leaders in organizations play a fundamental role in the policy-making of their firms. The formulation of company policies and the creation of company missions fall under the docket of business leaders. Such policies define the personality of the business. In turn, the personality of the business contributes towards the environment in which the organization exists.
By extension, this environment forms the corporate culture. In this manner, the leader of the organization contributes towards the corporate culture. The leaders normally influence company policies using their position and power to maneuver matters however they deem fit. The policies of a firm encompass its guidelines and procedures. Ethical principles of a firm rank high among the policies of an organization. Thus, leaders in an organization also get involved in dictating the ethical principles that the organization adopts. However, the leaders influence ethical conduct in a much more impressionable manner.
In their positions of high station, leaders of an organization function as public spectacles. Employees working under their oversight observe their actions and imitate their conduct. If the leaders display exemplary and irreproachable ethical conduct, the employees find it obligatory to follow their act. This highlights the power and influence exercised by the leaders of an organization as pertaining to altering the corporate culture and inspiring ethical conduct. In an organization, there exist crucial ethical leaders who play critical, though understated roles.
The board of governors of an organization exercise ultimate authority over all the affairs of the firm. It appoints key figures to fill the highest positions in the hierarchy of the organization. As a result of their action as appointing authorities, boards of governors emerge as the most influential ethical leaders in an organization. Also, the board deals with any outstanding difficulties beyond the scope of the managers. The managers and chancellors take the lead in the daily affairs of an organization. Consequentially, managers act as influential ethical leaders in an organization.
Ethical leaders interact with stakeholders in practical ways. Ethical leaders decide upon the amount of the stock that an organization floats at the stock exchange. The forces of demand and supply determine the amount of stock traded together with the share prices. Ethical leaders of an organization consequently determine the dividends earned by the stakeholders using the share prices as a guide. This illustrates the relationship between ethical leaders and stakeholders. Different Leadership Styles Leadership of an organization can get exercised through a variety of leadership styles.
Business situations utilize the transactional and transformational leadership style. Transactional leadership provides rich rewards based on success and productivity while transformational leadership ensures everyone operates at their optimum level. This dual leadership style results in a high level of productivity and also maximum participation from the team members. It also nurtures individuality and hard work since rewards abound to workers that attain excellence. However, this style inspires little job satisfaction. Autocratic leaders exercise total control over team members.
Even though there exists quick decision-making, job satisfaction becomes excessively lowered. Bureaucratic leadership leads to strict and uncompromising adherence to rules and procedures. This leadership style seriously handicaps the flexibility and creativity of team members. Charismatic leadership inspires enthusiasm into assigned tasks resulting in energized efforts from the staff members. Democratic or participative leadership ensures high engagement in work projects since the team members become directly involved in the decision-making process.
The staff benefits through the acquisition of developed skills and also gets motivated to put forth hard work. Due to resultant high job satisfaction, workers become highly productive. Laissez-Faire leadership arises whereby employees receive excessive freedom to perform tasks and accomplish allocated projects. It has results comparable to democratic leadership. Task-oriented leadership focuses singly on the tasks and results in isolation of the workers. This leadership style creates high job dissatisfaction and turnover.
People-oriented leadership ensures equal treatment of workers whereby the manager pays attention to the personal welfare of the workers apart from official business. Collaborative teamwork coupled with the friendliness of the manager creates a real hub of employee satisfaction. Servant leadership arises due where the managers acquire power through their high integrity, ideals, and ethos. Such leaders lead by example and shy away from the forefront. Their understated and modest approach results in the creation of a positive corporate culture. The morale of the workers also gets heightened.
Conclusion The leadership style adopted by the management has a direct bearing on the ethical decision-making processes. Autocratic or task-oriented leaders fail to inspire their staff workers since their hostile approach serves to isolate their subordinates. The conduct of leaders adopting such a style does not appeal to ethical principles. Servant leadership appeals to the staff since the society in general has suffered a depletion of principled and reliable leaders. Their lofty values and integrity paint them as ideal leaders. Indeed, the leadership style has a direct influence on ethical decision-making.