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Leadership Roles and the Effects on Organizational Performance

Introduction: Discuss the role of leadership and how it can impact organizational performance. Effective Leadership is the forefront of most organizations and strategic planning exemplifies this philosophy (Hellriegel and Slocum, 2011, p.297). Organizational dimensions such as leadership, culture, structure and processes are devoted to the effect of strategic planning of an organization. Amongst the dynamic environment of the business world, it is necessary for an organization to consistently focus on improving its competitive strategy. Strategy goes beyond operational improvement. Therefore, competitive strategy utilizes analysis of the structure of an industry and its competitors in order to identify an optimal position. Furthermore, competitive strategy involves continuous improvement through strategic planning. Accordingly,

organizational performance transpires a highly regarded relationship between business strategy, leadership, and innovation (Hellriegel and Slocum, 2011, p.291-297). The conceptual factors of organizational performance are immense. A theorizedassumption that leadership hypothetically impacts an organizations performance, consequently,must incorporate some attention to the hypothesis that leadership is of substantial importance.Therefore, the performance of an organization can be measured by the effectiveness of itsleadership. This includes how effectively leadership communicates and translates the vision andstrategy of the organization to its members. How well the organizations goals, objectives, andstrategic focus is carried out by its members, how focused the leadership of the organization is inutilizing collaboration skills, and the ability to remain flexible in motivating others with anappeal to the common interests of the organization. Motivation is imperative as to how effectiveleadership articulates the organizations performance through the needs of others and inspiringthem to

perform. The relationship between organizational performance and leadership, therefore, can be theorized that leaders help shape organizational culture and, thereby, performance. Performance of the organization can be measured by its strategic direction and extent of the organization over the long-term. The leadership, therefore, can substantiate

successful performance of the organization through their strategic planning and focus on resources within achallenging environment to meet the needs of that organization and subsequently, fulfillstakeholders expectations. Discuss Mulallys leadership style at Ford Motor Company and provide examples of how his actions fit this style. Transformational Leadership starts with the development of a vision, a view of the future that will excite and convert potential followers. The Transformational Leader seeks overtly to transform the organization; there is also an implicit promise to followers that they likewise will be transformed in some way, perhaps to be more like this amazing leader (Hellriegel and Slocum, 2011, p.329-333). In some respects, then, the followers are the product of the transformation. Alan Mulally, CEO of Ford Motor Company, assumedly portrayed as employing Transformational Leadership. Mulally appealed to Ford Motor Company as a leader with zeal and a tenacious agenda; a Transformational Leader oftencharismatic, but not as narcissistic as pure Charismatic Leaders (Hellriegel and Slocum, 2011, p.543-545). Transformational leadership is about implementing new ideas. Since theseindividuals continually change themselves; they stay flexible and adaptable; and continuallyimprove those around them. The transformational leader encourages followers by acting as a role model, motivating through inspiration, stimulating intellectually, and giving individualized consideration for needs and goals.

Alan Mulally encourages participation from all including, executives and managers, andclearly conveys amidst his weekly staff meetings. In an articulated commitment of service toeach division his agenda illustrates belief in others that unites the organization. Transformational leadership empowers people to greatly exceed their previous levels of accomplishment.This dynamic and innovative leadership style challenges and motivates an entire organization, top to bottom. Alan Mulally puts passion and energy into everything, from his previous role with Boeing and his current stand at Ford Motor Company. This type of leadership cares about people and wants them to succeed. The result is individual, group, and organizational achievement beyond expectations (Hellriegel and Slocum, 2011, p.543-545). Discuss how goal setting helped Ford improve its performance. An organization having well-defined visions and mission statements changes nothing.To be able to energize employees to fulfill corporate objectives to achieve those visions and missions should be more than a sign on the wall (Hellriegel and Slocum, 2011, p.192-193).Ford Motor Company was the only major auto manufacturer that did not pursue government bail-out (Song, 2008). To choose a direction, an executive must have developed a mentalimage of the possible and desirable future state of the organization. This image, which is perceived as a vision, may be as vague as a dream or as precise as a goal or a mission statement. Executives and managers should live the vision, be seen executing the objectives toachieve those goals, and constantly communicating the objectives to achieve those goals with their employees. A goal is a long range endeavor for a specified period; it must be specific and realistic. Long range goals set through strategic planning are translated into objectives and activities that will ensure reaching the goal through operational planning. The major outcome of strategic planning, after gathering all necessary information, is the setting of goals for the organization based on its

vision and mission statement. The vision of Ford Motor Company is simple yet powerful, 'to become the world's leading consumer company for automotive products andservices' (Hellriegel and Slocum, 2011, p.543-545). Assess Mulally on each element in communication openness including message transmission, trust, agendas and goals. Alan Mulally demonstrated organizational innovation when he entered Ford Motor Company as CEO. Organizational innovation can be defined as a process of changing the organization by introducing different methods of production or administration. Conveying his ideas and vision as he did with Boeing, Mulally exhibited his innovation that comprised the adoption of ideas from outside the Ford organization in conjunction with the generation of those ideas from within Ford Motor Company (Song, 2008). The message he portrays involves planning initiation, execution, selection, and implementation of the objectives to achieve thegoals set forth by his administration. Focusing on fewer products to produce sustainability improvement and service innovation involving the introduction of a service that is new or substantially improved conveyed his characteristics for the agenda to achieve the goals of a new and improved Ford Motor Company. The success of an innovation is connected to a market forecast of customer needs and wants as well as effective management of the innovation process. Alan Mulallys focus for Ford Motor Company emphasizes on One Ford OneTeam, One Plan, and One Goal. He has high regard for executive management and maintains open communication, in addition to his charismatic mannerism (Hellriegel and Slocum, 2011, p.543-545). Mulally has portrayed an agenda to serve and satisfy not only customers, but employeesas well, increase market share, increase profits, and communication is at the top. As a result, every

successful business requires effective leadership to fully utilize the skills of staff in order to achieve the aims of the business and communication is a key attribute to a successful leader (Hellriegel and Slocum, 2011, p.543-545). Evaluate the effectiveness of Mulallys leadership style and recommend whether he should continue with this style, or use a different style. Alan Mulally has a proven effective leadership style. He is persistent with innovative processes that address numerous issues within the organization to ensure successful development and implementation of a thriving organization. His management responsibilities include reducing the sense of risk; managing the customer interface; training and managing staff performance; and engaging Fords executive team. Collaboration and innovation are thefoundation of Fords work in areas ranging from electric vehicles to human rights in the supply chain. As Ford Motor Company has a proud heritage of improving, Mulally has proven the adaptability of his leadership style to fuse with situational set-backs in economic turmoil (Song,2008). Accentuating the characteristics of an Authentic Leadership style, this recommendation would enable the organization to continue managing through an unstable economy as organizations begin the process of repositioning their assets and liabilities to move forward from the recession (Hellriegel and Slocum, 2011, p.326). Highlighting how successful this tactic can be, Mulally has cemented his reputation asone of industrys great leaders; it is well worth paying attention to what he says, after all, it is extremely rare for one leader to play a major role in two of the worlds top industries. As president of Boeings commercial-airplane division, he revamped the organizations product synthesis and embraced digital technology; he also made Boeing a model for global manufacturing and guided the company through the aftermath of 9/11, which almost crippled the aerospace industry.

Moving forward to 2010 and he is just as successful tackling the challenges facing the auto industry and Ford Motor Company through the Great Recession (Song, 2008). Communication is the key to any successful leader. Everyone has to know the plan, itsstatus, and areas that need special attention. It is essential that leaders model that behavior theyexpect from others. These are challenging times to be a leader and, in the future, whether it is a geographic crisis, financial crisis, energy crisis or environmental crisis, turbulence will be the new norm but, if one can learn from the experience of a leader such as Alan Mulally, an organization will do just fine and can rise to the top.

References Hellriegel, D. and Slocum Jr., J.W. (2011). Organizational Behavior. Mason, OH: CengageLearning. Song, K.M. (2008). Business & Technology: Boeings Mr. Nice Guy: Alan Mulally steps intothe limelight. Available online: