The Impact of Leadership & Culture on Productivity - Executive Development (2024)

By: Sattar Bawany, Managing Director, EDA Asia Pacific & C-Suite Master Executive Coach

The Impact of Leadership & Culture on Productivity - Executive Development (1)

In recent years, many well-known companies have either disappeared or were taken over. Leadership or rather the lack thereof is believed to be one of the contributing factors to their turmoil. Hence, it proves that capable leadership is a critical element in any organization. An organization depends on leadership to guide them through unprecedented changes. Without proper leadership, even the best and boldest strategies “die on the vine”, and their potential is never realized. The quality of leadership talent determines the fate of the organizations, ensuring that their strategic plans are successfully implemented. It also helps them to prepare for a more uncertain future.

Leadership also impacts the organizational culture, and plays a part in the productivity of the organization. Research has shown that highly productive companies, to a high or very high extent, leadership in their companies raise productivity. Hence, this further emphasizes the importance of effective leadership for a successful organization.

Leadership Redefined

In essence, the heart of the leadership challenge that confronts today’s leaders is learning how to lead in today’s VUCA (volatile, uncertain, complex and ambiguous) business environment, allied with the needs to deal with scale and new organizational forms that often break with the traditional organizational models and structures within which many have learned their ‘leadership trade’. So the basic assumption that past experience is the key for future leadership success is more open to scrutiny than ever.

We believe that leadership is all about the ability to have impact and influence on your followers using the right leadership styles so as to engage them towards achieving your organizational results through both Ontological Humility and Servant Leadership approaches blended with elements of social intelligence competencies and socialized power.

From the above definition, leadership can be viewed as the process of social influence in which an individual (leader) could enlist the aid and support of others (employees, team members or followers) in the accomplishment or pursuit of a common goal of the organisation. It involves using one’s role and ability to influence others in some way, which delivers business results and contributes to the organisation’s overall success.

Impact of Leadership Styles on Employee Productivity

True leadership comes from influence, congruence and integrity. A successful leadership involves the management of relationships and communications within a team, and drives the team towards achieving a specific goal. Leadership reflects on the ability of one to “express a vision, influence others to achieve results, encourage team cooperation, and be an example”. It is important to note, however, that one who is in the formal role of a leader may not necessarily possesses leadership skills nor be capable of leading. Leadership is essentially related to one’s skills, abilities and degree of influence, instead of power.

Leadership style is defined as the manner and approach of providing direction, implementing plans and motivating people. Leadership styles vary with personality and situational need. Understanding the different types of leadership is a necessary first step in leadership development. Each of the leadership styles has an impact on reforming and/or creating an organisational culture.

Research has shown that the most successful leaders have strengths in the following emotional intelligence competencies: self-awareness, self-regulation, motivation, empathy, and relationship management. There are six basic styles of leadership; each makes use of the key components of emotional intelligence in different combinations. The best leaders do not adopt just one style of leadership; they are skilled at several, and have the flexibility to switch between styles as the circ*mstances dictate.

Each style has a distinct effect on the working atmosphere of a company, division, or team, and, in turn, on its financial performance. The styles, by name and brief description alone, will resonate with anyone who leads, is led, or, as is the case with most of us, does both. Commanding leaders demand immediate compliance. Visionary leaders mobilize people towards a vision. Participative leaders create emotional bonds and harmony. Democratic leaders build consensus through participation. Pacesetting leaders expect excellence and self-direction. And coaching leaders develop people for the future.

Importance of Employee Centric Culture in Driving Productivity Growth

Putting the customer first has been the mantra of many companies for a long time. But however correct the mantra may be, perhaps it’s time to question the wisdom of it. Some companies already have, that is, put the customer second, after employees. The results are surprising and enlightening – engaged and contented employees and companies cited for their best practices. Moreover, customers are satisfied. This article presents an operating model and proven approach for putting employees first.

Steady, long-term competitiveness requires an organization to be committed to putting employees first and developing quality training programs that are linked to its strategic objectives. Without a true commitment to the employees at all levels throughout an organization, the journey to enhance organizational performance will be an elusive adventure. Quality employees equate to organizational success. Unqualified and poorly trained employees equate to organizational failure.

An organization’s employees have always made the difference between a truly successful organization and a mediocre entity, but it’s amazing how often managers overlook or discount this fundamental recipe for economic survival. Organizations with cultures that focus on their people and that invest in their future will in the long-run, be more competitive than cultures that view employees as mere costs to be reduced in times of trouble.

It is often forgotten that productivity and the economic rewards that go with it are achieved through the people of an organization. A fundamental rule of organizational survival is to put employees first and develop their abilities and skills by establishing a quality training environment.

We give them understanding, help, trust and respect–which are the drivers of employee engagement. There is growing evidence that the range of abilities that constitute what is now commonly known as emotional intelligence plays a key role in determining success in life and in the workplace. Recent research has uncovered links between specific elements of emotional intelligence and specific behaviors associated with leadership effectiveness and ineffectiveness. See Figure 1.

Figure 1 Framework for Employee-First Culture to Drive Productivity

The Impact of Leadership & Culture on Productivity - Executive Development (2)

Adapted from Sattar Bawany, “Results-based Leadership: Putting Your Employees First before Customer & Profits” in Leadership Excellence Essentials, Issue 05.2015.

Putting the customer first has been the mantra of many companies for a long time. But however correct the mantra may be, perhaps it’s time to question the wisdom of it. Some companies already have, that is, put the customer second, after employees. The results are surprising and enlightening – engaged and contented employees and companies cited for their best practices. Moreover, customers are satisfied. This article presents an operating model and proven approach for putting employees first.

Conclusion

Leadership undeniably affects organizational performance, specifically employee outcomes and productivity. Job satisfaction, productivity and organizational commitment are affected by leadership behaviors. Leaders, apart from their actions and personal influence, should be empowered to make the critical decisions and keep operations running smoothly and effectively. They also need to constantly keep themselves up to date with the current affairs and situations. It is critical for leaders to be aware and able to identify the new emerging markets, which may present new business opportunities that they could consider venturing into.

About the Author:

Professor Sattar Bawany is the Managing Director & C-Suite Master Executive Coach with Executive Development Associates (EDA) in Asia Pacific. He is also the Chief Executive Officer of the Centre for Executive Education (CEE). EDA is the Strategic Partner of Centre for Executive Education (CEE) in offering a suite of Executive Development solutions in the Asia Pacific region.

References:

Bonnie Hagemann & Sattar Bawany (2016), Enhancing Leadership and Executive Development – Latest Trends & Best Practices in Leadership Excellence Essentials, Issue 03.2016.

Sattar Bawany (2016), “Transforming the NextGen Leaders in a VUCA World” in Leadership Excellence Essentials, Issue 07.2016

Sattar Bawany (2015), “Results-based Leadership: Putting Your Employees First before Customer & Profits” in Leadership Excellence Essentials, Issue 05.2015.

Sattar Bawany (2014), “Building High Performance Organisations with Results-based Leadership (RBL) Framework” in Leadership Excellence Essentials, Issue 11.2014

The Impact of Leadership & Culture on Productivity - Executive Development (2024)

FAQs

What is the impact of leadership on productivity? ›

Research has shown that in highly productive companies effective leadership raises productivity. Therefore, companies should be including Leadership Training in their New Year plans along with the goals of improved productivity and increased levels of employee engagement.

What are the effects of leadership on workers productivity and performance? ›

The leader is one who leads the employee to increase the productivity and productivity is the most important factor affecting the performance of any organization. Skilled and dedicated leadership can set good values. The responsibility of a leader to make workers feel comfortable in doing the job.

What is the impact of leadership development? ›

Leadership development boosts employee engagement, increases the organization's ability to deal with gaps in the talent pipeline, and reduces the headaches and costs associated with turnover. Great leaders attract, hire, and inspire great people.

What do I know about leadership and productivity skills? ›

Here are 8 tips to hone your leadership skills to become more productive.
  • Have a Clear Strategic Plan. Having a clear strategic plan is the first step in increasing your productivity. ...
  • Set Goals. ...
  • Involve Team Members in Decisions. ...
  • Schedule Everything. ...
  • Mitigate Distractions. ...
  • Take Time to Think. ...
  • Training and Coaching.
13 Mar 2020

How can leadership improve productivity? ›

By implementing modern management techniques that are intended to improve time management, reduce employee stress, and enhance the quality of meetings, team leaders can encourage higher levels of productivity from each team member, boosting the overall efficiency of their organization's operations.

What are the 4 importance of good leadership? ›

Leadership entails; having a clear vision, the ability to communicate the vision to team members, the ability to organize in an effective and efficient manner, inspiring subordinates towards the fulfillment of the organization's goals, and balancing the conflict of interest of all subordinates and stakeholders.

How does leadership impact the workplace? ›

Leaders have a tremendous impact on company culture. They set the agenda, prioritize work, manage, lead, and delegate. Strong leaders provide a sense of vision, purpose, mentorship, and inspiration to those they lead. Today's diverse workforce is reshaping what it means to achieve personal and professional success.

Why is effective leadership so important to employees? ›

Being an effective leader can instill confidence in the team as well as contrib- ute to the growth of the department through improved team productivity. The following examines why leadership is important in the workplace and how employees can develop leadership skills.

How does leadership impact team performance? ›

Effective team leaders ensure that team morale remains high and that workers are motivated to perform well. Leaders can impact morale by helping to instill a sense of confidence and trust in workers so that they take a positive approach to their jobs and the company as a whole.

Why is leadership important 5 Reasons? ›

it has the following importance: Right leadership brings co-ordination among employees which helps in effective work and attainment of organization goal. leadership also acts as motivational tool by showing right path and bringing confidence in employees. it helps in attaining better relation among the team member.

What are the examples of leadership development? ›

Here are 12 examples of effective leadership development topics:
  • Conflict resolution. ...
  • Dealing with change. ...
  • Problem-solving. ...
  • Leading innovation. ...
  • Virtual leadership. ...
  • Project planning and delegating. ...
  • Building trust and respect. ...
  • Coaching to improve employee performance.

What is the most important part of leadership development? ›

Communication skill is the most important pillar of leadership development training.

How can I improve my productivity skills? ›

Here are 10 of the top tactics for maximizing effectiveness.
  1. Keep things simple. ...
  2. Set reminders. ...
  3. Review goals daily (or at least regularly) ...
  4. Minimize time-wasting activities. ...
  5. Use productivity apps. ...
  6. Motivate your team. ...
  7. Avoid multitasking. ...
  8. Offer a wellness program.

How do you answer what leadership skills do you have? ›

Sample answer: “Leadership is about collaboration and inspiring others to do their best work. I aim to be direct and collaborate with my team members by delegating tasks, leading by example, and making sure they know I care.”

Which leadership style is best for productivity? ›

Upon study it has been found that the more productive workers are indeed inclined towards the autocratic leadership style, the least productive workers have more of the laissez-faire leadership styles and the medium productive workers are more inclined toward the democratic style.

How leadership is important to have a productive organization? ›

Leadership is a vital management function that helps to direct an organization's resources for improved efficiency and the achievement of goals. Effective leaders provide clarity of purpose, motivate and guide the organization to realize its mission.

What are productivity skills? ›

These can be skills that help an individual excel at his/her job, but they can also be skills that bring teams together to work more effectively for the greater goal. Examples of productivity skills include time management, organizational and planning skills, problem solving and decision making abilities.

What is successful leadership? ›

Good leaders aren't afraid to make decisions, especially hard ones. They avoid delaying decisions or letting their personal views intervene. They look at things carefully, research well, try and see every angle, and make a decision and then stick to it. This will directly influence employee behavior.

What are the qualities of good leadership? ›

The Top 10 Qualities of a Great Leader
  • Vision. ...
  • Inspiration. ...
  • Strategic & Critical Thinking. ...
  • Interpersonal Communication. ...
  • Authenticity & Self-Awareness. ...
  • Open-Mindedness & Creativity. ...
  • Flexibility. ...
  • Responsibility & Dependability.

What is the impact of leadership to your daily life? ›

Leaders influence a variety of outcomes — including turnover, customer satisfaction, sales, revenue, productivity, and more. Good leadership creates employee engagement and passion, which lead to higher levels of customer loyalty, service, innovation, and ultimately profits.

How does leadership impact employee motivation? ›

Good and effective leadership will be able to increase employee motivation so that ultimately it will create job satisfaction. Raimonda et al. (2015) which shows that leadership has a positive effect on job satisfaction.

How important is culture for leadership? ›

Leadership culture is important to building organisational culture. Leadership culture is how leaders interact with one another and their team members. It's the way leaders operate, communicate, and make decisions. And it's about the everyday working environment: their behaviors, interactions, beliefs, and values.

What is the most important function of leadership? ›

Motivation

Motivating employees, inspiring them, and fostering enthusiasm for projects is one of the most important leadership qualities and a key to success because only motivated employees are good employees.

Why leadership is an important value? ›

Why are leadership values important? Leadership values are important because they help you determine how you want to achieve your goals and what type of leader you want to be with your team. Your core leadership values play an important role in guiding how you make decisions and what actions you take on a daily basis.

How can leadership skills be improved in the workplace? ›

9 Ways To Develop Your Leadership Skills
  1. Practice discipline. A good leader needs discipline. ...
  2. Take on more projects. A great way to develop your leadership skills is to take on more responsibility. ...
  3. Learn to follow. ...
  4. Develop situational awareness. ...
  5. Inspire others. ...
  6. Keep learning. ...
  7. Resolve conflicts. ...
  8. Be a discerning listener.
12 May 2022

What three strategies do you have for productivity when working in teams? ›

Getting the most out of your team can be daunting, but these three strategies can help.
  • Set effective standards for communication. According to McKinsey Global Institute, when the employees are connected, productivity is expected to increase by 20% to 25%. ...
  • Understand how your team works. ...
  • Limit distractions.
18 Jan 2017

Why is leadership important in simple words? ›

In simple words, leadership is about taking risks and challenging the status quo. Leaders motivate others to achieve something new and better. Interestingly, leaders do what they do to pursue innovation, not as an obligation. They measure success by looking at the team's achievements and learning.

What does leadership mean in one word? ›

Then again, maybe we can define leadership in one word... Art. “Leadership is the art of getting someone else to do something you want done because he wants to do it” ~Dwight D. Eisenhower.

What is a good smart goal for leadership? ›

Examples Of Leadership SMART Goals

Specific: Develop communication aptitudes that lead to 25% fewer inquiries during group gatherings. Measurable: Reduction of inquiries during meetings by 25%. Achievable: Attend weekend workshops on communication skills.

What are the 2 most important key to effective leadership? ›

They found that: Trust and confidence in top leadership was the single most reliable predictor of employee satisfaction in an organization. Effective communication by leadership was the key to winning organizational trust and confidence.

What is the greatest strength of a leader? ›

The 8 Leadership Strengths to learn:
  • Self-awareness.
  • Situational awareness.
  • Excellent communication skills.
  • Effective negotiation skills.
  • Conflict resolution skills.
  • Collaboration skills and intercultural sensitivity.
  • Ability to work with different personal styles and approaches.

What is an example of productivity? ›

What is a productivity example? Productivity is commonly measured in output per worker or output per worker per hour. For a manufacturing company, a measure of productivity might be the number or value of the finished products each worker can produce within a given time.

What is an example of productivity in the workplace? ›

Breaking large projects into smaller tasks. Using the Pomodoro Technique (work in short 25-minute intervals) Developing a restorative morning routine. Prioritizing your to-do list to focus on the most important tasks.

What are productivity goals? ›

Productivity goals are targets to increase the amount of value you create in a unit of time such as an hour or month.

Can you give me a specific example of your leadership skills? ›

Taking a lead role in a school project is a great example of leadership experience. If you delegated tasks, chose the overall strategy for the project, or anything like that, that's leadership! Organizing a team presentation can also be considered leadership.

How would you describe yourself leadership qualities? ›

"I possess integrity, problem-solving skills, and self-motivation. I have integrity and when it comes to tough decisions, I am ethically and morally grounded and would not compromise others. I love to problem solve and try to figure out an easier or quicker way of processes without losing quality.

What is the relationship between leadership and productivity? ›

The leader is one who leads the employee to increase the productivity and productivity is the most important factor affecting the performance of any organization. Skilled and dedicated leadership can set good values. The responsibility of a leader to make workers feel comfortable in doing the job.

What are the 4 productivity styles? ›

In fact, when it comes to productivity styles, there are four: Prioritizer, Planner, Arranger, and Visualizer. “The Prioritizer's thinking is very linear and analytical.

› 2020/03/13 ›

Lombardi was one of the most successful coaches of all time. He knew that the key to winning was productivity. With efficient systems and practice, he could dev...
Leadership qualities and skills can be improved through continuous practice and purposefully working towards building your expertise in a particular area, subje...
Leadership skills are some of the most in-demand soft skills. So, what does it take to be a great leader in the workplace? Whether one is a team leader, a proje...

How leadership is important to have a productive organization? ›

Leadership is a vital management function that helps to direct an organization's resources for improved efficiency and the achievement of goals. Effective leaders provide clarity of purpose, motivate and guide the organization to realize its mission.

How does leadership impact the workplace? ›

Leaders have a tremendous impact on company culture. They set the agenda, prioritize work, manage, lead, and delegate. Strong leaders provide a sense of vision, purpose, mentorship, and inspiration to those they lead. Today's diverse workforce is reshaping what it means to achieve personal and professional success.

Which leadership style is best for productivity? ›

Upon study it has been found that the more productive workers are indeed inclined towards the autocratic leadership style, the least productive workers have more of the laissez-faire leadership styles and the medium productive workers are more inclined toward the democratic style.

What is productive leadership? ›

The mindset of a productive leader is about inspiring others to take action and grow. A great leader knows how to set their ego aside and focus on helping their team. They understand how to listen and delegate properly. They understand the importance of strong relationships and trust.

What is the main importance of leadership? ›

They are important skills to have because a good leader is able to bring out the best abilities in his/her team members and motivate them to work together in achieving a shared goal. A good leader is also organized and keeps the team on track and focused to avoid delays.

What are the 5 most important roles of a leader? ›

  • The Visionary. A good leader clearly demonstrates the expected behaviour of the team. ...
  • Leader Must be a Strategist. Leaders must be strategic thinkers! ...
  • Establish Communication. ...
  • Effective Role Model. ...
  • Leader must be a Talent Advocator. ...
  • Leader must be an Inspiration.

What is the positive impact of leadership? ›

Positive leadership builds loyalty and trust. When an employee knows his/her boss cares about him/her and seeks out his/her best interests, trust is established. When an entire company is led by an individual with a positive outlook and believes in a better future, it builds loyalty, trust, and so much more.

What is the impact of leadership to your daily life? ›

Leaders influence a variety of outcomes — including turnover, customer satisfaction, sales, revenue, productivity, and more. Good leadership creates employee engagement and passion, which lead to higher levels of customer loyalty, service, innovation, and ultimately profits.

How does leadership impact employee motivation? ›

Good and effective leadership will be able to increase employee motivation so that ultimately it will create job satisfaction. Raimonda et al. (2015) which shows that leadership has a positive effect on job satisfaction.

What is your leadership style best answer? ›

Example Answer #1:

“I would describe my leadership style as direct, and leading by example. I enjoy delegating tasks and taking the lead on projects, but I also like to stay involved and inspire my team by showing that I'm working hands-on to help them, too.

What are the 4 productivity styles? ›

In fact, when it comes to productivity styles, there are four: Prioritizer, Planner, Arranger, and Visualizer. “The Prioritizer's thinking is very linear and analytical.

What is effective leadership? ›

Effective leadership is about executing the company's vision (or redefining and improving it, in some cases) and setting the tone and the culture for that particular organization. Leadership means creating and planning, securing resources, and looking out for and improving errors.

What is the full meaning of productivity? ›

Productivity, in economics, measures output per unit of input, such as labor, capital, or any other resource. It is often calculated for the economy as a ratio of gross domestic product (GDP) to hours worked.

What are five ways to be efficient and productive? ›

Share this post
  1. Stop multitasking.
  2. Set small goals.
  3. Take a break.
  4. The five-minute rule.
  5. Time blocking.
  6. Delegate.
  7. Limit distractions.
  8. Do the hardest thing first.
4 May 2022

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