How bad leadership affects organization Essay

Jean Lipman-Blumen defined bad leadership as, â€Å"A toxic leader is one who engages in numerous destructive behaviors and who exhibits certain dysfunctional personal characteristics that inflict some degree of serious harm on either individuals or the organization. † (Bad Leadership: Antecedents and Prescriptions) Where there is a bad leadership present in the organization and workplace, this could lead to harmful consequences. For example, accidents, loss of productivity, cost ineffectiveness, low quality of product, communication gab, employees’ absences, industrial sabotage, etc. However, reasons for poor leadership could take place from a number of reasons such as leaders who possess poor leadership skills. And this could affect employees, co-workers and not surprisingly, leaders as well. In addition to this, leaders with insufficient skills may be worried with their own problems and may slow down any business activity within an individuality or group. A research study has revealed the fact that inadequate leadership skill significantly affects on other coworkers and inexperience member of the organizations. Because of poor leadership skills of a leader, an organization may suffer from pessimistic work views, lack of vision towards the company’s future goal, shortage of qualities to motivate workers, lack of social skills, and lack of inspiration. Obviously, leaders are paid to solve problems and not just to hold them. Thus, leaders are paid to provide good leadership which results in the achievement of a company’s goals. Kevin Dwyer, Poor Leadership; Poor Results 2006, said that, â€Å"Leaders must take it upon themselves to make â€Å"it† happen. Shuffling off responsibility for action to committees, subordinates, government departments and forever bemoaning the lack of action is not good enough. Leaders are in the position of being able to both diagnose the ailment and treat the ailment of an organization. If they won’t do it, who will? † (Dwyer, n. d. ) Communication is considered the life blood of every organization. Hence, lack of communication leads to negative outputs. Besides this, a leader who possesses poor communication and social skills can be harmful for a company. Because of poor leadership, communication often fails and this leads to several work mistakes and unwanted business expenses. For successful business operations, it is important that leaders should be equipped with great communication skills which can be applied in the organization in order to achieve a company’s desired objectives. In other words, Robert Hogan, Gordon Curphey, and Joyce Hogan wrote in American Psychologist that â€Å"abusive and incompetent management create billions of dollars of lost productivity each year. † (Stanford Business Magazine May 2006). More than 290 professionals were taken into consideration in a survey conducted in the period from 2004 to 2005. This survey revealed what seemed to be a murky spot among best planners and their own management & leadership skills. It is a fact that planners spend most of their work time in planning and summarizing things for future. In the study, they found that in most of the cases, poor leadership dumps a company’s overall planning. Or sometimes even worse, poor leadership hinders planners for producing new ways of problem solving. In addition, Business Corporations seldom get success where leaders do not know how to solve a particular problem. According to one survey, â€Å"if an organization pays an average leader $80,000 a year, that leader should bring back at least that amount of value to the organization; otherwise, the person could be considered a losing investment. Ideally, leaders return more than what they are paid, thus producing profit. Past studies have shown that there is about a 40 percent deviation in performance for a given role. So, an average leader might be worth $80,000, a great leader worth $112,000 (+ 40%), and a poor leader worth $48,000 (- 40%)†. (Cost of Poor Leadership Calculator) Psychologically speaking, workers and employees who perceive their leaders abusive, experience psychological distress, boredom, increased work conflicts, lower levels of commitment towards the company’s goals and objectives, depression, lower production outputs, low levels of job satisfaction, decreased individual working capabilities, and so forth. And consequently, in the presence of these above mentioned findings among employees, it seems very difficult to achieve organizational goals in a timely manner. According to another study conducted in the UK about retail banks, the average high street bank could increase sales by ? 65 million per year by improving employee satisfaction by just 10 per cent and almost half of the 44,000 people surveyed said that poor leadership was adversely affecting their organization’s performance. Steve Young, Project Director at ISR said that, â€Å"Leadership is an area that is really letting organizations down when it comes to employee commitment, while a quarter of employees blamed either a bad working climate or low work enablers, a half blamed poor leadership. † (Poor leadership pushes down banking profits) In poor leadership, employees’ morale declines and they feel less committed towards the company and its mission. In this dilemma situation, projects are completed slowly and hastily. In addition, when employees’ morale is down, they experience boredom. Some Suggestions for Good Leadership In order to run the organization in an effective and competitive way, management makes an outline about the leadership strategies. Moreover, they should not also watch poor leadership but also eradicate the roots of poor leadership. In this regard, the following are some points that can be used by any management to improve a leader’s qualities. 1) Quietly undermine the leader 2) link with others to confront the leader 3) link with others to overthrow the leader 4) Avoid entrapment by friends and family members 5) bound the term of leadership 6) enhance the selection process 7) Create good exit options for leaders 8) Hold directors in charge make them act 9) make a system of checks and balances 10) Protect whistle blowers. Despite all these facts, a poor leader should evaluate him or her and determine his weakness and pitfalls in each and every respect of the leadership. And following are guidelines for it 1) know your power and how to use it 2) welcome the worth of leaders and cherish the assistance they make 3) recognize the seductiveness and drawback of the power of leaders 4) Study bad leadership to learn from the mistakes of bad leaders. Conclusion As I discussed above and gave several examples about good and bad leadership, it makes very clear that a company’s success and failure depends upon the fact that how leaders can lead a team to achieve an organization’s motives. Historically speaking, leaders have a significant effect on the overall business and group performance of an organization. Besides this, good leaders can apply their superior leadership skills to make things better and to turn organizational goals in the right direction. On the contrary, bad leadership affects a company’s performance negatively in terms of production, employees’ morale, ethics, communication and many other things. So, it is the responsibility of the management and the director to keep a check on the leader’s role in the organization for the sake of that organization’s success. Hence, a good leader makes a significant difference in the successful operation of any organization regardless of the scope of that organization. However, we must not forget that superior leadership is not just confined to the business sector. Effective leaders are also necessary for the peace of the whole world in every sense. References A good leader offers reality check, thank yous – The Business Journal of the Greater Triad Area: http://www. bizjournals. com/triad/stories/2004/04/26/smallb3. html Accessed, April 9, 2007. Bad Leadership: Antecedents and Prescriptions http://72. 14. 253. 104/search? q=cache:nBXXeIOGawEJ:www. koreagsis. ac. kr/bbs/pds/Bad%2520Leadership%2520Colloquium_1. ppt+bad+leadership+effects+organisation&hl=en&ct=clnk&cd=20&gl=pk Accessed, April 9, 2007 Cost of Poor Leadership Calculator http://www. ddiworld. com/imex/greatleadervalue. asp Dana Hinders, (Published June 21 2005) Michael Useem’s Leading Up: Upward Leadership In Action How To Lead Your Boss So Your Both Win Journal Article Dwyer Kevin , Journal article Poor Leadership; Poor Results. Emcc – Transforming organisations – the importance of leadership and culture in managing change http://eurofound. europa. eu/emcc/content/source/eu04006a. html? p1=reports&p2=null Accessed, April 9, 2007 Jeffrey Pfeffer and Robert I Sutton, (2000), journal article, The Half-Truth of Leadership. Stanford Business Magazine May 2006 http://www. gsb. stanford. edu/news/bmag/sbsm0605/feature_leadership. html Accessed, April 9, 2007 McLean Cari, October 18, 2005, journal article, strategic leadership: A superior state of mind. Tsun-yan Hsieh and Sara Yik, Journal article, Leadership as the Starting Point of Strategy Poor leadership pushes down banking profits http://www. management-issues. com/2006/8/24/research/poor-leadership-pushes-down-banking-profits. asp Accessed, April 9, 2007 What is Leadership? http://72. 14. 253. 104/search? q=cache:q_XTVWqb68QJ:www. med. umich. edu/csp/Course%2520materials/Fall%25202005/Thorson_What%2520is%2520Leadership. ppt+definition:+leadership&hl=en&ct=clnk&cd=6&gl=pk. Accessed, April 9, 2007.