Critically evaluate the significance of leadership as it relates to Assignment

Critically evaluate the significance of leadership as it relates to driving the culture of an organisation. To support your anal - Assignment Example Leadership is usually associated with motivation; the incentive theory suggests that the employee will increase their efficiency if they are offered incentives (Handy, 2007). However, certain theorists believed that employees are often driven by economic needs which are also known as rational assumptions (Handy, 2007). Management is a logical process which requires the emotional intelligence of the manager to handle the human resources of the organization. Leadership and Management are interrelated but cannot be used interchangeably and there are three dimensions of leadership which is needed for effective management which are planning, negotiation and rewarding. Managers are concerned with the achievement of targets; however leaders are concerned with fresh approaches of how to manage the employees of the organization through inspiration and motivation. Theories related to satisfaction of the worker are very limited; a satisfied worker may not work harder but he/ she tends to stay l onger in the existing organization (Handy, 2007). As per author Kotter, management is about dealing with the complexity of the problems whereas leadership is about coping with change and bringing order and consistency in the organization (Sadler, 2003). The difference between management and leadership was first defined by theorist James McGregnor in the year 1978 (Sadler, 2003). The theory laid emphasis on the difference between transactional and transformational leadership. Transactional leadership occurs when the manager takes the initiative in offering some form of satisfaction in return for something valued (Sadler, 2003). Managers who exhibit the transactional leadership skills are usually associated with ability to attain results and solve problems through proper planning, organizing, directing and controlling and work methodically within the structure and the boundary of the organization. Organizational culture and transformational leadership are interrelated and also has a s ignificant impact on the organizational effectiveness. Transformational leadership qualities lead to excellent performance of the employees which are beyond the expectations of the organization. As per authors Denison and Mishra, there are usually four cultural traits that are related positively with the organizational performance which are involvement, consistency, participation and normative integration (Xenikou and Simosi, 2006). Managers following transformational leadership skill promote an environment that helps in achievement of high goals. Transformational leadership is mainly concerned with the intellectual simulation, accomplishment, and individual consideration. In addition it was also proved that there are certain organizations which have certain group norms that help in promoting self actualization, participation in decision making, moral and social support, cooperation etc. The organizational culture theory as proposed by Cook and Rousseau suggests that culture is comp osed of the shared values of a social group acquired through socialization process and can be acquired through socialization process and exposure to variety of culture bearing elements (Xenikou and Simosi, 2006). These culture bearing element constitute of social interaction, employee behaviour and their performance.