To what extent does leadership impact on employees in a small organization?: [Essay Example], 403 words GradesFixer

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To what extent does leadership impact on employees in a small organization?

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Leadership is one of the things that have been studied or looked at closely regardless of the different industries or sectors of the economy. There has been rising interest especially in banks and other micro finance institutions for a long time. Looking at it, it can be seen that it’s one of the most important things that make a countries economy in most societies (Belias & Koustelios 2014).

“Banks mediate between the investors and people who save at the banks as they bring about the need for individuals to make investments in certain businesses. The savers deposit the money in the bank through interest rates given by the bank”. (Lawson, 2012).

With the global crisis that has affected many countries, many scholars have developed interest in studying about bank institutions plus also the different ways in which their employees are affected that is performance wise, how satisfied they are with their roles/ jobs among others which has shown very intriguing results. For example, from the research carried out it is said that for banks to work successfully, it’s leaders should show appreciation especially to parts that deal with people as when not done well can lead to dangerous outcomes especially in times of crisis. For example, employees not behaving well, increased burn out due to lack of motivation which in turn makes the banks to lose their customers and also potential clients. (Bushra, 2011)

Also most, leadership teams in the banking sector have not taken up change due to the fact that they might not have the capacity or zeal to do so which has made it very important for leaders to encourage their employees to take on innovative behaviours hence encouraging more inventiveness and vision among the employees. This is because there has been evolution of technology, things to do with consumer behaviour which has led to a lot of competition in the sector. It is therefore very crucial for leaders to make sure that they incorporate them into their systems if they are to globally compete with other industries. (Pilcher, 2015).

Chris Skinner who is an important figure in the banking industry agrees to the fact that some banks haven’t fully incorporated and some have ignored the need for change and innovation as they focus on status and their shareholders. He appeals the leaders to encourages the spirit of innovation and also create a culture in the organization that enables innovative behaviour. (skinner, C 2015)

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