Impact Of Leadership And Employee Motivation On Success Of A Business Organisation

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Leadership and employee motivation are the internal things of a business organization. These things are not exposed to the market. Business owners have different leadership styles and possess different ways to motivate their employees for productivity. Firstly, leadership style is the way how businessmen lead their teams. The leader is responsible for creating a path for the set goals of an organization. A leader's role is to form a positive vision for the respective organization and communicate it with its employees or team members.  There are several leadership styles; transformational, transactional and, charismatic(The CEO Institute, 2021). These all inherit the different values of the employee or team members. The way by which employees reciprocate the commands, values, and virtues of their leader is solely dependent on how positive and impactful their leader or business owner is (Faupel and Süß, 2019).

Successful Organizations run on the basis of effective decision-making, the decision-making process is in the hands of leaders. If the leaders are not wise, and operative then the team of employees are eventually going to suffer. A good leader not only takes care of his own needs but also works towards issues faced by his employees and solves their complaints to boost their morale and create a sense of belongingness with the organization. For modern businesses when the workplace is shrunk inside a cubicle, most businesses mandatorily need to follow the social distancing norms. The leadership is getting difficult due to a lack of communication(Schwantes, 2021). When the leadership is distorted, the employees also bifurcate their focus from the job. Employees tend to participate in organisational activities much. The willingness and inspiration for working hard and making an organisation successful began to blur if the correct leader is not assigned to the team of employees. 

The report contains comprehensive information about how employee motivation and leadership are interconnected.  Leadership varies company to company as its top management team takes decision of acquiring the leadership as per core requirement of entity. Leaders of a corporate world need to possess different skills whereas leaders from the teaching, law, or medical field need to possess different skills(Patel, 2017). Altogether, the different sectors require different traits in their employees, and so in the leaders. The leaders are responsible for guiding the correct path to their employees. For showing or carving a correct path, a good sense of observational and psychological skills is the utmost requirement for a leader a leader needs to understand the behavioural challenges amidst the team and handle them accordingly(MSG, 2021). They have to bear a sense of understanding to put together a cooperative environment in the workplace. All the decisions of the leaders should eventually depend upon the employee's needs. The decision should be in the favour of employees only. This can be taken by the leader who has a better understanding of what motivates the employee most, or what is the main reason they are working.

Understanding the perspective of employees is a core part of leadership. A good leader does not always throw their orders or commands their employees without understanding their way of working. Irrespective of how huge the business firm or organisation is, they are all carried forward by the employees, employees are the backbone of an organisation. If employees aren't treated well, the success of the business suffers (Al Khajeh, 2018). Employees should be motivated by several tactics like giving them deserving incentives and appraisals. All employees work hard for earning more and more incentives and claiming appraisals in their position and salary.

Leaders should mindfully distribute the incentives among the employee who truly deserve it. This will allow the employees to work harder for the organisation and make profits. Employees can also be motivated by several other factors like assigning them the work in which they have specialisation. Numerous employees join the organization to polish their skills. But, if the work of their field is not assigned to them, they might not be able to execute the work with confidence (Comaford, 2020). It is the responsibility of the leaders to look upon their employee's qualifications and assigning them the work of their interest and capability. Many times the employees suffer from a lack of motivation in the workplace due to direct orders of work. No one is investigating what best can be extracted from an employee. This can also let the organization suffer. If the employees are given work in which they can master the performance, then the work will be eventually done with perfection. This will in turn benefit the portfolio of an organisation or the business.

Thirdly, the employee also gets motivated by the transparency that is being practiced in the workplace(Naile and Selesho, 2021). Clear communication and less unhidden things ensure the feeling of belongingness and surety in the employee. If the employees aren't subjected to the full amount of information, then it causes trouble for them for working in a streamlined way.  

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The aim of the research is to critically investigate the impact of leadership and employee motivation on a business organisation. The research aims to throw light on the importance of leadership and its various types through the detailed piece of information. Alongside, the research aims to demonstrate a good leadership is connected to employee motivation and following a successful business organisation.


  • To investigate the impact of leadership on business organisations.
  • To identify the employee motivation techniques for a successful business organisation.
  • To study how leadership and employee motivation in an organisation are interconnected.
  • To study the different types of leadership styles

Research Questions

RQ1- How does leadership style impact employee motivation?

RQ2- How are leadership and employee motivation of an organisation are interconnected?

RQ3- How does leadership and employee motivation make the way of success for an organisation? 

According to the views of Pirouz (2017), when something comes to financial achievement, many individuals assume most of it is attributable to the plan devised by the company. Structure is among the few factors that contribute to accomplishment, but that is not the just one. There are so many factors that contribute to a business survival, and management is with no mistake among the most important factors. Executives must make tough choices and respond swiftly, but it should not create a dread mentality amongst staff. Accidents are made in both an individual and group of individuals and an industry's development. It may seem counterintuitive, but a strong leader does not lead. This is somebody who others desire to imitate.

The most successful managers are perfect energy generators. They are really attentive and truly interested about the well-being of everyone else. They have always had an answer and understand exactly what to expect to motivate and comfort others. They shun direct insult and pessimism and instead seek out methods to build a coalition and get individuals to operate as a unit accurately and thoroughly (Davis, 2021). An excellent leader is capable for others. A leader must be able to be believed and must be renowned for living a life of honor and fairness. A competent captain "stroll the game" and gains the authority to be responsible for others as a result. Appreciation for the leader's decent character and reliability is the foundation of absolute authority.

As stated by Heaver (2019), Staff motivation is a psychological urge to behave, which is generally motivated by personality. Ability to motivate the staff, but from the other side, is convincing them to perform whatever the firm wants because they want to. Will of doing the job turns into vitality, which is translated into effort, and then translated into outcomes. It is an important factor in improving staff satisfaction and motivation. Good presidents are also take benefit of an opportunity in the workplace. Employee participation, cooperation, and creativity will all improve as a result of a trained and motivated, as will output, attendance, and (inevitably) revenue.

A competent commander would detect their current team or individual's personal requirements and attempt to offer what motivates them to achieve their goals. Passion may come in a variety of concrete and immaterial sources. Like Promotional Opportunity, allowing employees to take risks, peer acknowledgement, monetary incentives, and greater accountability can be helpful in achieving firm's success. A monetary incentive, a corporate meal, or more days off all seem to be common strategies to inspire employees, but they are all fairly basic or uninteresting. Discovering out that what motivates people to function effectively is another of the free and low strategies for achieving motivation of employees (Faupel and Süß, 2019). It is indeed crucial to figure out what other elements of the work each employee enjoys so much and which they despise. If at all feasible, assist that employee and become much more active in aspects of his or her employment that fascinate him or her. When a profession or hobby fits with just a user's standards and beliefs, they will naturally put out considerably more effort and enjoyment.

As per the views of Bacal (2019), every major operational transformation necessitates administration and professional executives accomplishing what they have been hired for- to lead. That relates to bad, unpleasant, and catastrophic adjustments like as cutbacks and unemployment, as well as good improvements which influence employees' working career. Whenever changes are imposed (as in shrinking circumstances), the capacity of leadership to...well, lead is obviously a most significant factor of "walking through the marsh." According to the research on the matter, the substance of the adjustment is ancillary to workers' assessments of top and middle management's capability, expertise, and trustworthiness.

Workers turn to top management for just some issues at a company where they have trust in their skills. Workers demand smart and reasonable management, assertive and successful decision, and frequent, comprehensive interaction throughout periods of significant transition. Workers see management as helpful, attentive, and devoted to employee well-being during some of those times of transition, while also understanding that critical choices must be taken (Heaver, 2019). To recapitulate, there seems to be an atmosphere of mutual trust between both the manager and the rest of the players. The development of this trust instils optimism for a prosperous future, making it even easier to cope with abrupt difference.

According to Faupel and Süß (2019), the cornerstone to navigating through the muck is leadership prior, throughout, and then after transformational change. Regrettably, if one has not built a history of successful administration, it will be too dark by the time that needs to cope with tough transitions. Individuals in firms with inadequate management anticipate nothing good to happen. Staff knows that in an environment of suspicion, executives will act in mysterious ways which does not appear to have been in anyone else's greatest advantage. Lack of leadership culminates in a lack of optimism that, if left unchecked for too longer, leads to an existing idea collapse. The enterprise must cope with the visual consequences of unwelcome change, but more significantly, it must work under the gravity of workers who have decided to give up, have lost confidence in the system, and have stopped believing in the capacity of managers to turn the company back.

It's not simple to take a leadership role in all the segments. Not just to to have a leadership job to fulfil, but users also have to cope with their personal responses to the upheaval and the involvement in it as a worker. Nevertheless, whether one is poor at transformative leadership, users will have a massive personal burden to carry (Johennesse  and Chou, 2017). Users will just have to cope with the continuing decreased productivity that can follow from poor management transformation, not to note the possible impact on the personal pleasure of the job, because leader is responsible for the success of his unit.

According to the views of Rao (2017), Employee engagement strategies must be adapted to a company's specific involvement challenges, while each company is different, It's all well and great to have a sports environment, provide free food and drink, and bring in desserts, but does it truly solve the core reason of why the workers are disengaged and why there is a need to plan during the first place, good employee participation initiatives are not and cannot be led just by HR; they require participation from all sectors in order to produce results. Internal communication initiatives and events that originate straight from the workforce may be more productive. Performance management strategies can benefit greatly from open and normal to expect.

Employee engagement methods, in an idealistic situation, would increase the probability of an individual developing a meaningful relationship with the company. Whenever an employee's perceive deeply attached to a company, they are more inclined to remain in the company. Company satisfaction has a significant correlation to job performance. When an individual does well in the workplace, the company gets financially benefitted. As a result, it's a performative loop. It makes more sense for the company, sector, department, and company to function better together even if an employee is involved and doing stronger than anticipated.

Furthermore, increasing employee engagement necessitates a far more systematic approach; as a result, companies should first establish employee engagement strategies and practice guidelines, then strive to effectively execute those. Employee disengagement is unquestionably a worldwide problem. Eight  out of ten employees are currently disinterested. This mindset has a negative impact on the company's survival and expansion, as well as the attitude of the other employees.

Employee satisfaction techniques and industry standards are essential for modern enterprises because they promote a positive working atmosphere. An agency's progress is stifled by a gang of clock watchers. Employee engagement pertains to how devoted individuals are to the company and how enthusiastic they seem to be about their employment. Workers that are emotionally invested in their role and the company are more likely to be involved (Lee and Hidayat, 2018). If an individual is totally immersed in his work or is motivated to go above and beyond what is required in his professional position, he is called offer higher. These personnel perform for the firm's aims, not merely for a salary or even the next advancement.

The leadership style of a supervisor may have a significant influence on employee participation. Managers that refuse to identify their workers by building good connections, as mentioned in the Front Desk session "Inspiring and Involving Workforce," risk losing talented employees. This indicates that an employee's immediate superintendent's actions may greatly affect their degree of involvement. Individuals are far more prone to withdraw if they believe their supervisor is excessively controlling or supervises their job. Supervisors that create a more participatory and permissive style enable their workers to "get through the task" rather than burdening them down with plenty of guidance and empower their employees to "get through the business" by cultivating a more collaborative and permissive manner.

As evaluated by Alan Grey, any large business, irrespective of company size or sector, need the proper kind of leadership effectiveness. Corporations can only develop if they have decent management in available to facilitate them do so. When a founder of The Company lacks the necessary abilities, he or she will be unable to properly encourage their staff. As a result, the company is unable to attract fresh possibilities (Madhavi and Raja, 2018). People in positions of leadership must understand that the success of their organisation comes first, not their own personal demands. They must concentrate on what the company can accomplish by working together with the rest of the team.

Strong leadership offers everyone around the organisation the assurance that they too are being led by those who are trustworthy and competent. Ensure successful individuals to explore new ideas and travel into uncharted territory, allowing them to grow both personally and professionally. You will win the team's commitment and trust by providing adequate advice.

In the views of AI Khajeh (2018), strong performance management element that helps corporations becomes more creative and results-oriented. Leaders start the current processes by informing employees about the policies and procedures and initiating the necessary procedures for completing tasks. Successful leaders recognise the value of cooperation and how to make the best use of everyone's abilities. It will be tough to win the confidence and respect of employees if they are unable to collaborate with others to reach a common objective.

Appropriate training may increase the abilities of each employee in the organisation, allowing everyone to execute their tasks effectively. Staff employees must be trained in order to understand what is expected of them now and to improve their abilities. One should be able to connect with people of unique personalities and qualities and accept them. Consumers should be able to approach someone and trust that company will respond to their requirements professionally (Naile and Selesho, 2021). Employees must also feel at relaxed in their presence, since this will make this easier for you to provide them with the incentive they require to do their tasks.

Employees that are approachable will be aware of any obstacles they may face and will be able to solve any issues that arise. It will be simpler to get tasks done successfully if one has strong leadership abilities. Creating a productive working atmosphere that aids in the company's business expansion and development. Strong insights and recruiting individuals who can implement those ideas are the foundations of profitable entrepreneurs. The capacity to put new ideas into action will set them apart from other leaders. Leaders are in charge of directing the group and should, as a result, have highest standards of integrity. One must appreciate genuine and fundamental business values since the firm that operate and the people who work for business reflect what the company is. People that work in the same organisation must strive for the same goals, which can only be accomplished if the leader is able to communicate effectively. To increase productivity, new team members should be taught, and current team members should be trained on a regular basis.

According to the views of Moon et al. (2020),motivation is an objective characteristic that helps a person to achieve his or her objectives. It encourages a person to strive hard to achieve his or her goals. To make a difference and Executive requires the right attributes for leadership. Motivation has no clear formula; on the other hand, one should have an open mind as a leader about human nature. If you are aware of several requirements of subordinates, it will be a lot easier to make judgments. Both the personnel and the management need leadership and motivational characteristics. A good leader should be highly educated in motivating things. All employees, colleagues, and employers have basic requirements to understand. Leadership has two components: the first focuses on the job at hand; the second, and crucial, concerns the public. Effective leaders can excite and drive employees, which leads to higher productivity levels.

As per the views of Lee and Hidayat (2018), leaders must give their staff a sense of satisfaction so that they may understand the worth of the numerous tasks they do. You need both enthusiasm and motivation in order to perform better. Sound leadership approaches might contribute to their cultivation.  In the past, there has been little emphasis paid to the link between management and motivation. The circumstance in which two components of organisational behaviour are combined to achieve good growth in a business organisation. The impacts of motivation inside an organisation, since motivation cannot be measured or quantified, cannot be felt nor recognised over time by the company's performance. The motivating process is complicated and can only be a simple task unless consideration is taken of the influence of leadership on leadership. Nonetheless, it is possible for a company's leader to encourage employees without having a beneficial impact on the firm.

Different initiatives to motivate employees might be made. It is important to emphasise, however, that the current management style might hinder or strengthen such initiatives. For example, most workers, if qualified and competent, will be encouraged to contribute their expertise. Unless carefully cultivated, it cannot exist in a firm (MSG, 2021). A leader is responsible for changing the leadership style to ensure that people are pleased with work. For example, reducing the degree of monitoring is one method of making employees happy at work. Over their subsidiary, efficient leaders can't. This might create discomfort and a sensation of threat. Most workers would want to work in the least popular atmosphere. This is important since they should all be held accountable and accountable for their conduct.

As per the opinion of Madhavi et al. (2018), good leadership is also recognised for the added effort of the employees. Employees should be recompensed for doing extremely well. In order to enhance motivation, leadership appreciation, both monetary and verbal, is valued. One of the major aspects contributing to team members motivated by their leadership is the team binding spirit that develops over time. Team members typically establish emotional ties with their leaders, making it difficult to distinguish between them. He or she is regarded as a manager rather than a leader even if a new team leader comes on board .This implies that excellent leadership and motivation are not connected overnight. This is a time and space process.

Interesting to know: Recommendations For Building Build Better Leadership And Motivational Relationship Among The Employees! , Concept and Role of leadership within the CompanyThe Impact of Organisational Leadership

Interview Questions

Q 1) Are you aware of the concept of leadership within the company?

Q 2) Do you know the role of leadership in the success of the company?

Q 3) Have you heard about the usage of leadership techniques for improving the business performance of the company?

Q 4) In your opinion does employee motivation helps businesses in attaining success?

Q 5) Do you believe, there is a relationship between employee motivation and leadership?

Q 6) According to your viewpoint, which leadership style is most suitable for the business entities through which they can effectively attain success?

Q 7) Do you believe the adoption of the right leadership style helps businesses in enhancing employees' sustainability within the company?

Q 8) In your viewpoint, do businesses must stick to one leadership style, or do they move to another as per the requirement of the customers?

Q 9) As per your perception, what is the best way of enhancing motivation among the employees?

Q 10) In what manner do leadership puts influences the growth of the company?

Q 11) Do you think, adopting an autocratic leadership approach would help the company in enhancing its growth rate?

Q 12) How top management team of the company can effectively reduce the employee turnover rate with an effective leadership approach?

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