Lack of Leadership Consequences in Organization Performance and Work Environment!

Lack of Leadership Consequences in Organization Performance and Work Environment!

Consequences in the organisation performance.We’re clearly experiencing a crisis in leadership, said Richard Edelman, president and CEO, Edelman. “Business and governmental leaders must change their management approach and become more inclusive by seeking the input of employees, consumers, activists and experts such as academics, and adapting to their feedback. They must also pass the test of radical transparency.”.

“Not every executive is a fraud or cheat but if the system permits cooking the books, defrauding investors, overcompensating executives, rigging prices, polluting the environment, breaking unions and abusing workers, then it puts pressure on every business to move in those directions. The excesses of managers have helped destroy many corporations, millions of good jobs and the retirement security of tens of millions.”

 

David Moberg

What is the crisis in business and leadership is the compelling desire of individuals to maximise their personal gain, power, and influence at the expense of others and at whatever cost? What we are seeing today is leadership malfeasance, and it may be only the tip of the iceberg. Leadership wrongdoing isn’t new; it has plagued humankind since the beginning of recorded history. It arises from personal misconduct and the evil caused by a malicious, malignant influence generated by an individual’s desire for personal gain.

What is the crisis in business and leadership is the compelling desire of individuals to maximise their personal gain, power, and influence at the expense of others and at whatever cost? What we are seeing today is leadership malfeasance, and it may be only the tip of the iceberg. Leadership wrongdoing isn’t new; it has plagued humankind since the beginning of recorded history. It arises from personal misconduct and the evil caused by a malicious, malignant influence generated by an individual’s desire for personal gain.

When leaders are deficient in any aspect of the personal character, the choices they make are based on misaligned morality, which results in havoc and chaos. These leaders are unable to pay attention to the core tenets that serve as a baseline for our fundamental values, attitudes, and beliefs, the essence of who we are as a people, our culture, and the moral fibre that binds each of us together.

Effective leadership behaviour manifests itself as a set of moral choices and acts, so leaders must consistently be concerned with right and wrong and the impact of their actions and behaviours on others. At the end of the day, leaders must be judged by a code of conduct that cannot be superseded by inflated quarterly earnings reports, initial public offering opportunities, stock options, and exaggerated bonuses.

Stereotyping contrast between Management and Leadership

What are common characteristics of ineffective leadership, and the best practices to improve leadership and its impact on organisational performance?

Ineffective leader “Someone who engages followers, but fails to produce the desired results. Ineffective leaders do not create the intended outcomes, due to a combination of missing traits, weak skills and poorly conceived strategies, among other attributes. To distinguish, unethical leaders fail to distinguish right from wrong” Kellerman.

Effective leader: “Someone who engages followers, and achieves the desired outcomes. While effective leadersattain goals, one must recognise that effective leaders are not necessarily ethical leaders who strive to create positive results for the common good” Bennis. While Hitler may be an example of an effective leader, as he achieved desired outcomes, he also exercised unethical behaviour and violence to attain goals.

Effective leadership is an essential element to success in all types of businesses. Still, many organisations fail to define effective leadership and the practical methods for evaluating, training and upholding these leadership standards. Without clear expectations and a vision for effective leadership, organisations often do not recognise ineffective leadership until short- and long-term damage to the organisation is done. Furthermore, organisations that do not encourage and model effective leadership are more likely to experience ultimate failure.

The key pillars that shape the effective leadership are Ability to form and act out a vision, Authenticity, Integrity and Competency. Not surprisingly, despite the differences in people, industries, cultures and more among these three companies, common traits of ineffective leadership were identified:

1. Inflated self-interest
2. lack of empathy
3. Inability to formulate and act out a vision
4. Incompetence

Consequences in the work environment

“People leave managers, not companies”  Marcus Buckingham.

“The results of a recent survey showed that toxic environment and lack of communication are more likely to make you lose your best employees rather than work overload”  Cameron L Morrissey.

More than 40% of the respondents stated that a toxic work environment can drive the best employees away, followed by lack of recognition 35% . Lack of challenge , passion or purpose came at the last 2 places with 10% and 13% respectively.

While elements of trust, bureaucracy and accountability hovered around the middle. The toxic environment at work can be driven by unhealthy competitiveness, lack of teamwork, lack of purpose and vision or a style of leadership that frustrates employees rather than motivates them. 

This can be tackled by paying attention to your employees, focusing on hiring not only talents and capabilities but also employees that would complement the harmony of the team.

Working on having a healthy work environment can help keep your best employees aboard. For modern businesses, employee engagement is key. High engagement leads to reduced turnover, higher productivity, and increased profitability. 

However, the latest research from Gallup shows that less than 30% of employees are engaged at work. Management is one of the top reasons cited for lack of engagement in the workplace, representing 70% of the variance between high and low engagement.

That's a big deal of the factors that contribute to manager-led engagement, communication tops the list. If you can't communicate effectively with your employees, you can say goodbye to engagement, productivity, and retention.

Sources :

http://www.inc.com

Cameron L Morrissey, bestselling author of the "7 Deadly Sins of Leadership."

The Author : Ahmed Farghaly

About : 

Twenty-Three years of Production & Process Operations Troubleshooting hands-on experience in Gas Processing,LNG,LPG & NGL recovery and Ethylene Cryogenic plants, Shared in six Megaprojects Detailed Engineering, Pre-Commissioning,Commissioning and Successful initial Start-ups until Normal Operations.Leading the operational readiness assurance for three LNG Megaprojects from Pre-feasibility Studies, Concept Selection,Definition,Tendering ,Bid evaluation,value engineering and Execution phases until Handover.

Subject-Matter Expert

LNG/Petrochemicals/Set Up Operations Management System&Team/Pre-Commissioning, Commissioning,Initial Start-Up/Competency Management/Project Management/Scheduling/Project Controlling/Process Modelling/Revamp/De-bottle-necking/Green and Brownfield Development/Shared in set up of PSM,ERP,RBI,CMMS,RAM and RCM systems/Process Modifications Optimization,Plant Performance Monitoring/Shutdown Planning/Annual Turnaround/Tackling Plant Emergencies/Competency Profiling/Recruitment/Total Plant Safety/Abilities Of Trouble-Free Communication /Handling Megaproject labour force tactfully in working area.