Organizational Culture And Leadership Style

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Small and medium-size enterprises (SMEs) play a significant role in the global economy making up over 95% of businesses worldwide (Ayyagari, Demirgu-Kunt, and Maksimovicet, 2011). With the smaller size of SMEs, direct contact with senior leadership and even an organization’s founders is commonplace. Unlike larger corporations, SMEs typically offer more responsibility and the opportunity to make a larger impact in the organization. However, mistakes by employees in SMEs have a more significant impact; therefore, there is less tolerance for error. These differences must be kept in mind when determining the organizational culture and leadership styles SMEs should adopt to promote a productive work environment that will retain talent and ensure …show more content…
A study entitled, An Integrative Definition of Leadership reviewed 160 sources of leadership definitions to generate a combined definition. From their research, Winston and Patterson (2006) synergized the following definition, “A leader is one or more people who selects, equips, trains, and influences one or more follower(s) who have diverse gifts, abilities, and skills and focuses the follower(s) to the organization 's mission and objectives causing the follower(s) to willingly and enthusiastically expend spiritual, emotional, and physical energy in a concerted coordinated effort to achieve the organizational mission and objectives” (p. 7). Northouse (2007) and Daft (2005) described leadership as an interaction between leader and follower with mutual influence achieved. From the above definition and inspiration from Northouse & Daft, the following definition will be used for this paper: Leadership is a process in which the leader interacts with, is influenced by, and influences followers; thereby, motivating them to achieve the organizational mission and …show more content…
It has a clearly organized structure and roles to facilitate followers’ achievement of set goals. Followers who perform as desired receive rewards, and those whose performance is subpar do not and may be penalized (Bass 1985). Leaders influence their followers through contingent reward, management by exception active, management by exception passive, and laissez faire (Bass, 1990; 1999). These aspects are also detailed below as theorized by Bass

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