It is proved that the traditional thoughts on effective leadership its relationship with organisational success should be reviewed. Moreover, it has been made clear that the criteria for characterizing a leadership style as effective can be different across countries with different social ethics and culture. In any case, it is made clear that effective leadership can lead to organisational success, even in the long term.
The criteria used for evaluating the success of modern organisations can vary. Usually, organisational success is related to the performance of an organisation in terms of employee satisfaction (Sims 2002, p.144). More specifically, it is believed that a high level of employee satisfaction reflects the ability of the firm to communicate with its stakeholders, a condition that its critical for its success (Sims 2002, p.144).
Kirby & Watson (2003) note that organisational success is often evaluated using one of the following criteria: ‘a) survival, b) growth and c) profitability’ (Kirby & Watson 2003, p.46). Each of the above criteria includes a series of sub-criteria; for example, growth reflects a firm’s potential to expand and to keep the performance of its employees at high levels (Kirby & Watson 2003, p.46). Still, the evaluation of an organisation’s success using the above criteria can be inaccurate mostly because the potentials of each organisation to achieve high profits or to survive in the market are differentiated according to the years of the firm’s presence in the market (Kirby & Watson 2003, p.46). For example, the criteria of growth would be more valuable when referring to ‘the start-up of the organisation’ (Kirby & Watson 2003, p.46). Profitability also should not be used as a criterion for evaluating organisational success in the early years of the firm’s presence in the market (Kirby & Watson 2003, p.46). Rather, profitability would be a critical criterion for evaluating ...Show more