Organizational capacity is a concept that has received considerable attention from the public and nonprofit management literature over recent several years. Capacity entails an organization ability of realizing its goals. Capacity has been of absolute attention to scholars interested in understanding the variables that influence the organizational performance (Christensen and Gazley, 2008). The conceptual framework reflects on situational leadership theory transformational and transactional leadership styles. For the purpose of this paper, employee focused leadership refers to the decisions and actions of organization-based managers who in directing their organization and decisions, affect the employee capacity on the organization’s performance.
The style of leadership influences the organizations ability. An effective organizational leader selects the leadership style that positively affects company’s ability to increase its performance. The literature review contains the analysis of the relationship between leadership style and organizations function. The review of the literature discusses the relationship between transactional and transformational leadership styles and the organizations reaction to the style. Organization’s leadership styles within situational leadership theory The administration role is essential to improving the organization performance through leadership style and organizations capacity.
Situational theories of leadership encourage interactions among leaders, subordinates, and forces within the organization. Effective situational leadership diagnoses the forces in a particular organization and a leadership style that fits the specific situation. The challenge of situational leadership is that in practice, leaders who know the forces in operation in a specific position must also have the ability to modify their leadership style to cope with the changes in the work environment Situational leadership style The section reviews the synthesis of the leadership styles defined as the situational theory to explain the flexibility of the superior’s choices.
The use of combined leadership styles creates a tool for the leader. Blasé and Blasé, (1999) noted that situational leadership theory provides the superiors with transactional and transformational tools to ensure the best interest of the organization that focuses on employees effectiveness. According to Bertocci, (2009), the four situational models of leadership are similar because they look at the dynamics of leadership rather than the traits or behavior.
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