Chapter 2: Organizational Leadership

Author: Victoria VanNest, PhD

This chapter explores what it means to be a leader and why it matters in business. You may have heard the term “leadership” and thought that meant a powerful person who is high up in an organization, but we will examine how leadership interacts within our own lives, what types of leadership styles work in different situations, and the management styles that we might employ once we obtain a position of leadership in an organization. Leadership is important for any company, but leadership is something that is practiced every day in different ways. We might consider ourselves leaders if our social group waits for us to make plans before anyone does anything, or if we are always the one that comes up with activities or ideas to do as a group. We might also consider ourselves leaders if we have people who look up to us or want to do what we are doing. Leadership is multi-faceted and will be a position that we might all be called to take on in our future business careers.

Leadership is an often sought-after trait in business. Putting someone in a position of responsibility and asking them to guide a company can be an important decision. Leadership is so ingrained in popular thought that the absence of leadership can be seen as an absence of an organization (Smircich & Morgan, 1982). The leader of any group sets the tone of the organization and provides direction and focus. Without a leader, a corporation might be thought of as a ship without a captain. Leaders also identify and guide future leaders, which creates a strong chain of leadership in a corporation with many people who can guide the company in any situation.

Leadership is a desired trait in any organization, but is poorly understood. The concept of leadership is often confused with management, and the terms are used interchangeably. Leadership and management, however, are two very different functions often filled by very different people within an organization. A deeper understanding of leadership and how it affects an organization is critical to any future business leader. The skills required and the actions taken by a leader can influence the success or failure of an organization, and the commitment of employees.

As we move through this chapter, think about how leadership has affected your professional and personal life. We can practice leadership ideals and knowledge even before we get into positions of leadership in an organization. Many of us as well have had great leaders in our lives, and we can be great leaders in the lives of others.